Motorists often want to know who pays for car hire after an accident that damaged their vehicle. They may have caused it or had no fault. In any case, they lose the use of their automobile and have to rent another one until repairs are complete. The exact circumstances and policy terms determines how it is dealt with and who ends up with the bill. Various questions on the subject will be answered below.
The main question is do insurance companies pay for auto rental? Yes, there is coverage for it following damages to automobiles. However, going about asking for it can be a bit tricky as you may need to look at how things are set up and conspired first before you apply.
Hopefully you ask this question before you have a crash. Then you can arrange Rental Car Reimbursement with full coverage auto insurance. Usually, it is pretty affordable and readily available.
How to Get a Hire Car After a Claim?
If the automobile is damaged and it is covered you may be able to get a replacement until it is fixed, you receive a settlement for it or up to certain number of days, depending on the circumstances and terms. If the incident was your fault you need to have a policy that includes collision and comprehensive to meet the damages. Also, you need to have Rental Reimbursement too.
Some companies may have provisions for such expenses automatically with a standard full coverage auto insurance policy while you may have to buy this as add on with others. Many people are highly dependent on their vehicles to go to work, pick up children from school and carry out essential tasks. Particularly one-car families who live out of town may not be able to go about their lives easily when they lose the use of their vehicle. If this is the case, you need to make sure that you have it covered. Otherwise, you will need to cough up the money out of pocket.
Usually hired vehicle coverage comes with daily limits. You can only get an auto that is within this allocated daily spendable. In other words, you cannot go and get an expensive car and expect them pay for it when you have a typical automobile.
How Long Will Insurance Pay for It?
Another question often asked is how long can I keep it? Most policies stipulate a time limit and usually it is for 30 days. It ends when the repairs are done or replacement cost paid for a totaled vehicle earlier. Some states may allow it until the vehicle is fixed and returned to the owner or it is fully settled for a totaled auto, as long as the applicant doesn’t cause the delay.
However, you can keep it for a longer period if it was someone else’s mistake and a third party insurer will compensate you. You can probably keep it until the vehicle is fixed or it is settled. It is their problem if they take time to settle with the body shop or open market value in case the vehicle is written off.
Not at Fault Accident Auto Rental Payments
You can still ask for this when others involved. If someone else was responsible you can claim your losses from third party carriers. Hopefully, they will accept liability quickly and deal with it. But this may take some time, especially when the other driver is unresponsive.
Then, you may be forced to consider other options. One of them is to apply to own provider if it is included. They would pay for the losses including hire costs but it would initially go down as a claim on your policy that can result in premium increase. Its status may be changed to no fault and deductible you paid returned if they successfully subrogate the money they paid to you.
Sometimes, third party insurers can be difficult to deal with. They can delay accepting responsibility or deny it. If own policy doesn’t have provisions you may have to front the costs if you desperately need a vehicle to get on with life. They will have to reimburse you once they accept the responsibility or they are made to accept it.
Usually, there is no deductible for rental vehicle settlements because you pay collision or comprehensive deductible for the repairs when your carrier compensate it. There is no deductible in case of claims on third party car insurance companies.
In addition, you should keep in mind that the existing coverage may include auto hiring while accident damage is repaired. Don’t buy anything from anyone before checking with your provider first and see if you have it already or can add.
In conclusion, you can get a substitute automobile after a collision and have the insurance pay for it if it is included or it wasn’t your fault. Actually, you can include this expense in a claim for repairs or total loss. The damages don’t have to be due to a collision. It could be due to any perils like fire, storm, water or civil disturbance. If a company is meeting the repair costs they usually include the replacement vehicle too.
As you can see you can arrange a policy the way you want with many additions and exclusions and still keep it affordable. However, you need to be prepared to look into it and get a few quotes to compare. Each time you make changes the price will go up or down and it will be more with some companies and less with others. It is your job to find out which will work out the best at the end and if you need to switch.