If you have been involved in a car accident and the damage has left your car undriveable, odds are you are going to need a rental car. If you have rental car coverage with your insurance company, they will set up a reservation for you at a local rental agency. Below are some tips on making this part of the post-accident process as hassle-free as possible.

Rental Car Insurance Rates

Most insurance companies have flat rates with most rental car companies for different-sized vehicles. The amount your insurance companies allows per day is typically $20-$30 per day, with a $900 a month max. They want your car to be done as soon as possible, as do you, and will often give extensions for your rental if necessary. Some premium insurance companies offer no per-day cap and no max. In this case, the rental agency will gladly put you in the nicest car they have-if they can get one.
It helps to find out which rental company you have a reservation with and call them the day before you plan to come and get your vehicle to request a premium car or SUV. The agency usually has 24 hours from when they receive the internal reservation to get you transportation, though if they don’t they may put you in another car and switch you out when they get something nicer, which they will do quickly.
At $20-$30 a day, most rental car agencies will put you in a vehicle that may not be comparable to yours, as they are only obligated to provide you with basic transportation that is as close to your daily allotment as possible. More often than not you end up paying a few dollars out of pocket a day, as well as taxes, especially if you want something decent sized. Twenty dollars a day may only pay for an economy-sized car. The few extra dollars may be worth it to drive in a comfortable car.

Deposits

To save yourself a lot of time and aggravation, call the rental car agency before going and find out how much of a deposit they require for an insurance replacement rental. Unless your insurance company or your policy states that none is needed, you will almost always have to put a deposit down on your credit or debit card. Your adjustor will almost never mention this deposit, so you may not be aware until you pick up your rental. Regardless of fault, whether you are going through your insurance company (insured) or the driver’s that hit you (claimant), you will need to leave a deposit before you leave with a car. It is usually around $100-$150.

This is because if an accident or any damage occurs in the rental, regardless of fault, the rental agency will have to file a claim against your insurance policy and collect your deductible. The credit card you have on file for your deposit allows them to legally do so, even though they authorize your card for the deposit and no money comes out of your card. However, if you are using a card that says “debit”, if it’s linked to a checking account, your deposit will come out of your card and refunded within 7-10 business days, so make sure you have that amount available.

Your deposit also allows them to charge you gas which they have on a match system, where you are responsible for bringing back the same amount of gas you left with, as well as lost key and cleaning fees beyond normal wear-and tear. The gas amount and existing damage are marked on your contract, so make sure you go around the vehicle with the agent so pre-existing damage is noted before you sign or initial the contract. If you do not have the funds available on a credit or debit card, call your insurance agent and have them call the rental car agency to negotiate a deposit. Only special circumstances, such as if the driver is under 21, will make the deposit amount non-negotiable.

Rental Car Insurance

Rental car agencies are a business, and they make their money a variety of ways. One way is by offering a damage or collision waiver, which if you opt for states that you are not responsible for any damages incurred while driving, regardless of fault. This is not insurance. Whether you are the insured or the claimant, the respective insurance company will not automatically pay for the damaged rental as well, even if you have comprehensive and collision on your policy. If your policy does not cover rental cars, the rental agency can refuse to rent to you unless you take their coverage as they have to cover themselves as well. It’s a good idea to check and see if you have rental coverage on your policy before you go to give yourself an idea of what your expenses will be.

Also, this daily amount is non-refundable after you return the vehicle, and differs depending on the rental agency. It’s usually affordable and can work two ways. If you do take it, your out-of-pocket expenses increase, but if the vehicle is damaged, you are not responsible for paying your deductible in any way.

If you do not, and the vehicle is damaged, the rental car agency will file a claim with your insurance and can charge your card for your deductible, the amount of which you will be asked during the rental process. It is usually $250-$500 which is a lot for a car you only planned to use while yours is being repaired, and this claim goes on your record. Use your best judgment when asked if you plan on taking their coverage.

If you know ahead of time what to expect and what to bring with you, it can your rental car experience less stressful. And don’t forget your driver’s license and insurance card!