Who Pays for a Rental Car After an Accident in Texas?

You have to deal with many challenges as the victim of a car accident in Texas. One is getting around without your car. Life will carry on while your vehicle is out of commission. You need another way to travel while your vehicle is in the shop or you wait for an insurance check to pay for a new car. Figuring out whose responsibility it is to pay for a rental car after an accident may take assistance from a Houston personal injury attorney.

Your Insurance Provider

First, find out if you have rental car coverage on your auto insurance policy. Benefits from your own provider can be the fastest and easiest way to cover the costs of a rental vehicle after an accident. In Texas, rental vehicle insurance is optional. The only mandatory types of insurance are property damage and bodily injury liability coverage. Rental car, medical pay, collision, comprehensive and uninsured/underinsured motorist insurance are all optional types of coverage.

If you caused the car accident, your insurance company may cover the costs of a rental car if you purchased this type of insurance. Your insurance premium may increase due to your negligence or fault. If you were at fault and you do not have rental car coverage, you may have to pay out of pocket for your rental after a crash instead. If you did not cause the accident, the other driver’s insurance carrier may be responsible for the costs of your rental vehicle.

The Other Driver’s Insurance Provider

You could receive a rental car expense-free from the other driver’s insurance carrier in one of two ways. The first is to seek coverage through your own insurance company first, then allow your carrier to seek a refund from the other driver’s insurer. This is a process called subrogation. Insurance subrogation means to front the costs for a policyholder during the insurance process, then pursue reimbursement from the at-fault party’s insurer. Subrogation saves your insurance company from having to pay for damages that were not your fault.

A first-party claim can be the path of least resistance for reimbursement for a rental car after a car accident in Texas. You may have another option, however – seeking insurance coverage directly from the company of the at-fault party. With this option, you may have to pay out of pocket for a rental car at first, then seek reimbursement from the other driver’s insurance provider later. Note, however, that the other driver’s insurance company could take its time processing your claim, leaving you without compensation for your rental car and other damages for a longer amount of time.

If you have to pay out of pocket for your rental car, ask your insurance provider which company to use. Some insurers have contracts with specific rental agencies. Going to the right one could make the claims process easier. Choose a car that is comparable to the one you crashed to ensure insurance coverage. An insurance company will not cover the costs of a sports car, for example, if you crashed an economy vehicle. Keep your receipts and the rental car agreement as evidence of your losses for an insurance claim later.

When to Hire a Car Accident Attorney

It can be difficult to know who is responsible for paying for a rental car after an accident. In Texas, the fault-based insurance system means the party that caused your collision will be liable for your damages – including the costs of a car rental. You may have to seek initial coverage from your own insurance provider first, however, or temporarily pay out of pocket. A car accident lawyer can help you handle a claim involving a damaged or totaled motor vehicle. Your lawyer can arrange a rental car for you and seek reimbursement or coverage from one or more insurance companies on your behalf.