Who pays for a rental car after accident damage usually depends on who caused the crash and what coverage you have. If the other driver was at fault, their liability insurance typically pays for a reasonable rental while your car is repaired. If you were at fault, or fault is still being decided, your own auto insurance policy's rental reimbursement coverage is usually what pays. Here is how rental car coverage works, how to get a rental vehicle quickly, how long insurance will pay for it and which rental costs you may still owe.
Who pays for a rental car after an accident?
If the other driver was at fault
Nebraska is an at-fault state, so the driver who caused the accident is responsible for the damage, and their liability insurance pays your claim. Their property damage liability coverage generally includes a comparable rental car while your vehicle is being repaired, often called loss of use. To start a property damage claim with the at-fault driver's insurance company:
- Get the other driver's name, insurance company and policy number at the scene.
- Open a claim with their insurer as soon as you can.
- Ask the insurance adjuster to set up a rental, and ask whether they will pay the rental car companies directly or reimburse you.
The at-fault insurer may need to confirm liability before it approves a rental.
That can take a few days, so report the claim the same day if you can.
If you were at fault, or fault is not settled yet
Your own car insurance policy pays for a rental only if you have rental reimbursement coverage, sometimes called transportation expense coverage. It is an optional add-on to collision or comprehensive coverage, and it pays up to a daily limit and a total limit per claim.
How rental car reimbursement coverage works
Rental reimbursement insurance is usually one of the less expensive coverage options, and it only applies after a covered insurance claim. If your car is in the shop because of a collision or comprehensive claim, the policy pays your rental expenses or other transportation expenses, like rideshare or public transit on some policies, up to your coverage limits.
Coverage limits are usually written as a daily amount and a per-claim maximum. If your rental fees run higher than the daily limit, you pay the difference. If repairs take long enough to reach the per-claim maximum, the coverage ends even if the car is not finished. Check your declarations page or call your own auto insurance agent to see which limits you carry.
If fault is still being decided, you can often use your own rental coverage first. If the other driver is later found at fault, your insurer may recover the cost from their insurer.
Rental reimbursement vs. rental car insurance
These are not the same thing. Rental reimbursement on your auto policy pays for a rental while your car is in the shop after a covered claim. Rental car insurance, like the damage waiver a rental counter offers, covers damage to the rental car itself. Your existing auto insurance may already extend to a rental vehicle, so ask your insurer before you buy extra coverage at the counter.
How to get a rental car after an accident
- Report the claim. Call your insurer, or the at-fault driver's insurer, and get a claim number. The claims process moves faster when you have photos, the police report number and the other driver's information ready.
- Ask what is covered. Ask for the daily limit, the total limit and the vehicle class you are approved for.
- Choose your repair shop. In Nebraska, you choose where your car is repaired. Your insurer may suggest a shop, but you do not have to use it.
- Book the rental. Many insurers work directly with rental companies and can bill them for you. Some shops have a rental counter on site.
- Keep your receipts. If you pay up front, you will need them to be reimbursed.
How long will insurance pay for a rental car after an accident?
Usually for the reasonable time it takes to repair your car. If your car is a total loss, coverage typically ends a few days after the insurer makes a settlement offer. With your own rental reimbursement coverage, it also ends when you reach the policy's total limit.
Repairs sometimes take longer than estimated, especially when a shop finds more damage after taking the car apart or parts are delayed. The Nebraska Department of Insurance suggests asking your insurer and repair shop up front what happens to your rental coverage if repairs take longer than originally estimated.
Rental car expenses insurance may not cover
Even when a claim is approved, some rental car expenses can land on you.
Compare your rental coverage options before you book, and watch for these:
- Know your daily limit. If you rent a bigger car than your coverage allows, you pay the difference.
- Ask about extras. Fuel, extra mileage, added drivers and damage waivers may not be covered.
- Stay in touch with your shop. Ask for updates so you know when your car will be ready and can return the rental on time.
- Return it promptly. Rental days after your car is ready are usually not covered.
- Skip the upgrade. Luxury cars and large SUVs usually cost more than the coverage allows unless your own car is comparable.
What if the insurance company won't pay for the rental?
Start by asking the adjuster to explain the decision in writing. Disputes are often about fault, the vehicle class or how many days the repair should take, and many can be settled with documentation from your repair shop.
If you are stuck, the Nebraska Department of Insurance consumer hotline is 1-877-564-7323. It can help you understand your insurance coverage and how to file a complaint against an insurance provider.
When a car accident lawyer can help
If you were injured or the at-fault driver's insurer refuses to accept liability, a car accident lawyer can explain whether you are owed compensation for rental expenses and other losses.
Do rental costs affect your insurance rates?
Rental costs are part of the claim, so they follow the claim. Whether a claim raises your insurance rates depends on your insurer, who was at fault and the size of the claim. If the other driver was at fault and their liability insurance pays, the claim generally goes against their policy, not yours. Ask your agent how a claim on your policy would be handled.
Can you add rental coverage after an accident?
You can add rental reimbursement to your policy at any time, but it will not cover an accident that already happened. It only applies to future claims. If you drive every day and do not have a second car, it is worth asking your agent what it costs.
Getting a rental at Gateway Auto
Our collision center at 110th and Harrison in La Vista has Enterprise on site, so you can drop off your car and pick up a rental in the same stop. We work with every insurance company, and our collision estimates are free and walk-in. You can also start your estimate with photos online.
Frequently asked questions
Does the at-fault driver's insurance have to pay for my rental?
In an at-fault state like Nebraska, the at-fault driver's liability coverage is generally responsible for your reasonable loss of use, which includes a rental. Their insurer may confirm fault before approving it.
Do I get a rental car if my car is totaled?
Usually for a limited time. Rental coverage typically ends a few days after the insurer offers a settlement on the total loss.
What kind of rental car will insurance pay for?
Usually a car comparable to yours, up to the limits of the coverage that applies. Ask the adjuster what class you are approved for before you book.
Does liability insurance cover my rental vehicle after a car accident?
If the other driver caused the car accident, their liability insurance generally covers a reasonable rental while your vehicle is repaired. If you caused it, their policy does not, and your own rental reimbursement coverage applies instead.
Can I get a rental car at the body shop?
At Gateway's La Vista collision center, yes. Enterprise rentals are picked up and dropped off at our shop. Call (402) 932-0500 with questions.
Written by Ben Toscano, co-owner of Gateway Auto, a family-owned repair and collision shop serving Omaha since 2002.
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