Who Pays for the Rental Car While Your Vehicle is in the Shop?

The extent of rental car coverage in car accidents depends on a number of factors. While you have your car repaired, will your insurance company pay for the rental? Will the other driver’s insurance company pay? Or will you be stuck with an out-of-pocket expense?

Rental Car Coverage When the Other Driver Was at Fault for Causing the Accident

According to the Texas Department of Insurance, if the other driver caused the accident, that driver’s insurance company should pay for your rental car. However, they will only pay to rent a car for a reasonable amount of time. The time depends on the estimated labor hours to repair your vehicle. Delays often occur when shops discover more damage or have to order parts. Under these circumstances, the insurance company may increase the interval for rental coverage. However, you should find out if the shop has any delays and ensure the delay is covered.

The insurance adjuster might decide your car has been totaled and notify you. If so, a few days after the notification, the company typically stops rental car payment. However, when cars are totaled, the insurance company also pays to replace your car.

What Other Circumstances May Include Payment for a Rental?

Any of the following types of car insurance cover rental car fees:

  • Uninsured/underinsured motorist coverage if the at-fault driver didn’t have insurance or enough insurance coverage
  • If the accident was a hit-and-run and you have uninsured/underinsured motorist coverage
  • Rental reimbursement coverage pays if you were in an accident
  • Comprehensive coverage pays when your car is stolen

In general, you can expect your rental to be paid during the time it takes for car repair or replacement. In addition, insurance pays a set daily amount based on policy’s dollar limits for rental coverage.

Have You Been Involved in a Vehicle Accident?

If your accident involved serious injury or extensive damages, the Law Office of Michael R. De La Paz can help you recover compensation. We have assisted clients throughout Texas, from McAllen to Arlington and San Antonio.