This article will discuss what to do if an insurance company refuses to pay for rental car. There are instances where insurance companies refuse to pay for an insured’s rental car. During this period, an insured must take some actions to make a claim instead of staying quiet.
Key Takeaways In This Article
• 7 things to do if an insurance company refuses to pay for rental car.
• How do insurance companies get money to pay for a rental car?
• Answers to frequently asked questions about what to do if an insurance company refuses to pay for rental car.
7 Things To Do If Insurance Company Refuses To Pay Rental Car
Insurance companies sometimes refuse to pay for an individual’s rental car. In this situation, one must take some action to get payment. Below are the 7 things to do if an insurance company refuses to pay for a rental car.
• Ask For An Explanation
One of the things to do if an insurance company refuses to pay for rental car is to demand an explanation. An insured needs to contact the insurance company and present all the evidence that supports their position. If they are still persistent, you need to demand an explanation from them.
• Use Your Policy
Utilizing your policy is an ideal way of avoiding any refusal to pay. Once the policy you are using has collision coverage, you need to use it in making a claim. Your insurance company would then pursue the subrogation process to handle the issue.
• File A Lawsuit
Another ideal thing to consider when an insurance company refuses to pay for rental car is to file a lawsuit. You would need a lawyer to help you get a settlement by presenting a valid case before the court.
• Threaten Their Profits
Insurance companies lay more emphasis on their profits, and they will do anything to increase them. Once you experience a refusal on your rental car payment, you need to threaten the company with something that will affect its profits.
You would need to consider an important thing that will significantly affect them.
• Small Claims Court And Mediation
Depending on where you reside, if your claim is relatively small, you can decide to go to a small claims court for a solution. You can comfortably seek resolution with or without a lawyer.
This is another way to make a claim whenever an insurance company delays or doesn’t want to settle the rental car.
• Know Your Insurance Policy And Rights
An individual must carefully study and understand the various details of their insurance policy. This would help them understand various inclusions and how to make a claim better.
Learning more about your insurance policy is an excellent advantage whenever an insurance company refuses to pay for a rental car.
• Be Persistent
The last thing to do is to remain updated with happenings; one would need to maintain constant follow-ups with the insurance provider throughout the process.
It’s important that whenever you file for a claim, you constantly stay in touch with the insurance company so that there will not be slow or reluctant in the process.
How Insurance Companies Get Money To Pay For Rental Car
Insurance companies are responsible for paying for a rental car when an insured’s vehicle is being repaired. Through rental reimbursement, if an insured experiences a collision and the other driver is at fault, they need to contact the other driver’s insurance company and file a claim.
Even when there’s a delay in making the rental car available, the insured can get the rental cost from their insurance company and then seek reimbursement from the driver’s insurer.
Will Insurance Pay For Rental Car During Repair?
Yes, the insurance company will pay for the rental car during repair. The rental reimbursement coverage will encompass the cost of a replacement rental car. An insured can get a rental car for usage until their vehicle is completely repaired.
Insurance companies sometimes try to play dumb and refuse to pay for a rental car when an insured suffers from a collision. During this situation, an insured must consider and make some necessary efforts to make a claim.
One can consider either of the options mentioned earlier whenever this happens. We hope this article provides enough details on what to do if an insurance company refuses to pay for a rental car. Kindly visit our comment section for your views and opinions.
Below are frequently asked questions and answers on what to do if an insurance company refuses to pay for a rental car.
What Is It Called When An Insurance Company Refuses To Pay A Claim?
Bad faith insurance is when an insurance company refuses to settle a claim.
Does At Fault Driver Pay For Rental Car In California?
Yes, an at-fault driver can pay for a rental car in California.
Why Do Insurance Companies Try Not To Pay?
Insurance companies try not to settle a claim because they intend to profit. Insurance companies value their profits and will do anything to see them increase. As a result, they may cause some delays or denial of a claim.
Do Insurance Companies Try To Trick You?
Sometimes, an insurance company tries to trick its client’s into believing that a specific settlement is due and enough for them.
Can I Sue My Insurance Company For Emotional Distress?
Yes, you can sue your insurance company for emotional distress.
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