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Detailed Answer

When an at-fault driver’s policy limits are fully paid, you still have options to recover loss-of-use or rental car expenses under New Jersey law. Follow these steps:

1. Use Your Own Rental Reimbursement Coverage

If you purchased rental reimbursement or loss-of-use coverage as part of your auto insurance policy, file a first-party claim with your insurer. This optional coverage reimburses daily rental fees up to your policy limit. Check your declarations page for your specific limit. See N.J.S.A. 39:6A-4.

2. File an Underinsured Motorist (UIM) Claim

New Jersey requires insurers to offer Uninsured/Underinsured Motorist coverage. If limits on the at-fault policy are exhausted, your UIM coverage can cover additional loss-of-use or rental expenses. UIM bridges the gap between the at-fault driver’s paid limits and your total costs. See N.J.S.A. 17:28-1.1.

3. Sue the At-Fault Driver Directly

You can pursue the at-fault driver in civil court for excess damages beyond policy limits. In New Jersey, courts recognize loss-of-use as part of property damage and award daily damages based on reasonable rental rates. For case law guidance, see Marino v. Renfro, 307 N.J. Super. 1 (App. Div. 1998).

Disclaimer: This article is for educational purposes only and is not legal advice. Consult an attorney for guidance on your specific situation.

Helpful Hints

• Document all rental invoices and dates to support your claim.
• Review your insurance declarations page to confirm coverage and limits.
• Act promptly: many policies require notice of claim within a set period.
• Keep a copy of correspondence with both insurers and the at-fault party.
• Consult a personal injury attorney if you plan to sue beyond policy limits.