Auto Insurance Payments for Rental-Car Use Dependent on Fault

A new FAQ on OnlineAutoInsurance.com 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.

Source: http://www.ok.gov/oid/FAQ_Consumer_Assistance_.html

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 http://www.onlineautoinsurance.com/coverage/ where they will also be able to learn more about the different types of auto insurance available to consumers.

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