Does Insurance Cover Rental Car After Accident?
Most auto insurance policies may cover rental cars after an accident, but the level of protection depends on whether the policy includes rental car insurance coverage and accident protection benefits.
To get the benefits, you are advised to check with your existing auto insurance policy about the coverage and other aspects.
Will Your Personal Auto Insurance Cover a Rental Car after an Accident?
A personal auto insurance policy may provide coverage in certain situations. Look at the following to know when your insurance will cover rental cars after accidents:
Options with Existing Policy:
Rental reimbursement coverage: If your existing auto insurance policy includes rental reimbursement coverage, it will definitely cover damage to rental cars and expenses caused by accidents.
Extended benefits: If you have extended the benefits of your existing auto insurance policy and have collision/comprehensive coverage, it will cover the rental cars if something unexpected happens.
Other Options:
Coverage by the rental company’s insurance: In case your existing policy does not have extended benefits (for any reason), you can have Loss Damage Waiver or Collision Damage Waiver from your preferred car rental company.
Credit card coverage: Many credit card companies provide primary or secondary rental car insurance coverage on their Visa, MasterCard, etc. cards. Still, verify if the coverage is available for accidents.
Note: Keep in mind that personal auto insurance generally does not cover the ‘loss of use’ and ‘administrative fees’. So, make sure you have coverage before renting a car.
How to Check Insurance Coverage for Rental Cars in Your Existing Insurance Policy?
Even though rental cars are covered in some policies, you must check if the accidents, related damages and expenses are reimbursed or not. For this, do the following:
Check your auto insurance policy and its documents to see if the coverage is available for accidents involving rental cars.
Browse through the website or app of the insurance company, as some insurers put the information there.
Contact the concerned service provider via phone call or directly at the local branch.
Will the Other Person's Insurance Pay for a Rental Car Accident?
Yes, if you are not at fault, the other driver’s/person’s insurance policy will generally pay for the damage, medical expenses, and other costs involved. Check out the following to know more about this:
Liabilities: The other person’s insurance will pay for the car rentals after they take the liabilities for the accidents.
Type of Rentals: Such coverage is only available for a similar-sized car. Additionally, it is for the same value of the car, not for upgraded versions.
Reimbursement vs. Direct Billing: Most insurance companies opt for methods to control costs instead of reimbursing the renters later. However, direct billing and reimbursement can both be done.
Alternative Coverage: When the other party is not accepting fault swiftly, you can utilize the personal rental reimbursement coverage and pay out of your pocket to get reimbursed later.
