Who Pays for a Car Rental After an Accident?

A car crash turns your life upside down. Instead of enjoying your daily routine, you face disruption in your work, daily errands, home life, and health. 

If your car was damaged but not destroyed, you may have it taken to a shop for repairs. While the shop works on your vehicle, you still need a way to get around town. Rental cars are a popular option for those who need temporary transportation. But, who pays for your rental car while the shop fixes the accident damages? If your vehicle is totaled, who pays for a rental while you find a replacement vehicle?

I Need a Rental Car After an Accident. Who Pays For It?

In South Carolina, the party at fault for the accident or their insurance pays for the rental car.

For example, suppose that you are waiting your turn at a red light. Another driver, headed toward you, ignores the red light and crosses the center line, hitting your car. It’s determined that the other driver is at fault for the crash. This driver or their insurance policy must pay the cost of your rental car while your vehicle is being repaired. 

South Carolina law requires insurance companies to reimburse your loss for a “reasonable and necessary” amount. Often, the cost of a rental car is included in this definition. Your rental car costs are more likely to be deemed “reasonable and necessary” if you’re renting a vehicle at market rate and your rental is essential for you to carry out daily tasks like going to work, school, medical appointments, or running household errands. It’s also likely to be a “reasonable and necessary” cost if your own vehicle is not driveable. 

Common Limitations on Car Rentals After an Accident

Despite the “reasonable and necessary” requirement, many insurance policies attempt to limit their costs by refusing to pay for a rental car after a specified time. For example, Progressive Insurance and Allstate Insurance policies pay for a rental car for up to 30 days., These policies pay a set amount per day toward the costs of the rental car.

Problems may arise if you need a rental car for longer than the insurance covers. If the rental costs more than the insurance’s per-day limit, you may need to pay the difference out of pocket.

If repairs to your damaged vehicle are taking longer than originally thought, our legal staff will contact the at-fault driver’s insurance and have them verify that the repairs are extended and that they need to pay for the extension. After all, you would not be without a vehicle if not for the at-fault driver. 

If you were the at-fault driver, then you are most likely dealing with your own insurance company. You can ask your insurance to pay for the added cost but if they refuse you may need to pay it out of your pocket.

Protecting Your Rights After a South Carolina Car Accident

Whether the insurance company is covering your rental car costs or refuses to do so, you can take steps to protect your legal rights after an accident:

• Save all your paperwork. Save bills, receipts, and other paperwork you receive from the auto repair shop and the car rental service. Also, save paperwork from any medical visits and any other costs related to your accident. This paperwork helps you establish a claim for compensation.
• Keep a log. When you talk to an insurance company, a repair shop, or a rental service, keep a log of the conversation. Write down the date, time, who you spoke with, and a summary of what was said. This log can help you keep track of your vehicle and your costs.
• Don’t sign anything that releases the insurer from liability. An insurer may ask you to sign a settlement or other document in exchange for rental car coverage. Do not sign anything before speaking to an experienced attorney. 
• Talk to an attorney. Feeling overwhelmed after an accident? You don’t have to navigate insurance alone. Speak to a knowledgeable car accident lawyer for assistance. 

What To Do If You Need Help Navigating Insurance After A Car Accident

The aftermath of a crash may include a totaled vehicle, physical and psychological injuries, and other struggles. Insurance company delays or denials make the process harder.

If you need help dealing with insurance or securing compensation after a car accident, talk to an experienced South Carolina car accident attorney today. The team at Steinberg Law Firm is dedicated to helping our clients protect their rights and secure the compensation they deserve. Contact us today to schedule a free, confidential consultation.