I was hit by a person driving a rental car and she was at fault. Her insurance and the rental car company’s insurance both say the other insurance provider is supposed to pay for my damages. So, I am stuck in the middle with both refusing to pay. Who should pay? Will I have to go through my insurance (I am trying to avoid this)?

  1. 447 POINTS
    Thad Bynum
    Owner/ Partner, Bynum Insurance Agency, Inc, Clayton, GA
    The person that caused the damage to you is responsible for your repairs. I am sure that the rules are different from state to state but in Georgia the primary coverage would come from the at fault person's own insurance and the rental company would be secondary at best. If you have physical damage coverage it would probably benefit you to file with your own carrier and let them subrogate to collect from whoever they can. Of course, doing this would cost you a deductible until the money is collected. If you don't have physical damage coverage your only recourse would be to file against their insurance. You should be able to determine who it is from the police incident report. Good luck.
    Answered on January 10, 2017
  2. 730 POINTS
    Darald Novak AAI
    Retired Agent and Broker, Self Employed, Albany NY USA
    Depending on the state's "financial responsibility laws" the vehicle insurance would usually be primary (insurance covering the vehicle registration is primary in most states) and any insurance policy the driver may be considered an "insured" under would usually be excess over the vehicle coverage. When someone signs the vehicle rental contract, they become liable for any damage that may occur to the rental vehicle along with a host of other types of economic losses to the vehicle. The rental vehicle carrier and the driver's insurance carrier could argue and/or litigate their positions for months or years. "Who should pay?" is not really important at this point in time - getting your vehicle repaired and back on the road is your major concern. That's why intelligent buyers of insurance carry physical damage coverages. This gives you the choice to expedite the repairs to your vehicle by requesting your carrier process a collision claim. This is assuming you carry collision coverage on your vehicle.) Let your carrier's claims experts handle the situation - you did buy insurance from a carrier you trust, correct? Your carrier's claims representatives will be able to explain their claims procedures as well as their subrogation process.
    Answered on January 24, 2017
  3. Did you find these answers helpful?

Add Your Answer To This Question

You must be logged in to add your answer.

<< Previous Question
Questions Home
Next Question >>