Does the At-Fault Driver Pay for a Rental Car? – When we meet with a car accident, we get puzzled about what to do. Several questions suddenly come to our mind. One of the most common ones is, “Who pays for the rental car after an accident?” If you are the victim, you likely want to know whether the at-fault driver is responsible for covering the costs.
Does the at-fault driver cover the cost of your rental car when your vehicle is in the repair shop or needs replacement? The answer to this question is simple. It depends on several factors, including insurance policies, state laws, and the accident situation.
Who Pays for a Rental Car After an Accident?
After an accident, life can get complicated. After health, one of the first things you have to handle is transportation, especially if your daily routine depends on a vehicle. If your car is damaged and needs repairs, or worse, is crushed, you may need a rental car.
But who pays for it? Does the at-fault driver or their insurance cover the cost of your rental? This is a common concern for people who have just faced an accident.
Well, the good news is that, in most cases, the at-fault driver’s insurance should cover the rental car expenses. Let’s learn more about this topic and see how it works.
When your car is damaged in an accident and needs repairs, you may need a rental car. But who pays for it:
- In most cases, the at-fault driver’s insurance covers the rental car.
- However, limits and conditions apply.
- Some states follow “no-fault” rules, affecting who pays.
How Insurance Policies Work?
In most states, drivers must have liability insurance. This insurance covers the damages caused by the at-fault driver in an accident.
If another driver causes an accident and damages your vehicle, their insurance should cover the repair costs. But it is not so easy.
If your car is in the shop, and you are unable to use it, you may need a rental car to do your urgent or daily work.
Although the at-fault driver’s liability insurance generally covers this cost as well, there can be limitations, which we will discuss next.
Most states require drivers to have liability insurance. This covers damage caused by the at-fault driver. If another driver hits your car:
✅ Their insurance pays for your car repair.
✅ Their insurance covers your rental car while your car is in the shop.
❌ But there may be daily limits on rental costs!
You can read also: What are the panalties for unauthorized driver of rental car?
What Are the Rental Car Coverage Limits?
The at-fault driver’s insurance company mostly pays for a rental car, but there are some limits too. Most insurance policies keep a daily limit for rental cars.
For example, they may cover $30 to $50 per day for a rental vehicle. Also, there can be a total time limit, such as only covering a rental for up to 30 days.
If your repairs take longer or the rental car costs more than the daily allowance, you may need to pay the remaining balance from your pocket.
Even if the at-fault driver’s insurance covers the rental, they may have limits on:
| Rental Coverage | Typical Limits |
| Daily Rental Cost | $30 – $50 per day |
| Maximum Rental Period | Up to 30 days |
| Car Type Restrictions | No luxury or special cars |
Note: If your rental car costs more than the coverage allow, you must pay the extra cost yourself.
Check also: Does state farm cover rental cars after an accident?
What About Your Own Insurance?
Sometimes, your personal insurance also plays an important role in the case of accidents. If you have rental car coverage on your own policy, it can provide some help.
Also, if the at-fault driver’s insurance takes time to process the claim, your own insurance can pay for the rental.
Later, your insurance company can get reimbursement from the at-fault driver’s insurance. This full process is known as “subrogation.”
Sometimes, your personal insurance can help, especially if:
- The at-fault driver’s insurance is slow to process the claim.
- You have rental reimbursement coverage.
- The at-fault driver is uninsured.
Note: This process is called "subrogation", where your insurance pays first and later gets reimbursed by the other driver’s insurance.
Know also: What Happens If You Damage a Rental Car from Enterprise
No-Fault States & Rental Car Payments
No-fault states” are places where, after a car accident, each driver’s own insurance pays for their medical bills and damages, no matter who caused the accident. You do not have to prove the other driver was at fault to get coverage for certain costs.
This means that if you live in a no-fault state, your insurance may pay for your rental car, even if you were not at fault.
You must have the right coverage on your own policy to cover these costs. So, in no-fault states, the process works a little differently.
If you live in a no-fault state:
- Your insurance may cover the rental car.
- You must have rental reimbursement in your policy.
- The at-fault driver’s insurance may not pay directly.
What to Do After an Accident?
If you want to get proper coverage for your rental car expenses, it is important to take the right steps after an accident. First, contact the at-fault driver’s insurance company and file a claim.
You also need to provide details about the accident and the damage to your car, like pictures, time, details of another driver, and more.
Next, you need to take your car to a repair shop to get an idea of repair cost. Generally, the insurance company agrees to pay for the repairs to your car and then allows you to get a rental car.
Make sure you discuss with the insurance company about the daily rental limit so you know what coverage you will get.
Follow these steps to make sure your rental car is covered:
- File a claim with the at-fault driver’s insurance.
- Provide accident details (photos, police report, driver info).
- Take your car for a repair estimate and confirm rental coverage.
- Confirm daily rental limits before booking a car.
Know also: Do You Have to Clean Rental Cars
What if the At-Fault Driver Doesn’t Have Insurance?
If the at-fault driver does not have insurance, things get more complicated for victims. In this case, they may need to use their own insurance if they have uninsured motorist coverage.
This type of coverage helps protect you when the other driver does not have any insurance. It can also cover your rental car costs when your vehicle is getting repaired.
If the at-fault driver does not have insurance, you may need to use your uninsured motorist coverage.
Do You Have to Pay for a Rental Car First?
In some cases, you might have to pay from your side for your rental car, even if the at-fault driver’s insurance is responsible.
For example, if you rent a car that costs more than your insurance covers daily or if the repairs take longer, you might need to pay the extra costs yourself.
That is why it is good to choose a rental that fits within the insurance company’s coverage. This saves you from paying additional expenses after an accident.
Sometimes, YES! You might need to pay for the rental first and later get reimbursed.
To get reimbursed:
- Keep all receipts.
- Follow up with the insurance company.
- Confirm that you are renting within the allowed daily budget.
When Can You Get Reimbursement?
Sometimes, you might have to pay for the rental car first, and later you get reimbursed. This happens when there is the claim process takes much time. You should keep all receipts and documentation related to the rental.
Once they approve the claim, the at-fault driver’s insurance company will reimburse you for the rental car costs. You should be in touch with the insurance company to make sure everything is quick, correct, and in order.
If the process takes too long, your own insurance may cover it first and get paid back later.
How Do Car Rental Companies Work with Insurance?
Well, many rental car companies know how to work with insurance companies after an accident.
After an accident, when you rent a car, you can tell the rental company that your insurance covers or handles the rental as part of an accident claim.
They usually contact directly with the at-fault driver’s insurance company to check payment. This makes the process easier for you, so you do not have to deal with the payment yourself.
Most rental car companies know how to handle accident claims. When you rent a car:
- Tell the rental company you are using insurance coverage.
- The rental company may contact the at-fault driver’s insurance directly.
- You might not need to pay upfront!
How to Avoid Extra Rental Car Costs?
To avoid additional costs, you can follow these easy tips when renting a car after an accident:
- Prefer the daily rental allowance provided by the insurance company.
- Book a car similar in size to your own vehicle to avoid higher costs.
- Confirm with the insurance company how long they will cover the rental.
- Also, say no to buying extra insurance from the rental company if your current insurance already covers the rental car.
- Return the car on time to avoid late fees.
How Long Will Insurance Cover a Rental Car?
The number of days your insurance will cover a rental car varies based on several factors, like the type of coverage or how long repairs take. Usually, the insurance company will cover the rental for as long as it takes to repair or replace your vehicle.
Remember generally, there is a time limit, such as 30 days. If the repair takes longer, you may need to discuss this with the insurance company or pay for the extra days yourself.
Insurance usually covers the rental car until your vehicle is repaired or replaced. However, limits may apply:
| Factor | Rental Car Coverage |
| Repair Time | Covers rental until your car is fixed. |
| Total Loss | Covers rental until you receive a settlement. |
| Time Limit | Usually 30 days max. |
Note: If repairs take longer, you may need to pay for extra rental days yourself.
Conclusion
In short, if you meet with an accident and you are a victim, the at-fault driver’s insurance should cover your rental car. There are some limits to what the insurance will pay, so it is important to understand your coverage.
Once you understand your rights and discuss things with your insurance and the at-fault driver’s insurance company, you can save yourself from paying extra costs from your own pocket.
Always check on your claim and pick a rental car that fits your insurance limits, so there will be no delays in getting your money back. Remember that proper communication and being updated are the best ways to get coverage for your rental car smoothly.
Frequently Asked Questions
Yes, if another driver caused the accident, their insurance should cover your rental car costs while your vehicle is being repaired.
If the at-fault driver’s insurance is delayed, you might need to pay for the rental car yourself and seek reimbursement later.
Your insurance may cover rental car costs if you have rental reimbursement coverage. This optional coverage helps pay for a rental car while your vehicle is being repaired after an accident.
Insurance usually pays for a rental car until your car is repaired or replaced, typically up to a reasonable time limit, often around two weeks.
Without rental reimbursement coverage, you’ll need to pay for the rental car yourself. If the other driver is at fault, you can seek reimbursement from their insurance.
