Auto Insurance Claims: rental reimbursement, tow yard, rental coverage

Question
I was involved in an auto accident in which I was not at fault. My vehicle was undrivable due to the damage. At what point should the insured's company remiburse for rental coverage? Where can I find their legal responsibility?

Answer
Mark,
I'm sorry to hear that you were in an accident and hope that everyone is ok. I don't have much info to go on here but will answer the question to the best of my ability.

If the vehicle is truly non-drivable then reimbursement for rental should begin immediately.  I have had vehicles reported as non-drivable and then later found no evidence to support that claim and then rental becomes an issue.

You have a basic duty to "mitigate your damages" which essentially means to do whatever is reasonably necessary to minimize the claim expenses.  One example is that renting a car to go to work is mitigating your damages, but claiming a week of lost wages because you have no car is not.  The insurance company owes for transportation, but not necessarily equal transportation unless you can prove a valid business or safety need.  If you drive a Mercedes, they don't owe for a luxury rental, but if you drive a truck for business, then they owe for a truck.  If you drive a mini van and have 5 kids, then rent a mini van as there is obviously a valid reason for it.  I drive an Impala myself and spend my entire day working out of that car, carrying computer equipment, a printer, tools etc.  Therefore a full size car is a business need.  

If your car ends up being deemed a total loss, then do not be surprised if the rental is cut off.  In many states, they only owe rental up until the time that the TL is determined or the repairs are completed.

You may also want to consider the most cost effective means of storing the car until the estimate can be completed.  If it is at a tow yard where they are charging storage, the insurance company may ask you to leave it there or move it to a storage free location such as your home.  This is mitigating damages.

If there is any question on the other company's part as to coverage or liability issues, you may wish to file with your own carrier.  The reason is that if the other company were to deny the claim for any reason, your company would then be taking over and may question charges that result from the delay.  

Good luck and please don't hesitate to contact me with any other questions.  I would also appreciate your feedback.