Will an Insurance Company Reimburse Me for a Rental Car After a Car Accident?
After a car accident, one of the most common and frustrating questions people face is whether the insurance company will reimburse them for a rental car. If your vehicle is damaged and needs repairs—or is declared a total loss—you’ll need transportation in the meantime. The good news is that insurance companies can reimburse you for a rental, but who pays and how quickly it happens depends on several important factors.
When the Other Driver Is at Fault
Texas follows an at-fault insurance system, which means the driver who caused the accident is legally responsible for paying for the resulting damages—including the cost of a rental car. If the other driver’s insurance company accepts liability, they should cover the cost of your rental for a reasonable period while your car is being repaired or replaced.
However, insurance companies often take time to investigate and confirm fault before approving payments. That means you may need to front the cost of a rental temporarily or go through your own policy first while the investigation is pending.
Using Your Own Insurance for Faster Access
If you have rental reimbursement coverage on your own auto policy, you can use it right away without waiting for the other driver’s insurer to finish their investigation. Your insurance company will pay for the rental upfront and then subrogate—seek repayment—from the at-fault driver’s insurer later.
This coverage is optional, but it’s highly beneficial. Depending on your policy, it will typically pay for a rental vehicle for a set daily rate (for example, $40–$50 per day) up to a maximum number of days.
If you’re unsure whether you have this coverage, review your policy’s declaration page or contact your insurance representative immediately after the accident.
If You Don’t Have Rental Coverage
If you don’t carry rental reimbursement on your own policy, you can still get reimbursed—just not immediately. You may need to pay out of pocket for a rental vehicle while waiting for the other insurance company to determine liability. Once fault is accepted, you can request reimbursement for the rental costs you incurred.
To protect yourself and ensure repayment, always:
Keep all receipts and rental agreements.
Rent a similar type of vehicle to the one damaged (not a luxury upgrade).
Return the rental promptly once your car is repaired or a settlement offer is made.
When Your Vehicle Is Totaled
If your car is declared a total loss, the insurance company will typically pay for your rental vehicle until a settlement offer is extended for your totaled car. Once you accept the offer, the insurer may end the rental coverage, giving you a few additional days to secure a new vehicle.
It’s important to act quickly once a settlement offer is made because insurers are not required to keep paying for rentals indefinitely.
Why Legal Representation Helps
Insurance companies often delay rental payments, underpay claims, or dispute liability—leaving you without transportation. Having an experienced personal injury attorney can make a major difference. Your attorney can help:
Confirm which insurer should pay for your rental vehicle.
Push for immediate reimbursement.
Ensure the full rental period is covered.
Pursue additional compensation for your injuries and losses.
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