Auto Insurance Payments for Rental-Car Use Dependent on Fault

A new FAQ on explains when a driver can expect rental-car fees to be covered by a car insurance company following an accident.

Online PR News – 05-November-2010 – – “How am I going to get around now?” is a question likely to occur to drivers shortly after getting into a serious accident. To help this matter get settled long before an accident happens, the writers at Online Auto Insurance recently explain in a new FAQ the accident details and coverage provisions that may make a policyholder exempt from having to pay the fees for use of a rental car.

The main factor dictating whether car insurance coverage will protect a driver from having to pay for rental-car costs is fault.

All states — including those using no-fault systems — with compulsory auto insurance laws require motorists to carry property damage liability. This is a type of third-party coverage, meaning that how it works is an at-fault policyholder’s carrier pays the not-at-fault party for damages caused by the policyholder. So if a driver’s auto gets damaged and has to be taken in for repairs because of someone else’s driving, the rental car costs will likely be covered by the at-fault party’s carrier.

Meanwhile, if the at-fault motorist’s vehicle has to be taken to the shop for repairs, the cost of a rental will not be covered under a basic, minimum policy. To be protected from having to pay rental fees in this scenario, the motorist needs to have had rental reimbursement coverage — an optional type of protection — added on to a policy.


How much the rental reimbursement provision will pay out is generally decided when the policy is purchased. The limits are usually set as a dollar amount per day that will go toward rental costs for a specified number of days.

To access the full FAQ, readers can go to where they will also be able to learn more about the different types of auto insurance available to consumers.

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