I Had to Get a Rental Car After a Car Accident. Can I Be Reimbursed for That?

After a Michigan car accident, your vehicle may spend days in a repair shop or be declared a total loss. During this time, you still need transportation, and rental car costs can add up quickly. Without clear insurance guidance, you may end up paying out of pocket for expenses that should be covered.

At Matz Injury Law, we help Michigan drivers understand their insurance policies, handle the claims process, and pursue reimbursement for rental car expenses. If your insurance company delays or refuses payment, our attorneys can step in to protect your rights.

Who Pays for a Rental Car After a Car Accident in Michigan?

In Michigan, responsibility for rental car costs depends on your insurance coverage and the details of the accident. Your own auto policy may pay for a rental through rental reimbursement coverage or collision coverage. If another driver is at fault, their insurance company may be responsible for your rental expenses.

Often, you will need to pay the rental company first and then submit receipts for reimbursement. Keeping accurate records of your expenses is important to avoid delays or disputes in the claims process.

Will Insurance Pay for a Rental Car During Repairs in Michigan?

Insurance typically covers rental costs only if you purchased rental reimbursement coverage as part of your policy. This optional add-on pays for a rental vehicle while your car is being repaired after a covered accident. Without it, you may be responsible for the costs yourself unless the at-fault driver’s insurance company quickly accepts liability.

What Is Rental Car Reimbursement Insurance?

Rental car reimbursement coverage is an optional benefit you can add to your auto insurance policy. It helps cover the cost of a rental vehicle while your car is being repaired after a covered accident. This protection is not included in standard policies and must be purchased in advance through your insurance agent.

What Does Car Rental Reimbursement Cover?

• Daily rental fees, up to your policy’s limits.
• Taxes and standard rental charges.
• Delivery and pickup fees charged by the rental company.

Coverage applies only while your vehicle is being repaired after a covered accident.

What Doesn’t Car Rental Reimbursement Cover?

• Fuel costs.
• Optional rental insurance.
• Vehicle upgrades beyond your policy’s daily limit.
• Rentals unrelated to an accident, such as for maintenance or vacations.
• Rental costs if you delay reporting the accident to your insurance company.

Obtaining a Replacement Rental Car Reimbursement

Once you file a claim, your insurance agent can help you arrange for a rental vehicle. Having rental reimbursement coverage in place before the accident prevents you from facing large upfront rental costs while your claim is processed.

What Are the Limits of Rental Car Reimbursement Coverage in Michigan?

Rental reimbursement usually comes with a daily limit (for example, $30–$50 per day) and a total payout cap (such as $900). If your rental exceeds these limits, you must pay the difference. Reviewing your policy in advance helps you understand exactly how much coverage you have.

How Long Will Insurance Pay for a Rental Car?

Insurance generally covers rental costs until:

• Your vehicle repairs are completed.
• Your vehicle is declared a total loss.
• You receive a settlement offer on your claim.

Coverage may end sooner if delays are not directly tied to the accident, such as waiting for non-essential parts. Always confirm the time limits with your insurance adjuster.

Can I Be Reimbursed for a Rental Car if I’m Not at Fault in an Accident?

Under Michigan’s no-fault system, your own insurance company typically covers rental expenses first, even if you were not at fault. Later, the at-fault driver’s insurer may be responsible for reimbursement. Protect your claim by reporting the accident promptly, sharing the other driver’s insurance details, and keeping all rental receipts.

What Happens When the Insurance Company Refuses to Pay for a Rental Car?

If your insurance company denies rental coverage:

• Review your policy to confirm your coverage.
• Request a written explanation of the denial.
• Appeal the decision through your agent or adjuster.
• Submit receipts, repair shop records, and accident documentation.

If the denial persists, a Michigan car accident lawyer at Matz Injury Law can review your case and challenge the decision on your behalf.

How Does Payment for Rental Reimbursement Coverage Work?

Insurance companies handle rental costs in two ways:

• Direct payment: The insurer pays the rental company directly, so you have no upfront expense.
• Reimbursement: You pay first and then submit receipts for repayment, which may take longer to process.

How to Get Rental Car Reimbursement Coverage

You can add rental reimbursement coverage by contacting your insurance agent and requesting it as part of your auto policy. Coverage levels vary, so you may choose daily limits and maximum payouts that fit your budget. Review your policy at renewal or when purchasing a new vehicle to confirm you have this protection in place.

Potential PIP Compensation for Damages After a Car Accident

Michigan’s personal injury protection (PIP) covers certain economic losses after a car accident, including:

• Medical expenses
• Lost income, up to 85% of wages
• Household replacement services

PIP does not cover rental vehicle costs, which makes rental reimbursement coverage an important add-on to your auto insurance policy.

Recoverable Damages Not Covered by PIP After a Rental Car Accident

PIP does not cover non-economic damages such as pain and suffering, loss of enjoyment of life, or loss of companionship. It also excludes certain economic damages once policy limits are reached. In these situations, you may file a personal injury claim against the at-fault driver to seek additional compensation.

Why Clients Choose Matz Injury Law in Southfield, Michigan for Rental Car Accident Injury Claims

At Matz Injury Law, we know how frustrating it is when insurance companies delay or deny valid rental car claims. We represent clients across Michigan, holding insurers accountable and guiding accident victims through every step of the process. Our team provides clear communication, careful case handling, and advocacy focused on protecting your rights. Contact us today for a free case evaluation.

Testimonials

“I got into a car accident in 7/2023 and was recommended by my mom’s friend. Steven and Jared Matz kept me updated throughout the claim. Kristina would reach out to me to make sure I received all documents that came to me. They stayed in contact and talked me through it all. I am grateful for the services that I received from this father and son team! May God continue to bless them!” — JoaQuaina P.

“I reached out to Steve after my car accident and even without paying him he was there for me. Offered me advice and told me everything I needed to know about what my insurance company owed me. He cares about people and it shows!” — Ky W.

“Steve Matz was there when I needed him. Nobody expects to be a victim of a car accident but when I found myself in that situation it was overwhelming. Steve made everything easy. Steve did not accept the insurance Company’s first offer. He held out and got me a better settlement. Steve is very kind and professional. I highly recommend Matz Injury Law.” — Sharon K.

Frequently Asked Questions

Is Rental Reimbursement Coverage Worth It?

Yes. Rental reimbursement coverage prevents large out-of-pocket expenses after a car accident. It pays for a rental vehicle while your own car is being repaired, up to policy limits. Without this optional coverage, you may have to rely on the at-fault driver’s insurance company or pay costs yourself.

Is There a Deductible With Rental Reimbursement Coverage?

Rental reimbursement coverage usually does not carry its own deductible. However, your collision coverage or comprehensive coverage may have a deductible that applies first before rental reimbursement begins. Always review your car insurance policy to confirm whether a deductible affects your rental car coverage.

If My Car Breaks Down, Will Insurance Cover a Rental?

No. Rental reimbursement coverage only applies if your rental vehicle is needed because of a covered claim, such as a car accident. It does not apply to mechanical breakdowns, routine maintenance, or non-accident reasons. These expenses must be paid out of pocket or covered through another source.

Can I Add Rental Reimbursement Coverage After an Accident?

No. You cannot add rental reimbursement coverage after a car accident and expect it to apply to that incident. Insurance providers require this optional coverage to be in place before a covered claim occurs. Review your auto insurance policy now to confirm whether you have rental car reimbursement coverage.

What Should I Do if the At-Fault Driver Doesn’t Have Insurance?

If the at-fault driver lacks insurance, you may face delays or unpaid rental car expenses. In Michigan, uninsured motorist coverage may help. You may also rely on your own insurance policy if you have rental reimbursement coverage. Speak with a car accident lawyer to protect your rights and recover costs.

Who Pays for the Rental Car When You’re Not at Fault?

If you are not at fault, the at-fault driver’s insurance company should cover your rental car costs. In practice, reimbursement may take time. Using your own rental reimbursement coverage can help you avoid delays, with your insurance provider later pursuing repayment from the at-fault party’s insurance company.

Talk to Our Michigan Car Accident Attorney Today to Learn About Your Rental Car Reimbursement Options

If you were in a car accident and are facing rental car expenses, Matz Injury Law can help. We represent clients across Michigan in insurance claims, reimbursement disputes, and personal injury cases. Call 866-226-6833 or fill out our contact form for a free consultation. Our contingency fee is 22% — not 33% like most firms — and you only pay if we recover compensation for you.