Auto Insurance Claims: Rear Ended a Rental, rental car company, diminished value

Question
I rear ended a rental car 2 months ago, and just received a letter saying that I owe the rental car company over $1,000 for diminished value and loss of use of their rental car.  Even though I have full coverage, they say that my insurance company won't pay this.  

Just to clarify, I was driving my own car and hit someone else's rental car.

I can't see how I can possibly be responsible for this.  Hypothetically, if the rental car had been totaled, how could they charge me for the entire diminished value and complete loss of use of the vehicle?  How do I go about disputing this?  

Answer
Hi Renee,

If they are charging diminished value, then the car was not totaled. When a vehicle is damaged and repaired it will no longer be worth the same as a vehicle with no damage history. In this case they are seeking payment of the diminished value as well as the loss of use.

Your insurance comapny should be handling this. Anytime you receive correspondence related to the claim you shoudl immediately contact your insurance adjuster and send them a copy of the letters you receive. They will then contact the rental company to try to reach a settlement.

I hope this helps
Richard Hixenbaugh