Who Pays for My Rental Car After an Accident?

Your car is out of commission. It’s sitting at a tow yard or a body shop in Tacoma, and you’re suddenly left without a way to get to work, take your kids to school, or run essential errands. Life doesn’t stop after a car accident, and your immediate, practical problem is transportation. You need a rental car, and you need it now. But who is supposed to pay for it?

This is a common point of confusion for accident victims. Do you have to pay out-of-pocket? Does the other driver’s insurance cover it? What about your own policy? The answer depends on the specifics of the accident and the type of insurance coverage you—and the other driver—have.

Understanding your options before you start making calls will save you time, money, and frustration. This guide will break down the three primary ways to get your rental car expenses covered.

Useful Information for You: In a Nutshell

• Option 1: The At-Fault Driver’s Insurance: If the other driver was clearly at fault, their property damage liability insurance is responsible for paying for a “comparable” rental vehicle while yours is being repaired. This is called a “loss of use” claim.
• Option 2: Your Own Insurance Policy: If you have “rental reimbursement” coverage on your own policy, you can use it to get a rental car quickly, regardless of who was at fault.¹ This is often the fastest option.
• Coverage Has Limits: Both types of coverage have daily and total maximum limits (e.g., $30 per day, up to $900 total). Be aware of these limits to avoid surprise costs.
• You Must Mitigate Damages: You are expected to rent a car promptly and not delay the repair process. The insurance company will only pay for a “reasonable” rental period.

Path 1: The At-Fault Driver’s Insurance (A “Loss of Use” Claim)

If the other driver was clearly at fault for the accident, their insurance company is legally responsible for covering your “loss of use” damages.² This includes the reasonable cost of a rental car for the time your vehicle is undrivable and being repaired.

How it Works:

1. Liability Must Be Accepted: The other driver’s insurer must first complete their investigation and formally accept liability for the accident. This can sometimes take several days or even longer.
2. Request a Rental: Once they accept fault, you can request that they set up a direct billing arrangement with a rental car company.
3. Get a “Comparable” Vehicle: They are generally required to provide you with a rental that is “reasonably comparable” to your own vehicle. If you drive a 7-passenger SUV, they should not put you in a 2-door compact car.

Pros: You have no out-of-pocket costs and don’t have to pay a deductible.

Cons: This can be slow. Waiting for the other insurer to accept liability can leave you without transportation for days. They may also be difficult to deal with and try to limit the rental period.

Path 2: Your Own “Rental Reimbursement” Coverage

This is an optional coverage you can add to your own auto insurance policy.³ It is relatively inexpensive and one of the most valuable add-ons you can have.

How it Works:

1. Open a Claim: When you report the accident to your own insurer, tell them you have rental reimbursement coverage and need to use it.
2. Get Your Rental Immediately: You don’t have to wait for a fault determination. Your insurer will authorize you to get a rental car right away.
3. Understand Your Limits: Your policy will have a daily limit (e.g., $40/day) and a total limit (e.g., $1,200).⁴ You are responsible for any costs that exceed these limits.
4. Your Insurer Gets Reimbursed (Subrogation): If the other driver is later found to be at fault, your insurance company will seek reimbursement from their insurer for the money they paid for your rental.⁵
   
    

Pros: It’s the fastest and most hassle-free way to get back on the road.

Cons: You must have purchased this specific coverage before the accident occurred.

What if I Don’t Have Rental Coverage and the Other Insurer is Slow?

If you don’t have rental reimbursement on your policy and are waiting for the other driver’s insurer to accept liability, you may be in a tough spot. In this case, you may have to pay for a rental car out-of-pocket. If you do, you must:

• Keep all receipts.
• Rent a reasonably priced, comparable vehicle.
• Submit your receipts to the at-fault driver’s insurance company for reimbursement once they accept liability.

This is the least ideal option, as it puts the financial burden on you upfront and reimbursement can be a slow process.

Navigating the details of property damage claims, including loss of use, can be frustrating. An experienced attorney can not only manage your injury claim but can also pressure a slow-moving insurance company to do the right thing and cover your rental car expenses promptly.⁶

If you’ve been in an accident in the Tacoma area and are struggling to get the compensation you need, search the Car Accident Lawyer Directory Tacoma. Compare profiles and read real client reviews to find a trusted professional who will fight for all aspects of your claim.

References

• Washington State Office of the Insurance Commissioner (OIC) – Rental reimbursement coverage:Official guidance for Washington consumers explaining what rental reimbursement coverage is and how it works.https://www.insurance.wa.gov/what-rental-reimbursement-coverage
• Washington Administrative Code (WAC 284-30-390) – Unfair property/casualty claims settlement practices:The official state regulations that require insurers to handle claims, including loss of use, fairly and promptly.https://app.leg.wa.gov/WAC/default.aspx?cite=284-30-390