Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.
Detailed Answer
When your auto insurer’s rental-car coverage ends after a crash in Minnesota, you still have several avenues to secure alternate transportation.
1. Request an Extension from Your Insurer
Insurers sometimes grant a short-term extension if your vehicle remains in the shop. Contact your adjuster and explain any repair delays. Document all communications and keep copies of repair estimates.
2. Claim “Loss of Use” Benefits under Minnesota No-Fault
Under Minnesota’s no-fault law, you can recover reasonable rental expenses as a “loss of use” benefit. Minn. Stat. § 65B.49 provides for reimbursement of the actual cost of renting a substitute vehicle, up to a reasonable daily rate. Insurers generally cap this benefit at $20 per day and $600 per accident, but you may negotiate a higher rate if you show comparable rental rates in your area.
3. Personal Injury Protection (PIP) Transportation Expenses
Personal Injury Protection (PIP) may cover additional transportation costs, such as taxi, rideshare, bus or train fares. Minn. Stat. § 65B.46 outlines that insurers must reimburse reasonable transportation expenses up to statutory limits (typically $20 per day for up to 30 days). Save all receipts and submit them promptly.
4. Transportation Network Companies and Public Transit
If rental benefits are exhausted, consider rideshare services (Uber, Lyft), taxis or municipal transit. Track your mileage and fare, and store receipts if you plan to seek reimbursement, whether from PIP benefits or at-fault driver’s liability carrier.
5. Car-Sharing Services and Peer-to-Peer Rentals
Platforms like Zipcar or Turo offer flexible short-term rentals by the hour or day. Rates can be competitive, especially for brief needs. Review insurance and damage policies before booking.
6. Borrowing a Vehicle
Borrow a car from a friend or family member. Verify whether your insurance policy extends liability and comprehensive/collision coverage to permissive drivers (Minn. Stat. § 65B.43 ).
7. Repair Shop Loaner Vehicles
Some body shops provide complimentary or low-cost loaner cars while they repair your vehicle. Ask your repair facility about availability, any age or driving restrictions, and any fees or insurance requirements.
8. Out-of-Pocket Rental
If other options fail, rent directly from an agency. Compare daily and weekly rates online, check for discount codes, and read insurance add-on options carefully to avoid unexpected costs.
9. Addressing Insurance Bad Faith
If your insurer unreasonably denies an extension or reimbursement, you can file a complaint with the Minnesota Department of Commerce (https://mn.gov/commerce) or consult an attorney about bad-faith claims under Minn. Stat. § 72A.20.
Helpful Hints
- Keep all repair orders, rental agreements and receipts. Proper documentation strengthens reimbursement claims.
- Review your policy’s declarations page to know daily limits and total caps for rental and loss-of-use benefits.
- Submit all expense claims in writing, and follow up in writing if you don’t receive a timely response.
- Use a mileage log if you drive a rental or borrowed vehicle for both personal and crash-related trips—only crash-related miles are reimbursable.
- Compare multiple car-sharing and traditional rental providers for the best rate and insurance terms.
- Be proactive: Contact your insurer early about rental extensions to prevent unexpected transportation gaps.