After an accident, one of the most common questions drivers in the United States ask is, “Will the at-fault driver’s insurance pay for my rental car?” The short answer is yes, in most cases, the at-fault driver’s insurance should cover your rental car costs while your vehicle is being repaired. However, there are conditions and timelines involved that every driver should understand.
When another driver causes the accident, their liability insurance typically covers your car repairs, medical bills, and rental expenses. But the process is not always quick or straightforward. Sometimes, the at-fault driver’s insurance may delay payment until they confirm fault through an investigation. If that happens, you may need to use your own insurance first and get reimbursed later.
According to the Insurance Information Institute, about 87 percent of U.S. drivers carry liability insurance, which includes property damage coverage to pay for the other driver’s vehicle and rental car when they are at fault. The coverage usually continues until your car is repaired or until the insurer pays you the total loss value if your car is deemed unrepairable.
This article explains in simple terms how rental car coverage works after an accident, when the at-fault driver’s insurance pays for it, and what to do if they refuse or delay payment. You’ll also learn practical steps to get a rental faster, avoid common claim mistakes, and make sure you don’t end up paying out of pocket.
What Happens After an Accident and Who Pays for the Rental
After a car accident, determining who is at fault is the first step before insurance companies begin paying for damages or rentals.
Here’s a quick overview:
| Step | What Happens | Who Pays |
| 1 | Accident occurs | Depends on fault |
| 2 | Police report filed | Used to confirm liability |
| 3 | Fault determined | At-fault driver’s insurance becomes responsible |
| 4 | Repair estimate prepared | Insurer approves repair shop |
| 5 | Rental car provided | Paid by at-fault driver’s insurer or your policy if waiting for claim |
If the other driver admits fault and their insurance company accepts responsibility, they will directly pay for your rental car costs. If the investigation takes time, you can use your own rental reimbursement coverage (if you have it) to get a car immediately.
When the At-Fault Driver’s Insurance Covers Your Rental Car
You are eligible for a rental car paid by the at-fault driver’s insurance when:
- The other driver is clearly responsible for the accident.
- The insurance company accepts liability after reviewing reports.
- Your vehicle is being repaired in a certified shop.
- You need transportation during the repair period or claim processing.
The at-fault driver’s property damage liability coverage includes payment for:
- Rental car charges until your vehicle is fixed.
- Rental costs up to a daily and total limit.
- Reasonable vehicle type comparable to your damaged car.
For example:
If your sedan is being repaired for five days, and the at-fault driver’s policy covers up to $40 per day for a rental, you can rent a similar-sized vehicle, and the insurer will pay directly or reimburse you later.
When the At-Fault Driver’s Insurance Does Not Cover Your Rental
There are times when the at-fault driver’s insurance might not pay for your rental car immediately or at all:
- Fault is still under investigation.
- Insurance companies often need the police report before accepting responsibility.
- Insurance companies often need the police report before accepting responsibility.
- The at-fault driver’s policy limits are exhausted.
- If their liability coverage runs out, you may have to claim under your own insurance.
- If their liability coverage runs out, you may have to claim under your own insurance.
- They have no insurance.
- If the other driver is uninsured, your uninsured motorist coverage may apply.
- If the other driver is uninsured, your uninsured motorist coverage may apply.
- Disputes about fault.
- If both drivers are partially at fault, the insurer may only pay a percentage of the rental costs.
- If both drivers are partially at fault, the insurer may only pay a percentage of the rental costs.
- Unreasonable rental choice.
- Choosing a luxury car instead of a standard rental may exceed coverage limits.
- Choosing a luxury car instead of a standard rental may exceed coverage limits.
In such cases, having your own rental reimbursement coverage in your policy helps you stay mobile while your insurer deals with the at-fault party.
How to File for Rental Reimbursement
If your vehicle needs repair after an accident and you’re not at fault, follow these steps to ensure smooth reimbursement:
- Collect essential documents: police report, photos of the accident, and repair estimates.
- Contact the at-fault driver’s insurer and provide claim details.
- Ask for a rental authorization before renting the car.
- Keep all receipts and rental agreements.
- Submit claim forms as required by the insurer.
If you must pay upfront, keep copies of every receipt. Once the insurer verifies fault, they will reimburse you for rental charges within the allowed limits.
Average Rental Car Coverage Duration and Limits
Most insurance companies cover rentals only for a reasonable repair period, usually up to 30 days. The daily rate can range between $30 to $50, depending on the insurer and the policy type.
| Company | Daily Limit | Maximum Limit | Typical Duration |
| State Farm | $25 – $50 | Up to $900 | 30 days |
| GEICO | $30 – $50 | Up to $1,200 | 30 days |
| Progressive | $40 | Up to $1,200 | 30 days |
| Allstate | $30 – $50 | Up to $1,500 | 30 days |
If your car is totaled, coverage continues until you receive the settlement check or buy a replacement vehicle.
For a detailed breakdown of rental time limits, see How Long Will Insurance Pay for a Rental Car During Repairs.
How Long Can You Keep the Rental Car?
You can keep the rental car until:
- Your vehicle is fully repaired and returned.
- The insurer declares your car a total loss.
- The rental coverage period ends, as stated in the policy.
If the repair shop faces parts delays, contact the insurer for an extension. Document all communication to avoid disputes later.
What If the At-Fault Driver’s Insurance Delays Payment
Delays are common when insurers are verifying liability. In that situation:
- Use your own rental reimbursement coverage if you have it.
- Ask your insurer to handle recovery from the at-fault driver’s insurer.
- File a reimbursement claim later once the fault is confirmed.
Your insurance company can later recover the rental costs from the other insurer through subrogation. This way, you get transportation immediately without waiting for their investigation to finish.
What to Do If the At-Fault Driver Is Uninsured
If the at-fault driver has no insurance, your uninsured motorist property damage (UMPD) or collision coverage may help pay for your rental. These coverages are optional in some states but extremely helpful in such situations.
You may also file a claim with your own insurer and let them pursue recovery through legal channels.
Alternatives if Your Claim Is Denied
If the at-fault driver’s insurance denies your rental claim, here are practical steps you can take:
- Contact your own insurance provider to use rental reimbursement coverage.
- Check if your credit card company offers rental protection benefits.
- Seek reimbursement later once fault determination changes.
- File a complaint with your state’s insurance department if you face unfair denial.
Each state has a Department of Insurance where you can report delays or denials. For example, the California Department of Insurance allows consumers to file complaints directly online.
Common Mistakes to Avoid
- Failing to get the claim number early. Always confirm claim details before renting.
- Choosing an expensive rental without authorization. Stay within allowed vehicle class.
- Not submitting receipts promptly. Insurers need full documentation for reimbursement.
- Delaying rental return. Late returns beyond the approved period are your responsibility.
Avoiding these mistakes ensures smooth claim approval and faster payment.
Tips to Get a Rental Car Faster
- Choose a rental partner approved by your insurer to skip paperwork delays.
- File the claim immediately after the accident.
- Provide all documents including photos and police reports.
- Keep direct contact with your adjuster for faster authorization.
- Opt for an economical vehicle similar to your car model.
Acting fast can save several days of waiting for claim approval.
Cost Comparison: Paying Yourself vs. Insurance
| Expense Type | Paid by You | Paid by At-Fault Driver’s Insurance |
| Rental Car (daily) | $30–$70 | $0 (if covered) |
| Deposit Fee | $100–$300 | Refunded after payment |
| Fuel | Your responsibility | Usually yours |
| Late Return | Yes | Not covered |
| Upgraded Vehicle | Yes | Not covered |
The key is to rent within reasonable limits to ensure full reimbursement.
Example Scenario
Scenario 1:
You were rear-ended by another driver who admitted fault. Their insurer accepted liability and paid your rental charges for seven days while your bumper was repaired.
Scenario 2:
The other driver denied fault, and the insurer delayed payment. You used your own rental coverage, got reimbursed later once liability was confirmed.
Scenario 3:
The at-fault driver was uninsured. Your uninsured motorist coverage covered your car repair but not rental costs because your policy didn’t include rental reimbursement.
These examples show why checking your coverage details before an accident is always beneficial.
FAQ Section
Yes, but only if they accept liability and your vehicle is not drivable or is in repair.
Usually until repairs are complete or for up to 30 days.
You can rent a car similar in type to your damaged vehicle. Luxury upgrades may not be covered.
You can use your own rental reimbursement coverage and claim reimbursement later.
You can keep the rental until your claim is settled or you receive the payout check.
Yes, if the at-fault insurer later accepts fault and you provide valid receipts.
Final Thoughts
If you’re not at fault in an accident, the at-fault driver’s insurance should usually cover your rental car expenses. But since insurance companies may take time to confirm liability, having your own rental reimbursement coverage helps you stay mobile without waiting. Always document your claim carefully and communicate with both insurers for a smooth process.
For U.S. drivers who want to compare policies that include rental car coverage, liability protection, and full repair benefits, visit Alias Insurance is the trusted platform that helps you find and compare affordable car insurance quotes from top providers nationwide.
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- Does Car Insurance Cover Accidents on Private Property
- How to Deal with an Insurance Adjuster After a Car Accident
