Can I Claim Damages for Rental Car Expenses After a Car Accident?
Yes, you can often claim damages for rental car expenses after a car accident in Pennsylvania. If another driver’s negligence caused the crash that damaged your vehicle, you generally have the right
to be compensated for the cost of a temporary replacement car while yours is being repaired or replaced. This process, however, involves understanding your rights, the insurance companies involved, and the documentation you need.
Key Takeaways for Claiming Damages for Rental Car Expenses After a Car Accident
- Individuals can often pursue compensation for rental car costs from the at-fault driver’s insurance company after an accident.
- This type of compensation is known as a “loss of use” claim, which is part of the property damage portion of a car accident case.
- The length of time a rental car is covered depends on a “reasonable period” for repairs or until a settlement is offered for a totaled vehicle.
- Insurance policies, both the claimant’s and the at-fault party’s, may have specific limits on daily rental rates and the total duration of coverage.
- Disputes with insurance companies can arise over fault, the type of rental car provided, and the length of the rental period.
- Proper documentation of all expenses and communication is fundamental when seeking reimbursement for a rental vehicle.
Understanding “Loss of Use” and Your Right to a Rental Car
When your car is sitting in a repair shop or a tow yard after an accident, you’ve lost more than just a piece of property; you’ve lost its function. The law recognizes this inconvenience. The legal term for this is loss of use. In simple terms, loss of use refers to the financial damages you suffer because you are deprived of your vehicle’s utility. The most common way to measure these damages is by calculating the cost of a reasonable rental car.
Filing a claim for rental car costs is part of your property damage claim. This is an important distinction because it is handled separately from any claim you might have for physical injuries. Even if you were not hurt in the crash, you still have the right to have your vehicle repaired and to be compensated for the loss of its use while it is out of commission. The goal is to put you in the position you were in just before the accident occurred, and that includes having access to reliable transportation.
Who is Responsible for Paying for My Rental Car?
After an accident, one of the most pressing questions is, “Who pays for this?” When it comes to your rental car, there are typically two main avenues for seeking payment: the at-fault driver’s insurance company or your own insurance policy. The path you take can depend on the specifics of your situation, the other driver’s coverage, and your own policy details.
Filing a Claim with the At-Fault Driver’s Insurance
If the other driver was clearly at fault for the accident, their insurance company is responsible for your damages, including your rental car. This is called a third-party claim, because you are a “third party” making a claim against someone else’s policy.
- How It Works: You or your attorney will contact the other driver’s insurance provider to open a claim. They will investigate the accident to confirm their policyholder was at fault. Once they accept liability, they should cover the costs of a rental car for a reasonable period.
- Potential Challenges: This process can sometimes be slow. The other insurer may delay their investigation or dispute their driver’s fault, leaving you without a car in the meantime. They might also try to limit the daily rate they are willing to pay for the rental.
Managing a third-party claim requires persistence and a clear understanding of what you are owed.
Using Your Own Insurance Coverage
A potentially faster option is to use your own auto insurance policy, provided you have the right coverage. This is known as a first-party claim.
- Rental Reimbursement Coverage: This is an optional coverage you can add to your auto insurance policy. If you have it, your insurer will pay for your rental car up to the limits specified in your policy. These limits are typically expressed as a per-day amount and a total maximum, for example, $40 per day up to a total of $1,200.
- The Subrogation Process: When you use your own coverage for an accident that was not your fault, your insurance company will often pay for your rental upfront. Then, they will pursue the at-fault driver’s insurance company to get that money back through a process called subrogation. This means your company works to be reimbursed, so the claim ultimately does not count against you.
Using your own insurance is often quicker because you are dealing directly with the company you have a contract with. However, you must have purchased this specific coverage before the accident occurred.
Documenting Your Expenses: Steps to Take for Your Claim
While you are dealing with the aftermath of an accident, it is vital to keep detailed records. When you make a claim for rental car expenses, the insurance company will require proof. Being organized from the start can make the reimbursement process much smoother.
Once you are home and safe, begin gathering all the necessary paperwork related to your transportation needs.
- Keep All Receipts: Save every receipt from the rental car company. This includes the initial rental agreement and the final, itemized bill showing the daily rate, taxes, and total duration.
- Document Communication: Keep a log of every conversation you have with insurance adjusters from both companies. Note the date, time, who you spoke with, and what was discussed. If they make promises or give you instructions, ask for it in an email to have a written record.
- Take Photos of the Rental: It is a good practice to take pictures of the rental car when you pick it up and drop it off. This protects you from any false claims that you damaged the rental vehicle.
This documentation serves as your evidence and can be incredibly helpful if disputes arise over the cost or duration of your rental.
What Kind of Rental Car Can I Get?
Insurance companies are generally required to provide you with a vehicle that is of “like kind and quality” or “reasonably comparable” to the one that was damaged. This means you should be able to rent a vehicle that meets your daily needs in a similar way your own car did.
If you drive a small, fuel-efficient sedan for your commute, you will likely be approved for a similar compact car. If you have a large family and rely on a minivan with three rows of seating, you should be provided with a comparable minivan or large SUV. You are not expected to cram your family into a two-door coupe.
Problems can arise if you drive a more unique vehicle, such as:
- A work truck with a ladder rack and tool storage.
- A vehicle modified for a driver with a disability.
- A high-performance or luxury car.
In these situations, it may be harder to find a direct replacement. However, the at-fault party’s insurer is still responsible for providing a solution that reasonably accommodates your needs. It is important to communicate these specific needs clearly and advocate for a vehicle that allows you to continue your daily life with minimal disruption.
How Long Can I Claim Damages for Rental Car Expenses?
You are entitled to a rental car for a “reasonable period.” This is one of the most frequently disputed areas in a property damage claim. A reasonable period is not indefinite; it is the amount of time it should realistically take to repair your car or, if it is a total loss, to receive a settlement offer and purchase a new one.
What determines this period?
- Time for Inspection and Estimate: The insurance company needs time to inspect the vehicle and approve the body shop’s repair estimate.
- Time for Repairs: This includes the time it takes for the shop to order parts and perform the labor. If parts are on backorder, this can sometimes extend the reasonable period, but insurance companies may push back.
- Time for a Total Loss Settlement: If your car is declared a total loss, the rental period typically ends a few days after the insurance company makes a settlement offer for your vehicle’s value. This gives you a short window to accept the offer and find a replacement car.
You have a duty to mitigate your damages, which is a legal way of saying you cannot unnecessarily prolong the process. For example, you should not delay in getting your car to a repair shop or in making a decision about repairs. Any delays on your part could result in the insurance company refusing to pay for the full rental period.
Common Issues When Seeking Rental Car Reimbursement
Even in a straightforward accident, getting an insurance company to promptly and fully cover your rental car can be a challenge. It is an unfortunate reality that providers may try to minimize what they pay out. Being aware of common hurdles can help you prepare for them.
Some frequent issues include:
- Denial of Liability: The other driver’s insurance company may deny that their policyholder was at fault, forcing you to use your own coverage or pay out of pocket while the dispute is resolved.
- Delays in Approving Repairs: An adjuster might take an unreasonably long time to inspect your vehicle or approve the repair estimate, leaving you in a rental car longer than they are willing to cover.
- Disputes Over the Rental Rate: The insurer may argue that you rented a more expensive car than necessary and refuse to pay the full daily rate.
- Prematurely Cutting Off Coverage: An insurance company might tell you that your rental coverage is ending before your car is actually ready, pressuring you to accept incomplete repairs or a low settlement offer.
These tactics can be incredibly frustrating, especially when you are just trying to get back to your normal routine. A Philadelphia personal injury lawyer can help you stand up to the insurance company and advocate for the full compensation you are entitled to.
Pennsylvania’s Insurance Laws and Your Claim
It is helpful to understand how Pennsylvania’s car insurance system works. Pennsylvania is known as a “choice no-fault” state. However, the “no-fault” part primarily applies to medical benefits for injuries. For property damage, like the repairs to your car and your rental vehicle expenses, Pennsylvania operates on a traditional fault-based system.
This means the person who caused the accident is responsible for the property damage. According to the Pennsylvania Statutes Title 75, Section 1705, your choice of “limited tort” or “full tort” affects your ability to sue for pain and suffering, but it does not affect your right to have your vehicle repaired or to claim damages for rental car expenses. The at-fault party’s insurance is still on the hook for your property damage, regardless of your tort selection.
Knowing this empowers you to push back if an adjuster tries to use confusing “no-fault” language to deny or limit your property damage claim. Your right to claim damages for rental car expenses after a car accident is based on who was at fault for the crash.
Life without a vehicle in the Philadelphia area can feel impossible. From the congestion on the Schuylkill Expressway to simply getting your kids to practice, a car is essential. A car accident shouldn’t force your life to a complete halt.
FAQs: Claiming Damages for Rental Car Expenses After a Car Accident
Here are answers to some common questions about getting a rental car paid for after a collision.
What if my car is declared a total loss? How long do I get a rental?
If your car is a total loss, the insurance company is typically responsible for your rental car costs until they make a fair settlement offer for your vehicle’s value. Once that offer is made, coverage usually ends within a few days, giving you a short period to formally accept the settlement and find a new car.
Can I get reimbursed if I use rideshare services like Uber or Lyft instead of a rental car?
In many cases, yes. If you use ridesharing services as a substitute for a rental car, you can submit your receipts for reimbursement. The key is that these costs must be “reasonable.” You should try to keep your rideshare spending comparable to what a rental car would have cost for the same period.
What if the other driver was uninsured or underinsured?
If the at-fault driver has no insurance, you may need to rely on your own policy. Your collision coverage would pay for your car’s repairs (after your deductible), and your rental reimbursement coverage would pay for your rental car. If you have Uninsured Motorist (UM) coverage, it might also apply in some situations.
Do I have to use the insurance company’s preferred rental agency?
No, you are not required to use their “preferred” vendor. You have the right to choose your own rental car company. However, insurance companies often have pre-negotiated rates with certain agencies, and they may only agree to reimburse you up to that negotiated rate. It is often simpler to use their recommended provider to avoid out-of-pocket expenses.
What if I don’t have rental reimbursement coverage on my own policy?
If you do not have rental reimbursement coverage, you will have to make a claim with the at-fault driver’s insurance. If they are delaying or disputing the claim, you may have to pay for the rental car yourself upfront and then fight for reimbursement later. This is a situation where legal assistance can be particularly valuable.
Contact a Philadelphia Car Accident Lawyer Today
Dealing with insurance companies after a car accident can be frustrating. You should not have to fight for the basic compensation you need to get your life back on track. If you are struggling to get your rental car expenses covered or are facing any other challenges after a crash, we can help.
At Leonard Hill – Personal Injury Lawyers And Car Accident Lawyers, our team is dedicated to helping accident victims in Philadelphia. We use honest communication and provide personalized attention to help our clients pursue the maximum compensation the law allows.
To discuss your case and learn more about your options, contact us at (215) 567-7600 or through our online form for a free consultation. Let us help you down the path to recovery.