Do Insurance Companies Pay For A Car Rental After an Accident?
Unfortunately, we have no reason to expect fair or equitable treatment, much less generosity, from insurance companies. They’re notorious for treating claimants as if they have no entitlements whatsoever. One instance of this is when the insurance company tries to get you to a rent a vehicle that does not match the value of your damaged vehicle.
In California, your rights as an auto accident victim include rental coverage for a vehicle of equal value to the vehicle that was damaged by another motorist. For example, suppose that your new Toyota Prius gets sideswiped. The liable driver’s insurance company accepts that you were not at fault and thus compensates you $30 a day for a rental car. The thing is, an equivalent Prius may rent $50 a day. In this case, the insurance company should allow you $50 a day. Period.
Let’s explore another situation: let’s say you plan to take public transportation while your car is in the shop and thus opt not to get a rental vehicle. This is fine – the choice is yours to make. Since your car repairs will take six weeks (a total of 42 days), you are entitled to $2,100. In other words, even if you decide not to rent a vehicle, you are still entitled to monetary compensation for your loss of use.
The law which covers this subject is CACI 3903M: “To recover damages for loss of use, [name of plaintiff] must prove the reasonable cost to rent a similar [item of personal property] for the amount of time reasonably necessary to repair or replace the [item of personal property].”
At Wilshire Law Firm, our experienced auto accident attorneys can answer questions about any aspect of your insurance claim. Feel free to give us a ring at (800) 522-7274. We will provide you with a comprehensive understanding of your rights and best legal options in a FREE consultation. Don’t delay – contact us today for immediate assistance.