What Options Exist for Arranging Transportation If Rental Coverage Ends After a Crash?
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. For advice on your specific situation, consult a licensed Tennessee attorney.
Detailed Answer
After a collision, many drivers rely on rental reimbursement coverage in their auto insurance policy to secure a temporary vehicle. In Tennessee, this coverage is optional and typically pays a daily limit (e.g., $30–$50/day) for a set number of days (often 30–45) or a maximum aggregate limit. If your rental coverage expires before your vehicle is repaired or replaced, you have several alternatives to arrange transportation:
1. Seek Loss-of-Use Reimbursement from the At-Fault Driver’s Insurer
Under Tennessee law, the at-fault party’s insurer may agree to pay for “loss-of-use” or reasonable transportation costs you incur while your vehicle is unavailable. Although not mandated by statute, many insurers consider these claims as part of your property damage claim. Present receipts and a rental invoice as proof of cost and duration. For guidance on your property damage rights, see Tennessee Code Annotated § 56-7-1201: https://law.justia.com/codes/tennessee/2022/title-56/chapter-7/part-12/section-56-7-1201/.
2. Use Alternative Transportation Expenses
If the insurer refuses to cover a rental, you can submit other reasonable transportation expenses—such as rideshare (Uber, Lyft), taxi fares, public transit, or parking and tolls—for reimbursement. Keep all receipts. Reasonable costs may be reimbursed if you negotiate with the at-fault insurer or as part of your collision claim.
3. Leverage Credit Card or Third-Party Rental Coverage
Many credit cards offer secondary rental car insurance when you use the card to pay the rental bill. Check your card’s terms for coverage limits and exclusions. Third-party organizations or memberships (e.g., AAA) may offer discounted or complimentary rentals.
4. Arrange a Courtesy or Loaner Vehicle
Some repair shops and dealerships provide a courtesy or loaner car while your vehicle is in the shop. Policies and availability vary by provider. Ask your repair facility if they offer a no-charge or low-cost loaner vehicle.
5. Borrow from Friends or Family
If feasible, arrange to borrow a vehicle from someone you trust. Check that you are insured to drive their car—Tennessee law extends liability coverage to permissive drivers under the owner’s policy (T.C.A. § 56-7-1201).
6. Negotiate in Settlement
If you cannot secure immediate transportation, document your efforts and expenses. When settling your property damage claim, include all reasonable transportation costs incurred due to the crash. A clear paper trail strengthens your position.
Helpful Hints
- Review your policy’s rental reimbursement limits and duration before a crash.
- Save all invoices, receipts, mileage logs, and communications with insurers.
- Discuss loss-of-use claims early with the at-fault insurer to set expectations.
- Verify credit card and third-party rental benefits in advance.
- Confirm coverage under the vehicle owner’s policy when borrowing a car.
- Keep a written record of denied rental coverage and insurer responses.