After car accident;can I rent a car from private party and be reimbursed for that from auto insurance company?
Question:
Answer:
No, this will not be acceptable. You must rent from an approved vendor for reimbursement to take place. You can however, with some companies, get a portion of your rental reimbursement for NOT using your rental car reimbursement funds. S/F, for example, will pay $30/day for a car, but you can get $10/day cash in hand for NOT using the coverage.
No you have to use a rental company that the insurance company is ok with. If they don't have specific companies that you have to use you still have to use a company otherwise the insurance company won't honor it and you won't get your money back
An auto insurance company will not reimburse your rental cost if you rent a car from a private party. Actually, they don't even reimburse you in certain cases even if you rent a car from a rental car agency. That can happen if such an agency is not on their approved list of vendor.
The best thing is to contact your insurance company. Negotiate everything upfront with them. Go to one of their approved rental car agency. They will pay everything.
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I believe each state has different regulations on what is approved for rental and not. If you have actually been charged an amount from your friend and their is documentation that the transaction took place, I would think that would be acceptable, as long as it is the same typical amount that the company would pay to another rental company or less. But I would check again with the adjuster's supervisor to make sure. Many companies will cash people out - you never know for you could have an inexperience adjuster that is just not familiar with this type of procedure. But I have paid many customers money that have been charged by a private person to rent a car, it just has to be proven that you were actually charged an amount, and not just pocketing the money.
depends on the insurance company, but generally no.
the insurance company does this (has a list of approved rental car companies) to prevent fraud - basically you could make up a rental car company, "charge" some outrageous rental fee, (which you don't really have to pay since the "rental company" is really you or your friend) and get reimbursed from insurance.
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