Rental Car Coverage Period Liability

[acecase]

Hello.

First, thank you for existing. You guys are a very useful community resource.

My wife's car was recently totaled. The person's insurance provider has accepted liability, and they covered a rental for 14 days. However, at this point, the 14 days has passed and she still hasn't received payment. The payment will initially go to Honda, as the lienholder, but it hasn't gone to them at this point either.

How long is the insurance provider liable to provide a rental car? We've been told that it could take up to 30 days for Honda to process their end once the payment has been issued to them, so she is going to be without a vehicle for up to 30 days.

 

[adjusterjack]

The person's insurance provider has accepted liability, and they covered a rental for 14 days. However, at this point, the 14 days has passed and she still hasn't received payment.

Did you ask the claim rep for additional time on the rental? If yes, with what results?
If no, I suggest you do that and then come back with the results.

Understand, however, with a liability claim against the other driver, the insurance company can offer what it believes what its insured is "legally liable" for. If the accident victim believes otherwise, the victim may go to court and attempt to prove additional monetary damages.

Understand, also, that there is a doctrine in negligence law called "mitigation" that prevents an injured party from recovering damages that could have been avoided through reasonable efforts. You don't get to keep the rental beyond the reasonable amount of time that it would take to make other arrangements.

Do you have rental coverage on your own policy? If yes, it's probably for a longer period than just 14 days. If no, then you have to do the best you can with what you've got, unless you want to pay for the continued rental yourself.

Ask yourself this. In the absence of insurance, if your choice was to rent a car for a month at $100 per day (about $3000) or find a less costly method of getting your wife from place to place, which would you choose? That's how mitigation works in court.

 

[acecase]

Thank you for a very detailed response. She has requested to get a rental for a longer period, and they told her that they only cover 14 days.

My wife works in IT, and travels to different campus as part of her job, so I think it is reasonable to have a rental, and I believe we will have to cover one out-of-pocket if they don't. Something like a taxi or public transit isn't an option, and I work in the same field at a different location, so it isn't possible to share my car.

 

[adjusterjack]

One option is to get a cheap, but dependable, car for temporary use then sell it when you are able to get the car that you want.

You didn't answer about rental coverage on your own policy. Do you have it?

 

[InsCommentary]

“She has requested to get a rental for a longer period, and they told her that they only cover 14 days.”

Does the liability coverage in the other person’s policy actually specify a maximum time limit of 14 days? If not, if that policy simply covers legal liability, cutting the coverage off at 14 days sounds unreasonable if the vehicle can’t be repaired or replaced in that amount of time.

 

[acecase]

One option is to get a cheap, but dependable, car for temporary use then sell it when you are able to get the car that you want.

You didn't answer about rental coverage on your own policy. Do you have it?

I'm sorry. I forgot to answer that. It looks like we can get a rental through our policy, but I believe that would be a claim and our rates would go up.

 

[acecase]

“She has requested to get a rental for a longer period, and they told her that they only cover 14 days.”

Does the liability coverage in the other person’s policy actually specify a maximum time limit of 14 days? If not, if that policy simply covers legal liability, cutting the coverage off at 14 days sounds unreasonable if the vehicle can’t be repaired or replaced in that amount of time.

I agree. I know the law isn't always simple logic, but simple logic suggests that they should cover the time until she receives the means to replace the car. I understand that there needs to be a limit to a reasonable amount of time to shop and buy, but before she even gets the money it isn't possible for us to replace the car.

 

[adjusterjack]

I'm sorry. I forgot to answer that. It looks like we can get a rental through our policy, but I believe that would be a claim and our rates would go up.

Your rates will probably go up any way, for a variety of reasons, including a not-at-fault accident, believe it or not. You might as well take the rental car money.

 

[acecase]

Your rates will probably go up any way, for a variety of reasons, including a not-at-fault accident, believe it or not. You might as well take the rental car money.

I truly hate the insurance racket. My wife has a perfect driving record. She's 45 years old, and has never had a ticket or an accident that was her fault. All that, and some guy runs a red light and hits her and our insurance rate will go up? I get it if they had a small margin and they had to really watch the money coming in and out, but they're making money hand over fist in a market that has a mandatory customer base and still leaching us for every little bit they can "justify."

We also have to maintain insurance. Presumably, so that everyone else on the road is financially protected if we cause them damage. I can see the logic in that. However, now we are financially damaged and this company that is supposed to be handling that damage is ok to just say "yeah, we'll take care of part of your damages, but you are going to have to eat some of that."

 

[adjusterjack]

Presumably, so that everyone else on the road is financially protected if we cause them damage.

No, you have insurance so that YOU are financially protected against being sued into oblivion and losing everything you hold dear if you cause somebody else injury or damage.

Everybody feels like you do about insurance and nobody is ever happy with a claim. Nobody is ever "made whole" after a claim. It's a myth.

I spent the last 8 years with one insurance company, no accidents, no tickets, and suddenly my policy went from 1200 per year to 1800 per year, a 50% increase for no other reason than the insurance company has to make more money to pay other peoples' claims while still making a profit.

If your renewal rates are higher than you like, you are free to shop around and change to another insurance company like I did.