Why Is Rental Coverage Important After An Accident?

Rental Coverage is Optional, but Important:

In Louisiana, having rental coverage is not a requirement for auto insurance. However, it can be very important in the event of an accident and we encourage you to have it.

Doesn’t the Other Driver’s Insurance Cover My Rental?:

If the other person caused the accident, shouldn’t their insurance cover your rental?  Technically, yes, but relying on the at-fault driver’s insurance to get you a rental vehicle may take a while (a week or more sometimes).  That’s because the at-fault insurance company has “built-in” ways of delaying your rental request. Here are a few examples:

  • We are waiting on the police report in order to establish and accept liability.
  • We haven’t been able to talk with their insured about the wreck.
  • We need your insurance information in order to confirm “no pay no play.”
  • We are waiting on our adjuster to see your car to confirm that it isn’t drivable.

In a nutshell, even though the at-fault driver’s insurance is technically responsible for a rental, you may be waiting a while for the reservation!

How do I Get a Rental Through My Own Insurance?:

If you have rental coverage, the first thing you want to do is let your insurance company know about the accident. Some people are hesitant to do this because they fear that their rates may go up or the insurance company may drop them. But remember, in Louisiana an insurance company cannot drop you or raise your rates due to a “non-fault” accident (an accident that is not your fault). Second, rental coverage is something you pay EXTRA for and are not legally required to have. This is exactly what it is for!

After filing a claim, tell your insurance company that you would like to use your rental coverage. Depending on the insurance company, they will either set up a rental reservation for you or explain how they will reimburse you up to a certain amount per day for the rental. Also, be sure to ask them how long the rental will last.

Typically, if you have rental coverage, you will also have “collision” coverage, also something you pay extra for. As discussed in some of our other articles, collision coverage covers your vehicle damage regardless of who is at fault for an accident. Like rental, it is usually easier to go through your own collision coverage for vehicle repairs rather than waiting on the other person’s insurance company.

Is the At-Fault Driver’s Insurance Ultimately Responsible for Rental Costs?:

Yes, the at-fault driver’s insurance will be responsible for reimbursing your insurance company for any money they paid on your behalf for rental costs. The good news is that your insurance company will take care of getting reimbursed, so you don’t have to worry about it. If your insurance paid you for your car damage (through your collision coverage), your insurance company will also seek reimbursement directly from the at-fault insurer, and will also try to get your deductible from them on your behalf.

Have You Been Injured In An Accident And Have Questions About The Ins And Outs Of Insurance After A Car Wreck?

If you have been injured and have questions about the ins and outs of insurance after a car wreck, contact us online or call our Covington office directly at 985.590.6182 to schedule your free consultation today. Flattmann Law serves clients on the Northshore, including Covington, Mandeville, Abita Springs, Bogalusa, Franklinton, Folsom, Madisonville, Goodbee, Hammond, Lacombe, Pearl River, and Slidell.


Grady Flattmann
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Local Covington, Louisiana attorney focusing 100% on personal injury matters.