Traffic in California is heavy, especially in major cities like Los Angeles, San Francisco, and San Diego. According to recent data from the California Highway Patrol and the Los Angeles Police Department, there are approximately 137 car accidents every day within Los Angeles city limits alone. Across California, thousands of collisions occur each week, creating ongoing risks for drivers statewide.
A car accident can happen without warning and add financial and emotional stress to your life. One immediate concern many Californians face after a crash is how to get around while their vehicle is being repaired. A common question for drivers in California is who pays for your rental car after an accident.
Who Pays for a Rental Car if the Other Driver is At Fault
California is an at-fault state. The driver who caused the accident or their insurance is responsible for damages, including the cost of your rental car while your vehicle is being repaired.
If the other driver is at fault, their insurance should cover the rental car. The rental car should be comparable to your own vehicle. After you file a claim and the insurance company approves it, they will either reimburse you or pay the rental company directly.
If the other driverโs insurance disputes fault or delays payment, you may need to use your own insurance if you have rental reimbursement coverage or pay out of pocket while seeking reimbursement once liability is established. You may also consider pursuing a diminished value claim, which is recognized under California law if your vehicle loses market value even after repairs. You can review the California DMVโs overview on diminished value claims here.
Who Pays for a Rental Car if You Are At Fault
If you caused the accident, your ability to get a rental car depends on your insurance policy. If you purchased rental reimbursement coverage, your insurance will typically cover the cost either partially or fully. If you did not purchase rental coverage, you will need to pay for the rental car while your vehicle is being repaired.
How Long Will Insurance Pay for a Rental Car in California
Under California Code of Regulations Title 10 Section 2695.8, insurers must pay for a rental car for a reasonable period of time necessary to repair or replace your vehicle. You can review the regulation here.
In practical terms, this means that while your vehicle is being repaired and during delays in parts delivery that are outside your control. If your car is declared a total loss, your rental coverage typically ends when the insurance company makes a settlement offer, not when you cash the check.
What Happens if the Other Driverโs Insurance Denies Your Claim
Insurance companies often look for reasons to deny claims to limit payouts. If the other driverโs insurance denies your claim, you will need to decide whether to wait for the dispute to resolve, which can take weeks or months, or pay for the rental yourself while seeking reimbursement later.
You can also use your own insurance rental reimbursement coverage if available while your attorney works to establish liability and secure compensation.
Important Note on California Proposition 213
If you were uninsured at the time of the accident, California Proposition 213 limits your right to recover non-economic damages even if the other driver was at fault. However, you can still recover property damage, including the cost of a rental car.ย
Avoid These Common Mistakes with Rental Cars After an Accident
Do not continue renting after your vehicle is repaired. Insurance will stop paying for the rental once your vehicle is ready for pickup, and you will be responsible for any additional days.
Do not continue renting after you receive a settlement check if your car is a total loss. The insurance coverage ends with the settlement offer, and further rental costs will be your responsibility.
Do not upgrade to a luxury vehicle unless you are prepared to pay the difference. Insurance will only pay for a rental vehicle that is comparable to your car before the accident. If you rent a luxury vehicle, you will be responsible for the additional daily cost.
Considerations for Electric Vehicle Owners
If you drive an electric vehicle, note that your rental replacement may not automatically be an electric vehicle unless your insurance policy specifically states so. It is important to confirm with your insurer what will be provided to avoid unexpected out-of-pocket costs.
Frequently Asked Questions
Does insurance pay for a rental car after an accident in California
If you are not at fault, the other driverโs insurance typically pays for your rental car. If you are at fault, your insurance will pay only if you purchased rental reimbursement coverage.
How long will insurance pay for a rental car in California
Insurance will pay for a rental car for a reasonable period necessary to repair your vehicle or until you receive a settlement offer if your vehicle is declared a total loss.
What if the other driverโs insurance denies my claim
If the other driverโs insurance denies your claim, you may use your own rental reimbursement coverage while your attorney disputes the denial and works to establish liability.
Contact Ernst Law Group for Help After a Car Accident
Car accidents bring unexpected expenses and stress, including issues with getting a rental car while your vehicle is being repaired. Understanding your rights under California law can protect you from paying out of pocket unnecessarily.
Ernst Law Group has represented Californians for over four decades, securing maximum compensation and protecting the rights of clients after car accidents. We can help you understand your options and handle negotiations with insurance companies.
Call 805 779 3630 or contact us online to schedule your free consultation with a California car accident lawyer.
