Beyond the injuries and property damage they cause, car accidents are just plain inconvenient. With your car in the shop, how are you going to make it to work and get the kids to school in the morning? Are you on the hook for the cost of a rental car while you wait for the shop to order parts and make extensive repairs to your vehicle?
At Travis, Moore & Brann PLLP, we want to help demystify who pays for the rental car damage after an accident. Here’s what you need to know.
Montana Car Insurance Laws
Montana employs a traditional fault-based car insurance system. This means the driver who causes a crash is responsible for compensating victims financially. Montana law requires all motorists to carry liability insurance that provides at least:
$25,000 for bodily injury or death of one person
$50,000 for bodily injury or death of two or more people
$20,000 for property damage
If a careless Montana driver hits you, their insurance carrier has to cover your personal and financial costs—including the expense of a rental car. That would mean filing an insurance claim against the at-fault driver’s insurance policy. Alternatively, if the driver lacks insurance or their carrier denies your claim, you could pursue a personal injury lawsuit against them.
So, does the at-fault driver pay for the rental car? Ideally, yes. However, you probably need a car immediately, and the at-fault driver’s insurer may not offer up the cash to cover a rental vehicle until they determine their policyholder is at fault, which can take time.
Rental Car Reimbursement Coverage
Rental car insurance is an optional coverage you can add to your policy at the time of purchase to protect yourself and your family. This coverage can help cover transportation expenses like rental car costs or public transportation fares when an accident damages your car. It typically does not cover rental car costs associated with routine maintenance of your primary vehicle.
To add rental car coverage, most companies require you to carry comprehensive and collision coverage. It’s always a good idea to review the requirements, costs, and potential deductible amounts with your carrier. Every policy is different, and while most rental reimbursement coverage does not include a deductible, it may be subject to daily limits or maximum amounts for covered claims. Typical policies provide transportation coverage up to $30 to $60 per day until your car is repaired or for a maximum of 30 days. If you need a rental car or transportation costs for longer, these may be considered out-of-pocket expenses, not covered by your insurance provider.
Paying for the Rental Car
Most people rely on rental reimbursement coverage to help them pay for transportation expenses after an accident while their vehicle is in the shop. It can also protect you following a crash, regardless of who caused the accident. Again, the other driver’s insurance company will not pay you until it determines its policyholder is at fault. In the meantime, you may feel trapped at home, unable to make it to work or school, or forced to pay for transportation costs out of pocket.
Fortunately, if you carry rental reimbursement coverage, your insurer will pick up the tab for a rental car even if the other driver is at fault. Once the insurance companies agree on fault, the at-fault driver’s insurance company will reimburse your insurance provider. If you paid for the cost of the rental car yourself, it should reimburse you directly. As such, be sure to keep detailed records and receipts of your accident-related expenses. This makes it easier to pursue the money you deserve.
Insurance policies are complicated and hard to understand, and the companies that sell them aren’t always eager to pay out claims. That’s why it pays to turn to an experienced Montana car accident attorney on your side. They can review your policy with you and determine what you’re entitled to. An attorney can also fight for you and pursue maximum compensation from the at-fault driver or their insurer for all your accident-related financial losses and medical expenses.
Empower Yourself with Help from an Experienced Montana Car Accident Attorney
Asserting your legal rights and fighting for the money you deserve is hard when you are coping with significant injuries and the frustrations of trying to navigate daily life. At Travis, Moore & Brann PLLP, we want to empower car accident victims, advocating for justice and fair compensation.
Need help pursuing compensation after a car accident someone else caused? Then call our Montana car accident lawyers today at (406) 752-7550 to arrange a free case evaluation with a car accident attorney.
