Rental car

When the other driver caused the crash

TDI’s auto insurance guide says that if your accident was caused by another driver, the other driver’s insurance company will pay for you to rent a car. It says you can keep the rental for the time the company believes is reasonable for your car to be repaired, and that the company bases that time on the estimated number of hours of labor.

Two practical points follow from that wording. First, the rental period is tied to the repair estimate, so a low or incomplete estimate can also mean a short rental. Second, the guide tells drivers to let the adjuster know about any delays in getting the car fixed. It says the company might extend the rental if there are delays because the repair shop had to order parts or found more damage. Keep the shop’s written notes about parts orders and supplemental damage, and send them to the adjuster when they arrive.

Fault is often not settled in the first days. The other company may not agree right away that its driver caused the crash. While that is being worked out, you may need to look at your own policy instead of waiting.

When your own policy pays

TDI lists four situations in which your own insurance company will pay for a rental car:

• You have uninsured/underinsured motorist coverage and the driver who caused the accident did not have insurance or enough insurance.
• You have uninsured/underinsured motorist coverage and the accident was a hit-and-run.
• You have rental reimbursement coverage and were in an accident.
• You have comprehensive coverage and your car is stolen.

The same guide says your company will pay only for the time it believes is reasonable to repair or replace your car, that it pays a set amount each day, and that it pays only up to your policy’s rental coverage dollar limits. Elsewhere TDI explains that rental coverage is one of the coverages with a dollar limit, meaning the most the company will pay even if the cost is higher. Some policies, TDI notes, also pay for taxis or ride-hailing services instead of a rental.

TDI also warns, in its hit-and-run material, that uninsured motorist coverage will not pay for a hit-and-run accident if you did not report it to police. If the other car left, read the hit-and-run page before you assume a rental will follow.

Read the declarations page first

TDI calls the first page of a policy the declarations page and says it summarizes your coverages, dollar limits, and deductibles. Before calling about a rental, look for:

• whether rental reimbursement appears at all, and its daily and total limits;
• whether uninsured/underinsured motorist coverage was kept or rejected in writing;
• whether you have collision coverage, which matters if the other company refuses to pay;
• the deductible amounts, since a claim on your own policy usually involves one.

If the rental agency’s daily rate is above your policy’s daily limit, the difference may be yours to pay. Ask the adjuster which rate the company will cover before you sign the rental agreement, and get the answer in writing if you can.

If the car is totaled

TDI says that if the company totals your car, it might stop paying for the rental a few days after telling you. That short window is a reason to start looking for a replacement vehicle as soon as a total loss seems likely, rather than after the settlement check arrives. The totaled car page covers how the payout is figured.

Damage waivers at the rental counter

TDI explains that the rental agency’s damage waiver is not insurance; it is an agreement that the agency will not charge you for damage to the car you rent. TDI says your own auto policy might already cover a personal-use rental under liability or comprehensive coverage, with possible exclusions, and suggests asking your agent before you rent whether you need the agency’s liability policy and damage waiver. That question is worth asking before you are standing at the counter after a crash.

A short record that helps

Keep these together, off this website: the claim number and adjuster’s name for each company; the date the rental started; the repair estimate and any supplements; the shop’s notes on parts delays; receipts for the rental, fuel charges, and any rideshare trips; and any message telling you when rental payments will stop. The evidence page lists other records people are told to keep.

Questions to ask the adjuster

• Is the rental being paid under liability, my rental coverage, or another coverage?
• What daily rate will you pay, and is there a total limit?
• How many days are approved, and what estimate is that based on?
• What do you need from the shop if parts are delayed?
• If the car is a total loss, on what date will rental payments stop?

If you think a company is not following the rules, TDI’s Consumer Help Line is 800-252-3439. TDI says its ability to help can be limited and that it cannot decide who was at fault. This guide is not legal advice and does not create an attorney-client relationship.