After a car accident, you might need a rental car to get around while your vehicle is undergoing repairs. This can leave you questioning who will pay for the costs of the rental car while you are waiting. Whether it is your insurance, the at-fault driver’s insurance, or you pay out of pocket depends on a few essential factors. A personal injury lawyer can explain your options.
No-Fault Coverage and Property Damage Claims After a Car Accident
When it comes to motor vehicle accidents, South Dakota is not a no-fault state. As a result, the person responsible for the accident is typically liable for the damages. However, if another driver caused the accident, their insurance should cover your rental car costs under property damage liability.
However, there are a few things to consider:
- Determining Fault – Before the at-fault driver’s insurance agrees to pay, they must confirm that their insured caused the accident. This can sometimes take time, so you might need to cover the rental costs initially and get reimbursed later.
- Limits on Coverage – The at-fault driver’s insurance may only cover rental costs for a reasonable period. For example, they might pay for a rental while your car is being repaired or until you receive a payout for a totaled vehicle.
- Property Damage Claims – If you’re filing a property damage claim with the at-fault driver’s insurance, ensure you include rental car costs as part of your claim. Keep all receipts to document your expenses.
Paying for a Rental Car Accident Through Your Own Coverage
If you cannot wait for the at-fault driver’s insurance to process your claim, your insurance might help cover the rental car costs. This depends on the type of coverage you have. The available options may include:
Rental Car Coverage
Some policies include rental car coverage as an add-on. This coverage pays for the costs of your rental while your own vehicle undergoes repairs, regardless of who caused the accident. Check your policy to see if you have this option.
Collision or Comprehensive Coverage
If the accident was your fault, your insurance might cover rental costs under collision coverage. Comprehensive coverage may apply for non-accident situations like theft or weather damage.
Deductibles
Remember, using your insurance might involve paying a deductible. This is an upfront cost you’re responsible for before your insurance kicks in.
While using your insurance can speed up the process, you may need to wait for reimbursement from the at-fault driver’s insurance to cover your out-of-pocket expenses.
Does the At-Fault Driver Pay for a Rental Car?
In South Dakota, the at-fault driver’s insurance is usually responsible for covering rental car costs. However, this process doesn’t always happen smoothly:
Delay in Determining Fault
Insurance companies need to investigate the accident before accepting liability. During this time, you might need to pay for a rental car yourself and seek reimbursement later.
Rental Period
The at-fault driver’s insurance will only pay for a rental car for a reasonable amount of time. For example, they might cover the rental until your car is repaired or you’ve received a settlement for a total loss.
Coverage Limits
If the at-fault driver’s insurance has low property damage limits, their policy might not fully cover all your expenses.
Being prepared with detailed documentation, including repair estimates and rental car receipts, can make it easier to get reimbursed.
Will Insurance Cover a Rental Car After an Accident?
Whether insurance will cover a rental car depends on the type of policy you have and who is at fault. Here’s a breakdown of what to expect:
- Your Insurance – If you have rental car coverage, your policy will likely pay for a rental while your car is out of commission. This is especially helpful if the other driver’s insurance delays the process.
- At-Fault Driver’s Insurance – Their property damage liability should cover your rental car if they caused the accident, but only for a reasonable rental period.
- Uninsured Drivers – If the at-fault driver doesn’t have insurance, you’ll need to rely on your own coverage or pay out of pocket.
Knowing exactly what your own insurance policy and knowing what it covers can help you avoid surprises after an accident.
What Happens If Your Car Is a Total Loss?
If your vehicle is declared a total loss, rental car coverage typically lasts until you receive a payout from the insurance company. This process can take time, especially if there’s a dispute over the value of your vehicle.
- Replacement Value – The insurance company will calculate your car’s value and issue a payout based on that amount.
- Rental Period – The rental car is usually covered until a settlement is finalized or until you’ve had a reasonable amount of time to purchase a replacement vehicle.
In some cases, you might need to cover rental costs if the process drags on, so it’s important to stay in touch with the insurance company and your attorney.
Avoiding Out-of-Pocket Costs
While it’s possible you might need to pay for a rental car upfront, there are ways to minimize out-of-pocket expenses. These include:
Know Your Coverage
You should check your insurance policy to see if you have rental car coverage or other benefits that can help.
Work with Your Insurance
Filing a claim with your own insurance might speed up the process, even if you need to wait for reimbursement.
Keep Records
Save all receipts and any documents you receive that are related to the rental car, including agreements, invoices, and repair timelines. This information can help ensure you’re reimbursed for your costs.
Why a Car Accident Lawyer Can Help
Dealing with rental car costs after an accident can be challenging, especially if the insurance company is slow to process your claim. A car accident lawyer can handle the paperwork for you, negotiate with the insurance company, and make sure your rights are protected.
If you are dealing with rental car issues after an accident in South Dakota, call Turbak Law Office, P.C. at 605-886-8361 or contact us online. Our team is ready to help you understand your options and work toward a resolution that makes sense for you.