Rental Car Coverage Period Liability

[ICACharleston]

[QUOTE=" nobody is ever happy with a claim. Nobody is ever "made whole" after a claim. It's a myth.[/QUOTE]

USAA made us happy twice. My wife totaled 2 cars in a year. They paid more than we expected for a 10 year old Infinity and more than we paid for th Honda Fit to replace the Infinity. Rates only went up after the Honda.

 

[Policy Monkey]

Did the adjuster send any policy language supporting the 14 day max? I ask because, at least in Florida, "rental reimbursement" is covered up to 30 days. That doesen't mean you will get the full 30 days, but I feel they should at least cover you until they do their part (i.e. cut the check).

 

[adjusterjack]

Did the adjuster send any policy language supporting the 14 day max? I ask because, at least in Florida, "rental reimbursement" is covered up to 30 days. That doesen't mean you will get the full 30 days, but I feel they should at least cover you until they do their part (i.e. cut the check).

This thread is about a third party liability claim against an at-fault driver. The only policy language supporting the 14 day limit proffered by the adjuster is the liability insuring agreement to pay all sums that his insured becomes legally liable to pay.

Your comment about "rental reimbursement" applies to a first party claim on the OP's own policy. OP has already stated that he has such coverage on his policy.

Please pay attention.

 

[Policy Monkey]

This thread is about a third party liability claim against an at-fault driver. The only policy language supporting the 14 day limit proffered by the adjuster is the liability insuring agreement to pay all sums that his insured becomes legally liable to pay.

Your comment about "rental reimbursement" applies to a first party claim on the OP's own policy. OP has already stated that he has such coverage on his policy.

Please pay attention.

You are correct that the 1st party "Rental Reimbursement" does not apply, as it is not a 1st party claim. But I was asking if the 14 day limit came from some kind of policy language. If not, then where did it come from?

 

[adjusterjack]

But I was asking if the 14 day limit came from some kind of policy language. If not, then where did it come from?

The number of days that a rental car is allowed by the liability carrier depends on when the claim is filed and when the damages are determined. Could be less than 14 days, could be more. 14 just happens to be the number under discussion.

Example: Claim is filed. Claim rep accepts liability on behalf of his insured and agrees to pay for the damage and authorizes a rental. Car goes into the shop. Car is reparable. Adjuster authorizes repairs. Rental stops when repairs are done. Could be less or more than 14 days depending on the amount of damage.

Example: Claim is filed. Claim rep accepts liability on behalf of his insured and agrees to pay for the damage and authorizes a rental. Car goes into the shop. Car is unrepairable and is a total loss. Adjuster determines the ACV to pay the claimant, calls the claimant, advises of the amount, claimant must send in title and turn in the rental car.

In the OP's case this process may have taken 14 days and that's all the adjuster will allow on the rental. With other claims it could take less than 14 days, sometimes more.

It's common practice of the insurance industry to cut off the car rental at time of settlement. Otherwise, claimants will be driving around on the insurance company's rental money while thinking about what to do about the settlement. The insurance industry says take all the time you want but you pay for your own car rental while you think about it.

Harsh, I know, and I'm not condoning the practice, just explaining it.

The at-fault driver is only liable for the loss of use of the vehicle until it's repaired or the claimant is paid for the total loss. At the time of payment the claimant becomes immediately able to replace the car. The claimant is paid on the day the check is issued. That the check has to go to the claimant's lender and it takes two weeks for the claimant's lender to process the payment is not the responsibility of the at-fault driver.

 

[Claims2Agent]

The number of days that a rental car is allowed by the liability carrier depends on when the claim is filed and when the damages are determined. Could be less than 14 days, could be more. 14 just happens to be the number under discussion.

Example: Claim is filed. Claim rep accepts liability on behalf of his insured and agrees to pay for the damage and authorizes a rental. Car goes into the shop. Car is reparable. Adjuster authorizes repairs. Rental stops when repairs are done. Could be less or more than 14 days depending on the amount of damage.

Example: Claim is filed. Claim rep accepts liability on behalf of his insured and agrees to pay for the damage and authorizes a rental. Car goes into the shop. Car is unrepairable and is a total loss. Adjuster determines the ACV to pay the claimant, calls the claimant, advises of the amount, claimant must send in title and turn in the rental car.

In the OP's case this process may have taken 14 days and that's all the adjuster will allow on the rental. With other claims it could take less than 14 days, sometimes more.

It's common practice of the insurance industry to cut off the car rental at time of settlement. Otherwise, claimants will be driving around on the insurance company's rental money while thinking about what to do about the settlement. The insurance industry says take all the time you want but you pay for your own car rental while you think about it.

Harsh, I know, and I'm not condoning the practice, just explaining it.

The at-fault driver is only liable for the loss of use of the vehicle until it's repaired or the claimant is paid for the total loss. At the time of payment the claimant becomes immediately able to replace the car. The claimant is paid on the day the check is issued. That the check has to go to the claimant's lender and it takes two weeks for the claimant's lender to process the payment is not the responsibility of the at-fault driver.

Agree with you here^^^ Almost a majority of the time the at fault drivers carrier is only paying till settlement is made and don't really care when the parties receive the checks. One thing to consider though is also where you live and what he States guidelines are for "Loss of Use" and what's deemed reasonable in that state. Might be a good idea to see what that is in your local state.

 

[adjusterjack]

One thing to consider though is also where you live and what he States guidelines are for "Loss of Use" and what's deemed reasonable in that state. Might be a good idea to see what that is in your local state.

For acecase the source would be the Georgia Department of Insurance.