QuestionDear Sir,
I live in Michigan and met with an accident recently. I am sure that its not my fault and other drivers fault (Waiting for Police Report).
Meanwhile I am having tough to commute, so I checked with my insurance company and they mentioned that I dont have Rental Reimbursement covered. I asked if the other persons insurane can reimburse my rental, my insurance company mentioned that they can only if accident happens while parking and not in motion.
Can you please let me know if there is way to get the rental car until my car is repaired or I got paid for totalled.
Your help is highly appreciated. Thanks in advance.
AnswerHi Bachi,
Here are the basic RENTAL CAR RULES—REPAIR vs. TOTALED VEHICLE. I will discuss both, since you have not mentioned whether or not the car will be repaired or totaled.
Which company has to pay for a rental vehicle? It is the duty of the tortfeasor, or, if you purchased Rental Reimbursement coverage on your own insurance, then they will cover a rental, but usually there is a cap on the daily charge. By the way, Towing/Rental car coverage is highly recommended first party coverage for each insured to add to her policy ASAP. It is inexpensive coverage and a darn good investment that pays enormous dividends if you should ever need it.
How do I get a rental car while my vehicle is being repaired?
The tortfeasor's carrier has to provide you a rental car for the whole time you are without a car, but your own first party carrier is under no such obligation unless you purchased rental insurance or unless the claim is for Underinsured Motorist (UIM) coverage.
Work with the auto collision repair shop owner and the insurance adjuster to get a rental car for the time your car is being repaired. The insurance company may be able to lower their costs through arranging on a fleet rental basis, and that should turn out to be satisfactory for you, assuming the transportation is satisfactory.
If you elect to go without a rental car, but you are entitled to one from the tortfeasor's insurance, you should demand that the company pay you a per diem cash allowance equivalent to what it would cost them to provide you a rental car.
Whoever is repairing or totaling your car HAS A DUTY TO PUT YOU IN REPLACEMENT TRANSPORTATION. Tell him that IN WRITING ONLY, and let him solve the problem of getting a car for you. What I have seen in the past is that an insurance adjuster will just arrange with the auto body shop to rent one of their vehicles.
There are two kinds of rules for replacement transportation, depending upon whether or not the car is to be repaired or totaled.
The tortfeasor has to provide a rental vehicle for only a reasonable time to allow for repair of the vehicle or for a reasonable time after a fair offer to total the vehicle has been made.
REPAIRED VEHICLE. We do not yet know if this is YOUR CASE, but I give this rule just for your information. If the vehicle is going to be repaired, the shop will often just arrange for the rental via authority given by the adjuster. The authority will encompass all of the time the vehicle will be in the shop. Extensions of time are common when parts or repairs take longer than first thought. In general, if you are entitled to a rental car at the outset, it should continue through the repair process, including “REASONABLE” delays for parts. These delays would be within the ambit of what we call the consequential damages of the tortfeasor's negligence.
TOTALED VEHICLE. Perhaps this could be YOUR CASE. Rental allowances are due for a reasonable time after a fair offer to purchase has been made.
The first issue to be decided is whether or not the adjuster has made a good faith offer. Although his offer may not be what you think is full value, IT COULD BE WITHIN THE BALLPARK OF A “FAIR” OFFER for the total value of the vehicle.
Thus, the rental allowance starts to run from the time he gave you that offer. Most adjusters will give a few days after the offer to present data and negotiate something higher, plus time to get the agreed settlement check written and to buy new transportation.
Thus, one week of rental allowance beyond the date he made the offer is probably the industry standard for rental allowance. That would give the victim time to settle, to get the check, and to buy new transportation.
You are NOT ALLOWED more than one week since the victim is expected to make his counter offer and to settle within two or three days and then get the check and buy a car within the remaining four or five days. The victim should already have all of his evidence to present for negotiations. You are not allowed to think about it or to go and take a week getting evidence of higher prices back to the adjuster. That is work that you are expected to have completed by the time he make his offer.
WHAT QUALITY AND SIZE RENTAL CAR DO YOU GET?
You should have the right to obtain ”LIKE” transportation. That does NOT mean your temporary replacement vehicle will be the same as your damaged vehicle. But at least your replacement should be in the same class in terms of size or specialized use (i.e. truck or van) as your own vehicle.
For example, lets say that you drive a four door Cadillac. If they offer you a Chevrolet Impala, that would be deemed satisfactory replacement. But a compact car would not qualify since it is clearly not the size or luxury of your Cadillac.
For additional information on rental cars and other topics dealing with auto body repair shops and insurance adjusters, please see: Auto Accident Rental Car Replacement Insurance Payment http://www.settlementcentral.com/page0456.htm
Final Topic: Communicate in Writing—“DEMAND”, Don’t ASK
Effective communication with insurance claims adjusters. Establish Firm, Professional, and Positive Relationships With the Insurance Injury Claims Adjuster http://www.settlementcentral.com/page0059.htm
Always communicate with the adjuster in writing, showing your own analysis of value. It is OK I guess to have one call or so, but no more. Always have your information and ammunition in writing to give to the adjuster.
Let him know that you are FIRM IN YOUR RESOLVE to get what you are demanding (NOT "asking", since that invites a counter-offer, but instead "demanding" as fair and reasonable compensation) by asking him what the options are to resolve the matter fairly should he not agree to a reasonable claim value. In other words, let him know that you will go through with a court filing if need be.
Remember these tips, do your homework, print out your evidence, show resolve to get your fair settlement, and you will DO JUST FINE.
I trust that my extra time here has produced some information that has been of value to you, and thus I would respectfully request that you take the time to locate the FEEDBACK FORM on this site and leave some feedback for me.
Best Wishes,
Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com
