Are insurance companies required to pay car rental in total loss claims?
On One Hand: For the Policyholder.In general, you have the option of adding a rental car rider to your auto insurance policy. If you choose to purchase the rider, then your company must pay for your car rental for a reasonable period between the accident and when you replace the car. If you pass on the rider, then it doesn’t have to.On the Other: For the Claimant.If you’re in an accident that’s somebody else’s fault, that person’s insurance is required to reimburse you for all losses you incur because of the accident. That includes replacing your vehicle, lost time from work, pain and suffering and, yes, car rental. Most policies define how long they’ll pay for a rental car, but it’s generally a reasonable amount of time.Bottom LineYour company must pay car rental only if you purchased the rental rider. Another person’s car company will have to cover rental in most cases.
I think that it really depends on what insurance you have taken out on your vehicle or the incident that happen that determines what the policy pays out. It might be a good idea to ask a finance professional before you apply for insurance or to figure out what you already have if you don’t know how to read your contract.
