Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
When your insurance-provided rental reimbursement benefits end after a crash, you still need a way to keep moving. Under South Dakota law, rental reimbursement is an optional coverage provided by most auto insurers (see SDCL § 58-28, https://sdlegislature.gov/Statutes/Codified_Laws/58-28). Once your policy limit is reached or the rental period expires, explore these alternatives:
- Seek a Coverage Extension or Reimbursement from the At-Fault Driver: If another driver caused the crash, you can ask their liability insurer to cover additional rental days. If they refuse, you may file a claim for “loss of use” damages directly against the at-fault party. South Dakota allows you to recover out-of-pocket expenses for transportation while your vehicle was unavailable.
- Negotiate a Discounted Rate with the Rental Company: Contact your rental vendor to explain the situation. Some companies offer reduced daily rates for extended rentals, especially when they understand you’re waiting on an insurance settlement.
- Use a Courtesy or “Loaner” Vehicle: Many repair shops provide loaner cars at little or no cost while they fix your vehicle. Ask your collision repair facility if they participate in a courtesy program.
- Rideshare, Taxi, or Public Transit: For short-term needs, rideshare services, taxis, or local bus systems can be more affordable than continuing a rental. Compare mileage limits, surge pricing, and route schedules to pick the best option.
- Borrow from Family or Friends: Ask to use someone else’s vehicle until you settle your claim or obtain a replacement. Confirm that any borrowed driver is listed on the vehicle’s insurance policy to avoid coverage gaps.
- Upgrade Your Own Insurance: When you purchase or renew your policy, consider adding or raising your rental reimbursement limits. In South Dakota, insurers must offer this option but cannot force you to buy it (SDCL § 58-28, https://sdlegislature.gov/Statutes/Codified_Laws/58-28).
Helpful Hints
- Document all rental expenses and communications. Keep receipts and written quotes.
- Get any agreements in writing when negotiating with repair shops or insurers.
- Compare total costs: a low daily rental rate can still cost more than using rideshare or courtesy vehicles.
- Check your personal auto policy for any unused or overlooked benefits.
- Review your insurer’s “loss of use” provisions to understand how they calculate reimbursement.