Is your insurance company refusing to pay for a rental car? Don’t know what to do in such a situation? Well, then, this blog will help you.
Car insurance can protect your injuries from various vehicle damages and losses from an accident. But what to do if your insurance company refuses to pay?
In the following article, we will discuss rental car insurance and what to do if the insurance company refuses to pay for the rental car. Keep reading till the end.
What is Meant by Rental Car Insurance?
Rental insurance is the protection you ought to purchase from a rental agency. It ensures that while driving from one destination to another, your rental car is well taken care of by insurance coverage if something happens.
In other words, it works as an assurance if you need to cover your rental costs for any car repair after a crash. Besides, you can even get coverage to safeguard your passengers, vehicles, possessions, and self.
Plus, it will pay for various wounds and property damages caused by third parties. These rental companies ensure that each vehicle is insured, with your money going straight into the general fund. Therefore, if you pay extra for more alternatives, they will not attempt to compensate for your losses.
4 Types of Rental Car Insurance in Canada
Here is a list of the four kinds of rental car insurance options available in Canada for the protection of your vehicle, personal possessions, and third-party liabilities:
1. Collision damage waiver (CDW)
Also known as loss damage waiver. With this kind of insurance, you remain shielded from any kind of accident or theft-related expenses.
So, by agreeing to the terms and conditions of the contract, you pay the business to give up the right to sue you for the losses. There are several insurance or credit cards available. Having one will give you an upper hand in any incident.
2. Liability Insurance (LI)
Liability insurance means that you will remain protected from any responsibility during a crash. You will still get coverage even if you are accountable for causing harm to a car or property.
From paying for the damage to the car to medical expenses for anyone hurt, this liability insurance takes care of everything. This is mandatory unless your insurance covers you for between $1 and $2 million in liability and has OPCF 27, which is needed to safeguard you in Canada.
This is ideal insurance for those who frequently travel here and there. Adding this to your list will be less expensive than having to rent a car each time.
3. Personal Accident Insurance (PAI)
This insurance covers accidental death for the driver and any passengers in the event of an accident. Although it may seem unnecessary, having none can be quite dangerous.
4. Personal Effects Coverage (PEC)
Personal effects coverage offers protection for all your possession within the car. There is frequently a stated limit and a deductible that must be met.
For instance, if you have home insurance, it’s unnecessary. But if you don’t, it is still advised to buy it, as having one will ensure you don’t risk losing anything worth $500 or less.
Do I Need Rental Car Insurance in Canada?
Of course, you need rental car insurance in Canada. With the help of this insurance, you and your vehicle will stay protected. Thus, you can have peace of mind whenever you rent a vehicle.
On the contrary, you will be held responsible for any additional damages incurred while taking out. Meaning all payments will have to be made from your pocket.
It is easy to get car insurance if you don’t own an automobile. Just contact a reliable rental agency or your credit card provider. You will be good to go.
What Should You Do If You Crash a Rental Car?
Once in an accident, while driving a rental car, you should take care of the car as if it’s yours.
One key distinction following a rental automobile accident is that you must tell both your insurance and the rental car company immediately to ensure you have taken additional procedures they may require as a part of their formalities.
Following is a list of the things you must do after a rental car accident to be on the safer side:
- Your first task is to check yourself and other passengers for any physical injuries. If so, visit the doctor right away. And if everyone is safe, collect crucial information that can come in handy later.
- Exchange contact details with the other driver. This may include name, location, licence plate number, insurance company, etc.
- Try to document the scene and take as many pictures of the vehicles, such as the incurred damages. This information can greatly help in making a claim.
- Next up, contact your rental company and let your insurance company know about the crash. So they can help you with making a car insurance claim against the at-fault party.
What to Do When the Insurance Company Refuses to Pay for a Rental Car?
Insurance companies completely deny approving rental automobiles for accident victims, even when the entire fault is of the opposing party. So, what to do in such situations?
Below is a list of things you can do to get out of the situation:
Contact the state insurance division
The situation is more complicated and challenging for those who have only one car involved. Hence, in case of such occurrences, the smartest move is to get in touch with the insurance division in your state as soon as possible.
The entire claiming procedure may take a lot of time to settle. Again, you might have to pay the rental car expenses out of your pocket while waiting for the claim settlement.
However, in some cases, that may be sufficient to convince the insurance provider to agree to cover the cost of your rental car.
Have comprehensive or collision coverage—submit a claim
If you have comprehensive or collision coverage with rental car insurance, submit a claim with your insurance provider.
In addition to paying for your rental automobile, your insurance provider will pursue repayment from the other party’s insurance provider. If they can successfully recover all the money from the at-fault driver’s insurance company, they will pay back whatever deductibles you had to pay.
Employ a lawyer
You can even take legal support by hiring an experienced Lethbridge car accident lawyer to assist you in obtaining all the compensation for your accident-related losses.
From making claims for your lost goods, rental car expenses, and physical injuries—they will simply take care of everything.
Besides, when a lawyer writes a demand letter, the insurance company cannot help but respond. Ignoring will work as a backfire, which they will never want to happen.
And if you receive a settlement offer for your compensation, ensure there are no such clauses stating: “You are renouncing any claims you have for property damage and rental car costs.”
Therefore, it is better to take your lawyer with you whenever there is a talk over the settlement proposal. They can actively help you evaluate its fairness, especially in terms of the law.
That’s all from the detailed discussion regarding the insurance company refusing to pay for a rental car. However, for any further complications, make sure to get legal support as soon as possible. Only an experienced lawyer can help you get out of the situation with proper guidance, ensuring your rightful compensation.
Check out the below frequently asked questions about the topic:
Is it necessary to buy insurance while renting a vehicle?
Of course, it is necessary. Anything can happen while travelling from one route to another route. So, you must have coverage to protect yourself from all the damages.
Otherwise, you will be held solely responsible for any vehicle damage. It can cost you as much as several thousand dollars just for a minor mishap. Therefore, the ideal decision is to buy insurance while renting a vehicle.
How long will insurance last for a rental car after an accident?
There’s no specific answer as it varies from one to another. Most insurance companies allocate a specific sum for rentals. For instance, you might have a restriction of about $2000. Your insurer will inform you about such limits while filing a car insurance claim and renting a vehicle.
Will insurance pay for the rental car during repairs?
Yes, they pay for repairs. The rental cost during an accident-related car repair is covered under rental coverage. Your insurance company provides this coverage comparable to a daily rental. To get the coverage included in your insurance, speak with your agent.
How much is insurance for a rental car?
On average, it will typically cost you $65 per day. However, there is no exact estimation as it tends to vary depending on the kind of insurance and protection level you add.