Are Insurance Companies Required to Pay for a Car Rental in Total Loss Claims?

Filed under: Rental Car in New Zealand - 29 Mar 2010  | Spread the word !

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If you are involved in an accident that results in a total loss of your car, you may have to rent a car to use until you can replace your own car. The question, “are insurance companies required to pay for a rental car in total loss claims?” will come up in that situation. The answer will depend upon several factors, including the state or country the accident happens in, the terms of your insurance policy, and the terms of the insurance policy of the other driver.

In a case Where the other driver is at fault, that driver’s insurance should pick up the cost of your car rental until they settle the claim for you to be able to replace your car. If you are at fault, or if you live in a “no-fault” auto insurance state, then the terms of your insurance policy or state law will determine whether you will be reimbursed for car rental. Some states require all auto insurance policies to include rental car reimbursement, while others do not.

If fault in the accident is not immediately acknowledged by either party, you may have to pay for temporary car rental fees out of your own pocket and seek reimbursement from the responsible insurance company as the case is settled. The best thing to do is to plan in advance and hope you never need to take advantage of your planning. Call your insurance agent and ask if your policy, or your state law, provides payment for a rental car if your car is damaged in an accident. If you currently do not have that coverage, then you can get a special rider added to your policy. You should also be sure your uninsured motorist coverage includes rental car reimbursement in the event the other driver is at fault, but has no insurance.

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Don’t Sign a Rental Car Damage Agreement Without Reading It

Filed under: Rental Car in New Zealand - 18 Mar 2010  | Spread the word !

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Welcome to New Zealand! While driving your rental car “down under” there is lot of things to do and see. There is nothing more refreshing than going into the Outback and taking a look at nature for all its worth. You may also want to take a little time out in your New Zealand car rental and go out for a nice juicy steak. New Zealand is well-known for their thick beef and kangaroo steaks so make sure that you are hungry. Before you go out and have too much fun in your rental car make sure that you read the damage agreement.

The damage agreement that you are signing for your rental car is very important. You want to make sure that you understand every single detail of it. Why? Because you may not be as safe as you think that you are. Not all car damage agreements are created equally. Most car rental companies will give you 2 options. You can have the option of liability damage or full coverage. If you are smart you should grab the second option. Even though it make cost you more money, the second option is usually a “care-free” plan which means that no matter what happens to the vehicle they will take care of it 100%.

If you just pay for liability only you are responsible for anything that happens to the vehicle while it is in your custody. That means that if you hit someone, you have to take care of it out of your insurance. They will only pay for the damage that is caused by another vehicle to you and then again, it really depends on how much damage is in the agreement. Don’t be surprised if you have to pay a deductible. You should always read the damage agreement and it is doubly important to read it thoroughly if you do not get the “care-free” plan. What you don’t know may hurt you in the end if something happens to the rental vehicle.

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