Help! My Car Insurance Refuses to Cover Rental Car Costs
I’m in a bit of a predicament. After moving to Florida last year, I bought a brand new car, which I unfortunately got rear-ended in at the end of January. While the damage wasn’t extensive (just the driver’s side bumper, some quarter panels, and a few sensors needed replacement), it required a fair amount of work. In Florida, drivers are only required to carry a minimum insurance coverage of $10,000, which the woman who hit me had. Her insurance company acknowledged that the damage would likely exceed this amount. After getting a repair quote, the body shop estimated the costs at about $6,300.
Initially, her insurance covered my rental car while my vehicle was in the shop. However, they informed me that their rental coverage is part of the $10,000 policy limit—meaning the rental and repair costs are combined, and any expenses exceeding that are not covered.
Now, my car has been in the shop for six weeks with ongoing delays. The repair costs have skyrocketed to over $9,100, and I accrued roughly $961 in rental fees (not including taxes and surcharges) before last week. The insurance company recently stated they will stop covering my rental costs since the total is surpassing their $10,000 limit. The body shop claims the delays aren’t their fault and refuse to cover additional costs as well.
Getting my insurance involved doesn’t seem viable since I have a $1,000 deductible, and although I recently added rental coverage, I still don’t have much in the way of options. I do have underinsured coverage—could that help me somehow?
I’m extremely frustrated. The shop promised to keep me updated every Tuesday and Thursday but hasn’t followed through. I’ve had to reach out for updates and handle communication with the insurance company myself, who also seem to be ignoring requests.
Why am I faced with out-of-pocket expenses when the accident was clearly her fault, and her insurance should cover everything? Do I have grounds for a small claims case? Are there laws requiring insurance companies to cover repairs and rental expenses? Any advice would be greatly appreciated!
I’m sorry to hear about your frustrating situation — dealing with accidents and insurance can be incredibly stressful. Here are a few steps and considerations that might help you navigate this:
Understand Underinsured Motorist Coverage: Since you mentioned that you have underinsured motorist coverage, it’s worth checking the specifics of your policy. This coverage is generally intended to cover bodily injury, but some policies provide broader coverage for property damage (including rental expenses) when the at-fault party’s insurance is insufficient. Contact your insurance company to clarify your options under this coverage.
Document Everything: Keep thorough records of all communications with the body shop and the insurance companies. Document the timeline of repairs, emails, and phone conversations. This information can be crucial if you decide to pursue a claim or need to escalate the matter.
Discuss with the Body Shop: Since they have caused delays, it could be helpful to express your frustration to the body shop directly and ask if they can assist in alleviating some of your rental costs or expedite the repair process. Being persistent yet calm might help.
Small Claims Court: You may have grounds to file a small claims suit against the driver who hit you if your expenses exceed the coverage from her insurance. You would argue that you’ve incurred additional out-of-pocket expenses due to her inadequate insurance coverage. However, you should check the small claims limits in your area and seek legal advice to determine the feasibility of this step.
Insurance Complaint: If you feel that the insurance company is not handling your claim fairly, you can file a complaint with the Florida Department of Financial Services. They oversee insurance companies and can help facilitate a resolution.
Consult a Lawyer: If the situation doesn’t improve, consider consulting a lawyer, especially one experienced in auto accident cases. They can provide tailored advice based on your specific circumstances and potentially help negotiate with the insurance companies on your behalf.
Explore Rental Reimbursement Options: Given that you recently added rental coverage to your policy, check if there are any options for rental reimbursement from your own policy, even if it comes with a deductible. Depending on your insurance company, there might be ways to minimize your out-of-pocket costs despite the deductible.
Navigating insurance claims can be complicated and frustrating, but it’s essential to advocate for yourself. Best of luck with getting this resolved!