Rental Cars

When you have been involved in an accident and your vehicle has become disabled you will need to have alternate transportation. Obtaining a rental car has become an expense that both the insured party and the claimant have become very frustrated with because they do not understand how the rental car process works. The following guidelines will assist you in this process.

If you are the insured party and have rental reimbursement on your policy, you can obtain a rental car. Your car must have been in an accident and a claim filed with your carrier. This coverage does not apply for mechanical breakdowns or personal use. (See Rental Reimbursement.)

If you are the claimant party who has filed a claim against the at fault party’s insurance company and they have accepted liability-responsibility for the accident, you are entitled to a rental car. This is referred to as loss of use.

The rental car company will usually require a credit card debited for a designated amount, a valid drivers license, proof of insurance and in most cases, they will require you be of certain age to obtain a rental car. (21 - 25 years of age in most cases). They will debit or credit your card for the difference once the actual rental amount owed is determined. A check or cash is generally not accepted.

The insurance company does not owe to pay this expense up front or have you set-up on a direct bill with the rental car company because you do not have a credit card or the resources to pay for the rental car. In most cases, the insurance company will reimburse you for this expense with proof of rental. In some cases, depending on the insurance company, they will set-up a direct bill for you but it will depend on the insurance company and their philosophy regarding payment of rental cars. Sometimes the insurance will pay the rental expense to you when they receive the estimate of repair costs. This is called “cashing out rental”. Basically, the amount of time it will take to fix your car based on the number of labor hours on the estimate is calculated to determine an amount of rental expense that would be owed. You can see more on this in the FAQ’S part of this section.

If your vehicle is safe and legal to drive the insurance company will expect you to drive your car until the repair shop is ready to begin repairs and all the parts have been ordered.