When your vehicle is out of service after an accident someone else caused, the at-fault driver's insurer is generally responsible for a reasonable replacement, either a rental vehicle or payment for the time you were without one.
Being without a vehicle is one of the most disruptive parts of a property damage claim. The cost of that disruption is called loss of use. How it is handled depends mostly on whose insurance is paying the claim.
Third-Party Claims: The At-Fault Driver's Insurer
When another driver causes the accident, their liability insurance is generally responsible for your loss of use for a reasonable period. In practice, that usually means:
- A rental vehicle comparable to yours, often billed directly to the insurer
- Coverage for the reasonable time needed to repair the vehicle, or to replace it if it is totaled
- In some states, payment for loss of use even if you did not rent a vehicle
Rental coverage on a third-party claim typically begins once the insurer accepts liability. If liability is still under investigation, you may need to use your own coverage in the meantime.
First-Party Claims: Your Own Rental Coverage
If you file through your own policy, rental reimbursement coverage, if you have it, pays for a rental up to a daily limit and a maximum number of days or dollars. Without that optional coverage, your own policy usually does not pay for a rental.
| Coverage | Typical structure |
| Rental reimbursement (your policy) | A daily limit and a total limit, such as a set amount per day up to a maximum |
| Loss of use (at-fault insurer) | Reasonable rental of a comparable vehicle for a reasonable time |
How Long Rental Coverage Lasts
- Repairs: generally through the reasonable repair period, which can be extended by parts delays or supplements
- Total loss: often until a few days after the settlement offer, giving you time to find a replacement
- Delays you control: insurers may limit coverage if the vehicle is not taken for repairs promptly or settlement paperwork is delayed
Total Losses and Rental Deadlines
On a total loss, rental coverage often ends shortly after the settlement offer, even if you are still reviewing the valuation. Ask the adjuster exactly when rental coverage ends, and review your valuation promptly.
See how long a total loss claim takes and how insurers determine actual cash value.
Tips for Rental and Loss of Use Claims
1 Ask for a comparable vehicle
On a third-party claim, you are generally entitled to a vehicle similar to yours, such as a truck for a truck.
2 Confirm billing in writing
Find out whether the insurer will bill the rental company directly and what daily rate it has approved.
3 Keep records
Save rental agreements, receipts, and correspondence about rental approvals and end dates.
4 Ask about loss of use if you did not rent
In some states, you can claim loss of use even if you went without a rental, often based on a reasonable daily rate.
Frequently Asked Questions
Does the at-fault driver's insurance have to pay for a rental?
Generally, the at-fault driver's liability insurance is responsible for your reasonable loss of use, which commonly takes the form of a rental vehicle. The specifics vary by state and by the circumstances of the claim.
Can I get a rental before fault is decided?
You can use your own rental reimbursement coverage, if you have it. The at-fault insurer usually begins paying once it accepts liability.
Can I claim loss of use if I did not rent a car?
In some states, yes. Ask the at-fault driver's insurer whether it will pay loss of use for the days you were without a vehicle.
Need Help Determining What Your Vehicle Is Worth?
Premier Vehicle Valuation Specialists provides independent, market-based vehicle valuations for diminished value and total loss claims, including appraisal clause representation and umpire services.
We review the available claim information first. If an appraisal is unlikely to add value, we will tell you.
This article provides general information about vehicle property damage claims and is not legal or tax advice. Insurance requirements, claim procedures, and available remedies vary by state, policy, and individual circumstances.
