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Auto Insurance Claims/rental reimbursement

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Expert: webfoot - 6/2/2006


Question
I was involved in an auto accident in which I was not at fault. My vehicle was undrivable due to the damage. At what point should the insured's company remiburse for rental coverage? Where can I find their legal responsibility?

Answer
Mark,
I'm sorry to hear that you were in an accident and hope that everyone is ok. I don't have much info to go on here but will answer the question to the best of my ability.

If the vehicle is truly non-drivable then reimbursement for rental should begin immediately.  I have had vehicles reported as non-drivable and then later found no evidence to support that claim and then rental becomes an issue.

You have a basic duty to "mitigate your damages" which essentially means to do whatever is reasonably necessary to minimize the claim expenses.  One example is that renting a car to go to work is mitigating your damages, but claiming a week of lost wages because you have no car is not.  The insurance company owes for transportation, but not necessarily equal transportation unless you can prove a valid business or safety need.  If you drive a Mercedes, they don't owe for a luxury rental, but if you drive a truck for business, then they owe for a truck.  If you drive a mini van and have 5 kids, then rent a mini van as there is obviously a valid reason for it.  I drive an Impala myself and spend my entire day working out of that car, carrying computer equipment, a printer, tools etc.  Therefore a full size car is a business need.  

If your car ends up being deemed a total loss, then do not be surprised if the rental is cut off.  In many states, they only owe rental up until the time that the TL is determined or the repairs are completed.

You may also want to consider the most cost effective means of storing the car until the estimate can be completed.  If it is at a tow yard where they are charging storage, the insurance company may ask you to leave it there or move it to a storage free location such as your home.  This is mitigating damages.

If there is any question on the other company's part as to coverage or liability issues, you may wish to file with your own carrier.  The reason is that if the other company were to deny the claim for any reason, your company would then be taking over and may question charges that result from the delay.  

Good luck and please don't hesitate to contact me with any other questions.  I would also appreciate your feedback.

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webfoot

Expertise

Auto damage, liability, insurance fraud. I am a full time auto insurance adjuster with experience in collision, theft, liability and fraud investigation. I am also an ASE Master Auto Tech and I-Car Collision Platinum certified. My experience includes 15 years in the auto repair industry, a B.S. in Criminal Justice, Law enforcement and auto insurance. ****** NO "PRIVATE" QUESTIONS WILL BE ANSWERED. I HAVE FOUND THAT NEARLY ALL PRIVATE QUESTIONS COME FROM PEOPLE WHO ARE CONSIDERING OR ATTEMPTING TO COMMIT FELONY INSURANCE FRAUD AND I'M NOT HERE TO HELP YOU! ****** I AM HERE TO ANSWER AUTOMOTIVE REPAIR, CLAIMS PROCESS AND SOME SIMPLE LIABILITY QUESTIONS. I CANNOT ADDRESS COMPLEX LIABILITY SCENARIOS WITHOUT HAVING ALL OF THE INFO FROM BOTH SIDES IN FRONT OF ME. QUESTIONS ABOUT PREMIUMS OR HOW INSURANCE IS RATED SHOULD BE ADDRESSED TO YOUR PERSONAL INSURANCE AGENT WHO KNOWS A WHOLE LOT MORE ABOUT YOUR HISTORY THAN I DO. I'VE NEVER SOLD INSURANCE AND DO NOT KNOW IF YOUR INDIVIDUAL INSURANCE RATES WILL GO UP IF YOU MAKE A CLAIM. THOUGH I'VE HANDLED SOME VERY MINOR SOFT TISSUE INJURY SETTLEMENTS, I PREFER NOT TO ANSWER INJURY RELATED QUESTIONS. I'M NO INJURY EXPERT AND I'LL LIKELY SAY SOMETHING TO HURT SOMEONE'S FEELINGS AS I BELIEVE THAT MANY SOFT TISSUE PAIN AND SUFFERING CLAIMS ARE OVER DRAMATIZED. UNLIKE MANY OTHERS, I AM ON THIS FORUM AS A VOLUNTEER WITH NO PRODUCTS OR SERVICES TO SELL AND PROMISE AN UPFRONT ANSWER BASED ON MY EXPERIENCE IN BOTH SIDES OF THE INDUSTRY. IF YOU PROVIDE ME WITH A HONEST VERSION OF EVENTS, I PROMISE A CANDID AND HONEST ANSWER IN RETURN. I CANNOT ADDRESS ALL CLAIM SCENERIOS DUE TO DIFFERING STATE LAWS AND REGULATIONS, BUT WILL DO MY BEST. PLEASE REMEMBER THAT AN HONEST ANSWER MAY BE ONE THAT YOU DON'T LIKE SO IF THAT IS GOING TO BE A PROBLEM, PLEASE DON'T ASK THE QUESTION. LASTLY, I DO NOT ACCEPT RATINGS AS I DON'T DO THIS FOR RATINGS AND WISH TO SPEAK FREELY.

Experience

20 years in automotive industry, Currently in insurance claims, worked actively as technician and shop owner until about 10 years ago. Current ASE Master Auto Tech and I-Car Platinum Collision Certifications, B.S. Criminal Justice and 10 year auto insurance/extended warranty background

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