Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.
Detailed Answer
After an auto accident in Tennessee, the at-fault driver’s liability insurer typically covers your rental car or loss-of-use expenses up to the policy limit. When that limit is exhausted, you must look elsewhere to recover additional costs. Under Tennessee law, you have several options:
1. Use Your Rental Reimbursement Coverage
If you purchased rental reimbursement as part of your collision or comprehensive auto policy, it will pay a daily amount for a replacement vehicle until repairs are complete or your car is totaled. Review your policy’s daily and total caps, then submit your rental invoices directly to your insurer.
2. Claim Uninsured Motorist Property Damage (UMPD) Coverage
Tennessee law requires insurers to offer uninsured motorist property damage coverage up to the same limits as liability. If the at-fault insurer has no more funds, you can file a UMPD claim under Tenn. Code Ann. §56-7-1201. This covers damage to your vehicle and reasonable loss-of-use expenses, subject to your policy limits. Learn more at Tenn. Code Ann. §56-7-1201.
3. Pursue a Direct Claim Against the At-Fault Driver
If both your rental reimbursement and UMPD are insufficient, you can sue the at-fault driver personally for excess rental costs or loss of use. In Tennessee, “loss-of-use” damages require proof of actual expense. Provide daily rental rates, contract dates, and documentation of your diligent efforts to return the car promptly.
4. Consider an Umbrella or Excess Liability Policy
An umbrella policy extends your liability coverage above the at-fault driver’s limits. If you carry excess liability or personal umbrella insurance, file a claim for additional compensation to cover unmet rental or loss-of-use expenses.
Documenting Your Claim
To maximize recovery:
- Save every rental agreement, invoice, and payment receipt.
- Keep a mileage log and notes on any delays returning the vehicle.
- Notify each insurer in writing immediately after the policy limits are reached.
- Maintain emails or letters evidencing your efforts to minimize rental days.
Helpful Hints
- Review your own auto policy for rental reimbursement and UMPD limits before an accident.
- Communicate in writing—letters or email—to establish a clear timeline.
- Confirm with your insurer whether they require preapproval for extended rental periods.
- Document all repair-shop delays to justify longer rental use.
- Seek an attorney if total expenses exceed your available coverage or if the at-fault driver is uninsured.