Rental Car Coverage

Page 2

Your rental car coverage will not pay for a rental until the body shop has your car in their garage AND has the necessary parts on hand to start working. So if your parts take a long time to arrive (from China, Japan, Taiwan, or the closest salvage yard), then you will be driving your wrecked vehicle around town!

The next limitation that exists in the termination of the rental car is when the insurance company decides to finish the rental car coverage when your repairs are done. Therefore, you must pick up your vehicle that day and drop off your rental that same day. It gets worst in a total loss situation. In most jurisdictions, if the car is a total loss, you must get out of the rental car THREE DAYS AFTER THE FIRST PAYMENT IS ISSUED (insurance companies usually issue two payments). Texas allows for one day! That is it only one day after THEY TELL YOU that the car is a total loss.

The first payment upon deeming a vehicle a total, and a second payment once they have the title on hand. See more on total losses). You read right, three days after the first payment is issued. Most jurisdictions DO NOT ALLOW FOR MAILING TIME, this means that by the time you get the check, you better be out of the rental.

Montana is one of the few states that makes the rental car coverage count three days after you RECEIVE the check. Either way, I think this is unfair, three days (sometimes less) to find a vehicle is just not enough.

The fact the value is under protest or in dispute does not matter. Rental Car Coverage will end three days after the insurance carrier issues payment. Check on the legislation of your state for more information.

If you are in this situation, the here is a tip. If you car is a total and they will issue payment, request (demand) that they will overnight the check to you (this will get you about two days to get a car).

If you do not have an address where this is possible, then have them overnight it to you agents office, and have your agent call you once the check is there so you can pick it up! If this is not possible, then have one the local claims office (claims office is not your agent��s office) give you a check on the spot.

If this is not possible, then have the field representative or the people that inspected your car (if it was an employee of the insurance company) give you a Field Check (a handwritten check). When there is a car loan, then things get even messier (read more on total losses).

There is one last restriction or option that I would like to discuss. Most insurance companies will make you prove that you have an actual loss of use. Therefore, if you have an extra car, they will ask, ��why don��t you drive that��? Sometimes it is not a big deal, and you can drive that, but you will forfeit your loss of use claim (you had an extra car, so there was nothing you missed out on, or no an actual damage to you).

What started to happen was that people wanted to get paid the rental car coverage directly and they would figure out some other transportation arrangements (husband drops wife at the office and picks her after work, public transportation, bicycle, motorcycle, etc.) The adjuster will not just pay the limits, $25 per day (that would be to easy), they would negotiate a cheaper rate so they can save some money, so they would pay $20 or close to it.

This seem fair to me, you are having to adjust your lifestyle (sometime a big pain in the neck). So you can get some rental car coverage and they are saving a few bucks (I guess a win for the carrier and a do not screw me as hard for the insured).

Many insurance companies (Allstate is one of them) have realized that they can save even more at your expense, and they have capitalized in this business venture quickly. They have language under the rental car coverage section where if you do not rent a vehicle, the maximum they will pay you (if you have a valid loss of use claim, in other words no extra vehicle available to you) is $10 per day or less (even if you have $60 per day limits).

To Read the Rental Car Coverage page 1 click here.

Your rental coverage will not cover for towing or storage charges. Collision and Comprehensive accidents will. So why get Towing coverage? Click here to learn more.

If the insurance company told you that they would pay for a rental but later changed their mind, then you must read the concept of Promissory Estoppel! Click here.

Enter your search termsSubmit search form

Web www.auto-insurance-claim-advice.com