Rental Car Reimbursement
Free Insurance Quote Comparison
Secured with SHA-256 Encryption
UPDATED: Dec 4, 2010
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
Insurance Question from Los Angeles, CA
Asked on 12/04/2010
Rental Car Reimbursement The other party hit my car and accepted full liability. I claimed the other party's insurance, Infinity, went to Infinity's body shop for an estimate, and went to my dealership's referral shop for actual repair. I was notified later the repair cost exceeds Infinity policy's limit. Infinity advised me to claim my own insurance and pay my deductible. Since I don't have rental car coverage, I claimed Infinity for the rental cost. Yet, Inifinty told me I may not be fully reimbursed because I have to share the limit with my insurance. I may only be reimbursed on pro-rate basis. What can I do?
Answer given on December 09, 2010
It seems that the costs to repair your car are exceeding the policy limits for the other driver. While you got the estimate from the approved shop, by going to the dealer you could have caused the repair costs to exceed the policy limit. While you have the right to choose your repair shop, it sometimes works against you when you go to a dealer, since their labor costs are often higher than other repair facilities.
By going to your insurance company for payment it does leave you without coverage for the rental car, since you don’t have that coverage on your policy. Once everything is settled, your insurance company will subrogate against Infinity to get reimbursement for their costs. If they are successful in getting reimbursed, then you will get the prorata portion of your deductible refunded. However, again the limits for the other driver may not be sufficient for you and your insurance company to be fully reimbursed, so the pro-rate reimbursement would apply.
IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and FreeAdvice.com AS IS. It has not necessarily been reviewed by the management staff of FreeAdvice.com nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although FreeAdvice.com has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on AttorneyPages.com to represent you.