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How much does an average car insurance company pay for a rental car?

Is an insurance company obligated to pay for car rental after an accident?

  • Last week I was involved in an accident that was not my fault where my car has been deemed a total loss. I was talking to my insurance agent today, he mentioned that the other person's insurance should have put me on a rental that same day or at least the next day. I called them today angrily and demanded a rental. They mentioned they would cover $24.99 per day, but it would be a reimbursement not direct pay. In order to rent the car I had to allow the rental company to freeze $250 from my credit card and after the rental they would return the 250 back and then charge me for the rental price. Is the insurance company obligated to pay for a rental directly? I mean, the $250 dollar freeze plus having to front the money puts an undue financial stress on me.

  • Answer:

    That's how it goes when renting a car. It isn't the insurance company's fault this "puts undue financial stress" on you.

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No, they are not required to pay up front. Sorry about the 'financial stress' but their policy is their policy.

It depends on the type of policies that you and the other party have. Some insurance companies policies are not required to pay for a rental while in your case they may reimburse you. It would be advisable to have your insurance contact the other parties insurance to save you from frustration.

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