Who Pays for a Rental Car After an Accident?
If another driver caused the crash, that driver’s liability insurance should pay for a reasonable rental car while yours is repaired—this is called loss of use. If you carry rental reimbursement coverage, your own insurer can provide a rental up to your policy limit and then seek repayment from the at-fault insurer. In a total loss, rental coverage generally continues until you receive a fair settlement offer.
When the other driver is at fault
The at-fault driver’s property-damage liability coverage owes you a comparable rental while your vehicle is repaired. Insurers sometimes delay accepting fault; if you have rental coverage of your own, use it right away and let the insurers sort out reimbursement so you are not left without transportation.
When your car is a total loss
If the vehicle is totaled, rental coverage typically continues for a reasonable time until the insurer makes a fair settlement offer—not indefinitely. Keep the rental reasonable in class and cost; an insurer only owes a comparable vehicle, not an upgrade.
What if you don’t have rental coverage?
You can still recover rental costs from the at-fault driver’s insurer as part of your damages, but you may have to pay up front and be reimbursed. Save all receipts. A dispute over loss-of-use is one of many reasons it helps to have a lawyer handle the property-damage and injury claim together.
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Quick Reference
| Situation | Who pays |
|---|---|
| Other driver at fault, car repairable | At-fault driver’s property-damage liability (loss of use) |
| Your car is a total loss | Rental until a fair settlement offer |
| You have rental reimbursement coverage | Your insurer, then seeks reimbursement |
Frequently Asked Questions
Does the at-fault driver’s insurance pay for my rental car?
Yes. The at-fault driver’s property-damage liability coverage owes you a comparable rental (loss of use) while your car is repaired, or for a reasonable time until a fair total-loss settlement.
How long can I keep a rental car after an accident?
Until your car is repaired, or—if it’s a total loss—for a reasonable time until the insurer makes a fair settlement offer. It is not open-ended, so keep costs reasonable.
What if I don’t have rental reimbursement coverage?
You can recover rental costs from the at-fault driver’s insurer as part of your claim, though you may need to pay up front and be reimbursed. Keep all receipts.
Written & legally reviewed by Compass Law Group partners
Joseph Shirazi
Managing Partner, Compass Law Group, LLP
California State Bar #265403 · Loyola Law School, J.D.
Joseph Shirazi is the Managing Partner of Compass Law Group, LLP, leading the firm’s personal-injury, catastrophic-injury, and wrongful-death trial practice. He authored the analysis on this page.
Profiles: Avvo · Super Lawyers · Justia · LinkedIn · CA State Bar · Full Bio →
Simon Esfandi
Partner & Co-Founder, Compass Law Group, LLP
California State Bar #275307 · Loyola Law School, J.D.
Simon Esfandi is a Partner and Co-Founder of Compass Law Group, LLP. He reviewed this page for legal accuracy. Compass represents California injury victims on a No Win, No Fee basis.
Profiles: Avvo · Super Lawyers · Justia · LinkedIn · CA State Bar · Full Bio →
Past results do not guarantee future outcomes. This article is legal information, not legal advice.
Injured and not sure what your claim is worth?
Get a Free ConsultationNo Win, No Fee · (213) 320-1001
