How Long Will Insurance Pay For A Rental After An Accident?
How long will an insurance agency pay for a rental car after an accident? After confirming that you have your car insured, its time to look at your policy. If you have not already taken the time to read over your insurance policy I suggest you begin there. The insurance industry can be tricky so read closely!
When signing up for any insurance policy there are four types of agreements that you may opt-in for including liability insurance, comprehensive insurance, collision insurance, and rental insurance. Many times when you sign up for an insurance policy your agent will talk you into adding a rental agreement which may or may not cover your needs after an accident.
Insurance companies are always looking for ways to shave a few dollars from the cost of a claim, and reimbursements for rental-car costs often are the first to meet the blade. We recommend purchasing coverage of at least $30 – $50 per day minimum towards a rental vehicle.
When it comes to filing a claim with your insurance company you will be one of the following, the insured or the claimant. If you are the claimant, or the person who has been hit, there will be no limit on how long the insurance agency will pay for a rental car. The insured drivers agency will pay rental costs for the length of time that it takes to repair your vehicle. However, it is important to remember that the insurance agency will not pay for any additional days after your car has been repaired unless previously agreed upon. If your car is totaled, many companies will pay for your car rental as a courtesy, but they are not required to do so.
If you have been involved in an accident where you are at fault, and will be using your insurance policy to repair your vehicle, then the length of rental coverage will vary based on your policy. It is highly recommended to call your insurance agency and review your policy before signing any rental agreements. By reading your policy you can find out both how much your a covered up to per day, and also a cap or limit on the maximum amount your insurance agency will pay for. For example, if you have a $30 per day limit with a $900 cap, this will allow you rent a vehicle for up to 30 days ($900 / $30 = 30 days). Understand that your daily limit and cap are based on tax included numbers and that you will be responsible for anything over that amount.
You DO NOT have to rent from where your insurance company sends you too. If the rental company that you choose provides you a vehicle that is equal to or less then your rental policy then you will be covered. You will have to pay out of pocket for anything over your daily coverage limit.
Check with you credit card companies to see if they offer a rental car program which could save you money.