Empire Fleet Solutions

The question regarding whose insurance is responsible if you are involved in an accident with your rental car is quite straightforward.  It all really depends on who is responsible for the cause of the accident.  However, certain technicalities do play a role.

Find below the different scenarios which determine whose insurance company is responsible if you are in an accident with your rental car:

• If the other vehicle caused the accident, it is subsequently the at-fault insurance company’s responsibility to pay for damages to your rental car.  They will need to pay you either the fair market value of your damaged car, or pay for the complete repairs of your rental car, depending on the damages.  However, due to the fact that they do not yet have their client’s version of the accident, they may refuse payment for a while.  This in effect means that your insurance company will have to pay for the repair of your damages (if you have such an option) and then claim the costs from the at-fault insurance company as soon as they take full responsibility.

• If the other vehicle caused the accident but its driver has no insurance, your insurance company is subsequently responsible to pay for your damaged rental car.  There is no sense in threatening the other driver with legal action if he does not even have the money to repair his own car, let alone your rental car.

When the accident happens to be your fault, your insurance company will have to pay for all damages incurred during the accident.  This includes paying out the fair market value of the other party’s damaged car as well as paying for complete repairs to the other party’s car.  However, it sometimes happen that your insurance will not pay out immediately, which means that the other party’s insurance will claim the repair costs against your insurance company when they admit guilt.  However, your rental car will be repaired immediately.

Getting a rental car from an insurance company when involved in a car accident is one of the more difficult issues one has to deal with.  While waiting for your car to be repaired, you still have to go to work and drop the kids off at school.  Getting a rental car is especially important if you only have the one car in your family.  Ensure that the rental car provided is comparable to your damaged vehicle. 

There are three basic ways which you can follow to get a rental car after your motor accident:

• Insurance Company Takes Immediate Responsibility

The at-fault driver’s insurance company agrees to immediately accept liability for the car accident.  In this case, the insurance company will pay for your rental car until they pay you the fair market value of your damaged car or pay for the complete repairs of your car.  

• You Have Your Own Rental Coverage Insurance

It could happen that the at-fault insurance company makes no decision regarding your car.  This is usually the result when they cannot obtain their client’s version of the accident.  In this case, you should enquire whether or not you have car coverage through your own insurance company.  If you do, they will pay for your rental car while issues surrounding your damaged car are being handled.  In turn, your insurance company will fight the at-fault driver’s insurance company to get compensated for the money they paid for your rental car once the responsibility for the car accident issue has been resolved. 

• Insurance Company Makes No Decision

An extremely problematic issue facing you when seeking a rental car is if the at-fault insurance company either denies responsibility or withholds their decision during the time period you need a rental car.  The at-fault insurance company is responsible for paying for your rental car during which time you are in need of a car.  If they either later agree they are responsible or are found to be responsible, then they are obligated to pay you for the money you spend on a rental car.