The at-fault driverโs insurance company is typically responsible for the reasonable cost of a rental vehicle while your damaged car gets repaired or until you can reasonably replace it following a total loss.
The at-fault driverโs property damage liability coverage usually pays this cost once the insurer accepts fault. However, you might need to utilize your own rental car reimbursement coverage or pay out-of-pocket first if fault is disputed, rental car insurance coverage is still being investigated, or the other driverโs insurance company hasnโt accepted the claim yet.
Auto insurance coverage policy limits as well as rental cutoff dates affect transportation costs during replacement or repairs.
Call us today for a FREE consultation at (800) 718-4658 or contact us if you or a loved one was injured or killed in a car accident. We can help you seek financial compensation for medical bills, lost wages, pain, suffering, wrongful death and more, and weโve been helping car accident injury victims since 1990. We will charge you no legal fee until we win your case.
Table of Contents
- Who Pays When the Other Driver Caused the Accident?
- Who Pays If You Caused the Accident?
- What Happens When Fault Is Disputed or Shared?
- What If the Other Driver Is Uninsured or Leaves the Scene?
- How Do You Get a Rental Car Approved and Paid For?
- How Much Will Insurance Pay for a Rental Car?
- How Long Will Insurance Pay for a Rental Car?
- Does Personal Car Insurance Cover the Rental Vehicle?
- Get Help With Rental Expenses After a California Injury Accident
Who Pays When the Other Driver Caused the Accident?
The at-fault driverโs property damage liability coverage usually pays for rental car costs while your vehicle gets repaired or replaced.
California requires that drivers carry a minimum of $15,000 in property damage liability coverage under California Vehicle Code Section 16056. This new minimum took effect in 2025.
The at-fault driverโs insurance company will open a claim, investigate liability and then authorize coverage of rental car expenses once fault is accepted.
There are two common payment methods when the other driver caused the accident:
- Direct billing arrangements between insurers and rental agencies
- Reimbursement after you submit rental receipts and a rental agreement
Keep receipts in order to claim reimbursement for out-of-pocket rental expenses if your insurer uses the latter method.
You might need to pay out-of-pocket if the at-fault driver disputes liability. Insurance companies might dispute liability, delaying reimbursements for rentals.
Liability isnโt always accepted immediately. You can help protect your right to reimbursement by understanding how a property damage claim works.
Who Pays If You Caused the Accident?
Your own personal auto insurance policy will pay for rental car fees, but only if you bought rental reimbursement coverage. Otherwise, youโll be responsible for rental costs.
Rental reimbursement coverage is typically optional regarding auto insurance policies.
The other driverโs insurance company will not cover your rental car if you caused the accident.
Liability coverage pays for the other driverโs damages. It does not pay for your own vehicle or rental fees.
Collision coverage repairs or replaces your car. It does not pay for rental cars unless rental reimbursement was added separately.
Certain credit cards and auto club memberships include limited rental coverage.
Fault affects more than just rental costs. Review how an at-fault accident can affect your insurance and driving record.
What Happens When Fault Is Disputed or Shared?
Insurers commonly delay approving rental cars until investigations determine fault when fault is disputed or shared.
California follows a comparative fault rule. Both drivers can share responsibility for an accident.
You might need to use rental reimbursement coverage on your own policy while fault is being sorted out, or pay out-of-pocket, seeking reimbursement later.
Possible outcomes once fault is resolved include:
- The full rental cost is covered by the other driverโs insurance company.
- The other driverโs insurer could pay a share of your rental cost based on its driverโs percentage of fault.
- Your own insurance company advances costs, recovering them later via subrogation.
What If the Other Driver Is Uninsured or Leaves the Scene?
A rental car will more likely come from your own collision coverage plus a rental reimbursement endorsement if the other driver is uninsured or flees the scene. It will likely not come from uninsured motorist property damage coverage.
Uninsured motorist property damage coverage pays only for direct damage to your vehicle under California Insurance Code Section 11580.26. This is capped at $3,500 or the actual cash value, whichever is less. This does not include loss of use, by statute.
This coverage primarily helps drivers without collision coverage. Collision pays for repairs and UMPD may cover your deductible if you carry both, up to $3,500.
Payment under this coverage typically requires actual physical contact with the other vehicle as well as an identified license plate or driver. True unidentified hit-and-run accidents may not qualify.
Almost 5.3 million vehicles on Californiaโs roads are uninsured, according to the California Department of Insurance.
Report hit-and-run accidents to police immediately. Police reports support insurer investigations and any uninsured motorist claims you do have.
How Do You Get a Rental Car Approved and Paid For?
You usually start getting a rental car approved by reporting the accident to the at-fault driverโs insurance company or your own insurance company. You then request a rental authorization prior to picking up a vehicle.
Steps to follow include:
- Report the accident.
- Open a claim.
- Ask the adjuster for a direct billing arrangement or rental authorization number.
- Choose a rental car company location that accepts insurance direct billing, if applicable.
- Keep all rental receipts as well as the rental agreement so you can be reimbursed.
Reimbursement claims usually require submitting receipts within a set window. This window is often 30 days after returning the rental vehicle.
How Much Will Insurance Pay for a Rental Car?
An insurance provider will usually pay up to your policyโs daily and overall dollar limits when you cause an accident. Insurance companies will usually pay up to what is considered reasonable for a comparable vehicle when someone else causes an accident.
Your Policyโs Daily and Overall Limits
Rental reimbursement policies typically have total and daily limits.
Rental reimbursement coverage on your own policy will usually pay a set daily amount. This is commonly between $30 and $50 per day, and goes up to a total policy cap.
You are responsible for the difference between the actual rental cost and your policyโs daily cap if you exceed the daily limit.
Check your policy for the daily dollar limit, the total dollar cap and the maximum number of days covered.
A Comparable Vehicle and Reasonable Expenses
Insurers typically need to provide rental vehicles that are comparable in size and class to your own car when the other driver is at fault.
Necessary and reasonable rental expenses usually exclude add-ons such as GPS units or satellite radio unless they are justified by special circumstances.
Optional insurance offered at rental counters is usually not separately covered if your own policy already extends to the rental vehicle.
How Long Will Insurance Pay for a Rental Car?
Insurance will usually pay for a rental car for as long as it reasonably takes to repair your vehicle, or until you reach your policyโs dollar limit, whichever comes first.
Repairs without calibrations average 13 days, while repairs requiring multiple calibrations average over 17 days, according to CCC Intelligent Solutionsโ Q3 2025 report.
Repair timelines vary based upon parts availability, vehicle complexity and shop backlog. Simple repairs may take days and complex repairs may take weeks.
What If Repairs Take Longer Than Expected?
Ask the insurance adjuster about extending the rental or expect to cover additional days yourself if repairs take longer than your policyโs rental coverage period.
You can support requests to extend rental coverage by documenting parts delays or shop backlogs.
Common causes for delays include:
- Backordered parts
- Required calibrations on newer vehicles
- Extended shop wait times
What Happens If Your Car Is Totaled?
The way rental coverage ends after a total loss depends upon whose policy is paying for it.
The California Department of Insurance advises, regarding your own rental reimbursement coverage, that coverage ends when the vehicle gets repaired, the loss gets paid or the specified day limit gets reached, whichever comes first. Total losses do not automatically extend it.
Youโre entitled to financial compensation for the loss of use of your vehicle. For rentals paid as loss of use claims against at-fault driversโ insurers, common practice is to keep paying until a settlement offer is made, plus a short additional window to return the car.
You may claim loss of use damages even if you donโt rent a vehicle.
Total loss claims reached a record share of all auto claims through October 2025, according to CCC Intelligent Solutionsโ Q4 2025 report.
Ask the insurance adjuster in writing exactly when your rental coverage will end so you will have time to arrange a replacement vehicle.
Does Personal Car Insurance Cover the Rental Vehicle?
It depends entirely upon your policyโs specific language if your personal auto policy covers a rental car and if you should still buy separate rental car insurance.
The California Department of Insurance has cautioned that not all auto policies automatically cover rental vehicles. Some policies only extend coverage when rentals are replacement or substitute vehicles used while a vehicle is in a shop for repairs.
Liability, collision and comprehensive protection typically transfer to the rental, where coverage does apply, at the same limits and deductibles carried on your own vehicle.
Your policy will probably not cover physical damage to your rental car if you carry only liability coverage on your own vehicle.
Confirm details with your insurance company prior to renting rather than assuming coverage transfers. Consider:
- The rental companyโs collision damage waiver
- Credit card rental car insurance benefits
- A standalone rental car insurance policy
Get Help With Rental Expenses After a California Injury Accident
Rental car reimbursement can be complicated once fault, policy limits or insurer delays enter the picture.
A lawyer can push back on an insurer that is denying or slow-walking a rental car request while your injury accident claim is pending.
Call us today for a FREE case evaluation at (800) 718-4658 or contact us if you or a loved one has unresolved rental car costs. We work on a contingency fee basis, so we will charge you no legal fee until we win your case.
