Understanding Car Rental Policies and Settlement Details After a Total Loss Claim
Navigating vehicle insurance claims can be complex, especially when dealing with total loss situations and rental vehicle policies. If you’ve recently experienced a car accident and your vehicle has been declared a total loss, it’s essential to understand your rights and options regarding rental vehicle coverage and settlement details.
In a recent case, a driver involved in an accident with a AAA member found themselves questioning the specifics of their coverage and settlement process. The incident occurred in late March 2025, and the driver’s insurance situation was limited to liability coverage—meaning they did not carry comprehensive or collision insurance.
After the insurance adjusters evaluated the vehicle, the driver received documentation indicating that their car was deemed a total loss. An initial conversation with AAA representatives suggested that the driver might have the option to rent a vehicle for personal use during the claims process, rather than relying solely on a standard rental car. However, discrepancies emerged upon reviewing the settlement figures.
The settlement included a $700 Loss of Use payment, intended to compensate for the time the insured would need a rental vehicle. Yet, the driver discovered that personal rental costs in their area could easily surpass this amount, raising questions about whether the settlement adequately covers rental expenses.
Additionally, the settlement sheet presented a salvage bid of $1,600. Initially, the driver declined to retain the vehicle, opting instead to forgo the salvage value. However, in a subsequent offer from the insurer, the salvage amount was not fully reflected, prompting questions about why the salvage bid appeared differently in subsequent documents.
Key Questions to Consider:
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How many days of rental coverage are typically provided after a total loss?
Insurance policies and adjusting practices vary, but generally, coverage is limited to the period necessary for the vehicle’s settlement or the duration of a rental period specified in your policy. It’s advisable to clarify the exact rental days covered by your insurer, as many policies cap this duration at a certain number of days or dollars. -
Why does the settlement include only a partial salvage bid in some cases?
Salvage valuation often depends on various factors, including whether you choose to retain the vehicle or accept the cash settlement. Insurers may adjust or omit salvage bids based on subsequent negotiations or preferences expressed by the policyholder.
Practical Recommendations:
- Review your insurance policy carefully to understand the extent of coverage regarding rental vehicles after total loss claims.
- Communicate directly with your insurance
