Rental cars are very convenient to have access to because they keep you from putting the wear and tear of traveling on your own car. They are also great for those who do not have a car that will survive lengthy trips. But there is one thing that has to be considered and that is the fact that accidents do happen. What happens if you are rear-ended in a rental car and you're not at fault? Are you responsible for the damages or is the person who was at fault? Does the car rental company take care of it? What happens? These are all excellent questions because it can be quite confusing when an accident occurs.
It is also a good idea to get answers to any questions you have when you rent the car. It is not enough to hope that you do not get into an accident. When it is not your fault, that means you had no control over what happened. You could not have prevented it in any way. The only actions that you can prevent are your own, so make sure you receive the necessary information from the car rental company regarding what to do in case of a crash.
Insurance
Your individual insurance should cover you while in a rental car. That is why the rental car company requests that you prove your insurance. They like to have copies of your insurance card in case there is an accident. However, it is fair to assume that they do this in case the accident is your fault and they need to make a claim on your insurance to cover the damages.
When asking the car rental company about how it would work if you're in a wreck that isn't your fault, they may tell you to consult with your insurance company. Being that you're covered by your individual insurance, you are subject to their particular rules and regulations.
What to do in an accident
So what are you to do in the case that you are rear-ended in a rental car? Be sure you call your insurance company before you do a single thing. If the rental car company says that you owe them money, don't just pay up. Make sure you talk to your insurance company first. They will tell you what to do. They will most likely take the claim and then submit it to the insurance company of the individual who caused the crash. That way the damages are paid to the rental car company. If any deductibles need to be paid, then you'll pay that deductible to your insurance company and not the car rental company. There shouldn't be any reason why you would have to pay them any money for a crash that wasn't your fault. It also depends on what your insurance policy says about wrecks when you're in a rental car.
So make sure you know these things before renting a car. That way you'll know exactly what to do if you are rear-ended on the interstate. When being rear-ended it is obvious that it isn't your fault. Most rear-end accidents are considered the fault of the driver who hit you. So proving that the crash wasn't your fault is not a hard task at all. Just know your rights and have all of the information ready so that you don't panic if you're in a wreck. Don't start running crazy scenarios through your head such as having to pay the entire cost of the rental car. That is something very unlikely. Just be sure to call the police and take insurance information from the driver at fault just like you would if it were your own car.
Fire damage insurance
Every home must have homeowners' insurance. This is a contract between you and the insurance company where, in exchange for a monthly premium that you pay, the insurance company will pay you back for damage that occurs to your home. In the event of a fire in your house, for example, you would file a claim with your insurance company and depending upon the type of policy you have, the company will verify your claim, put a value on the damage, and pay you the amount to repair or rebuild your home.
Parts of the fire damage insurance policy
The fire damage insurance policy covers four parts:
1) dwelling, which means the structure where you live - your house; 2) other structures, which means your garage, pool, or any other structure that is located within your property but is not part of your dwelling place; 3) personal property, which means your belongings and the contents of your house; and 4) loss of use or additional expenses, which refer to expenses such as the cost of staying in temporary housing, your clothing and food, or any type of expense that you have to incur while living away from your home while it is being rebuilt or repaired.
Types of payout
Insurance companies usually pay out losses according to two kinds of values: actual cash value or replacement value.
Actual cash value (ACV) is amount that the insurance company will pay you, corresponding to the fair market value of your property at the time of the fire damage. Fair market value is the amount a willing buyer would pay a willing seller for the property just before the destruction.
Replacement value is the full value of what it will cost for you to be able to repair or rebuild your home, specifically the structure.
Usually, insurance companies will pay you the actual cash value for personal property inside your home, computed according to the value after depreciation. If the items have to be replaced, the company will pay you for the difference.
Generally, replacement value is preferable to actual cash value because replacement value allows you to repair or rebuild, while actual cash value will reflect an amount that may be far less than the replacement value.
Less common types of payout
In addition to the replacement value and actual cash value, insurance companies may pay out fire damage insurance claims according to the following computations. These types are no longer common, so check with your insurance company to see if this is valid for your policy.
An extended replacement coverage is a payout that will allow you to replace your fire-damaged property at current prices, even if the cost exceeds your policy limits. Usually, this is computed at a percentage of your policy amount.
Guaranteed replacement value is the amount equivalent to the full cost of replacing your home, regardless of policy limits. Most companies hardly do this anymore.
In some states, fire damage insurance policies include A1/A2 policies, where the amount of payout is computed according to the quality of materials to be used for rebuilding or repair. For A1 policies, your home would be repaired or rebuilt using the same quality of materials that it had before, and for A2 policies a lesser quality of materials would be used. This type of insurance is no longer common.
Review your policy
It is important that you review your fire damage insurance policy to know what is covered, the amount of your coverage, what is included and excluded, as well as the procedures and deadlines for filing your claim. Read the fine print, and before you sign anything make sure you understand it thoroughly.
Both Amy Nutt & Evie Parrish are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Amy Nutt has sinced written about articles on various topics from Culture and Society, Recreation and Sports and Women. Offers a wide variety of and for all your vehicle rental. Amy Nutt's top article generates over 368000 views. to your Favourites.
Evie Parrish has sinced written about articles on various topics from Home, Oral Hygiene and Home. Evie Parrish is an homeowner advocate for and. Evie Parrish's top article generates over 49500 views. to your Favourites.