Rental Reimbursement

What is the name of your state? CA

Whats the law in CA regarding rental reimbursement costs? Basically was hit by an at fault driver, his insurance said he was liable and is paying for the damage and a rental. They sent me some outrageously low number like $20 / day is the average cost for a rental where I am I almost laughed myself out of my seat.

I was told elsewhere that perhaps in CA I must be reimbursed for an auto that is equivalent to the one that is being replaced, is this the case, where can I find information on what the cost per day that is equal to? As well where can I find this law or regulation referenced? I know its not $20.

michin said:

I know its not $20.

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Wanna' bet??

No I wouldn't, advice would be fine though.

I'll assume by your remark you think it is $20, what do you base that number on?

Not sure where you live but where I live $20 wont get you a rental car. A bicycle perhaps.

michin said:

What is the name of your state? CA

Whats the law in CA regarding rental reimbursement costs? Basically was hit by an at fault driver, his insurance said he was liable and is paying for the damage and a rental. They sent me some outrageously low number like $20 / day is the average cost for a rental where I am I almost laughed myself out of my seat.

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If that is all they are willing to give, than that is all you will get

michin said:

I was told elsewhere that perhaps in CA I must be reimbursed for an auto that is equivalent to the one that is being replaced,

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Your friends are incorrect... Car rental companies are NOT the same company as insurance companies. They are completely different... A rental company is NOT LEGALLY required to provided anything to you... The insurance company is required to provide you a car NOT the rental company... Insurance companies provide a contract to the rental company who in turns decides whether or not to provide one.

There is NO legal law requiring a rental company to provide an "identical" or "equivalant" vehicle. All they need to provide is a working vehicle... If that so happens to be a Yugo, than you get a Yugo...

Additionally, a lot of rental companies will only give you a vehicle based on need. For example, you have a yukon, another woman has a minivan with three kids. On site at the rental company is a Yukon and a Dodge Caliber... Guess who's getting the Yukon, not you! Based on need, the woman with three kids is getting the yukon!

Perhaps the question was misunderstood or I didnt explain it properly, the quality or type of car is not in question, the question refers to the amount per day to be given for a rental for compensation.

I understand the rental companies are different from the insurance companies and I dont expect a rental company to have every car known to man, I can only get what they have.

Now the friend I spoke to isnt a friend, it was my unsurance company telling me that in california the liable parties insurance must offer me an amount equal per day to what class my car is in. After my insurance looked it up in a table this amount calculated to $80 / day.

So is someone lying?

michin said:

So is someone lying?

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Lying? No.
Mistaken or confused? Yes.
If your rental car company is offering you an $80 per day car.... get your car through them and let them go after the other driver.

ok fair enough, that seems to be the easiest route to take. Thanks.

$80 a day car rental? What car are you trying to rent? What kind of car was damaged?

Damaged car is a 2005 Mercedes S500

Reason why I decided to come on here and ask some questions is because I got a letter from the liable driver's insurance company that stated because their client is liable they we provide money for a rental and that the average cost to rent a car is $20 a day.

I called my insurance company to see how I should proceed (either rent and send the bill to my insurance or contact the other insurance company to see if they have a relationship wtih a rental company they would like me to use where they could be billed directly.

This is when my insurance company told me that in CA I am able to receive a rental reimbursement amount in relation to the class of vehicle that was damaged. After looking this up on a table, they concluded this amount is roughly $88/day.

It could very well be that this is not a standard, but merely a table my insurance company looks at and in their mind this should be my reimbursement from the other driver's carrier.

Here is a link to the CA insurance code:
http://www.leginfo.ca.gov/.html/ins_table_of_contents.html

I don't fnd what you are looking for. Sorry.

hmm ok its not the insurance company's obligation to cover this type of loss of use, it is the liable driver who is responsible to pay for loss of use damages. My insurance company was just informing me of my loss of use amount per day they can obtain based on the incident and the car I drive.

By the way the other person was convicted of Misdemeanor hit and run as well.


"California law provides that a person is entitled to recover all damages arising from bodily injury or property damage proximately caused by the negligent conduct of another person. In addition, you are also entitled to recover damages arising out of the intentional conduct of others. Losses may be either economic or economic. Non-economic losses may include pain and suffering, loss of range of motion, loss of consortium, loss of enjoyment of activities and loss of enjoyment of one's profession. Economic losses may include: medical bills, wage loss, the reasonable value of gratuitous home health care services, and loss of use of your vehicle."

Notify the other carrier that you need to rent a Benz S500 and if they have a contract with a rental agency that will provide such a car and that they will pay for the rental while your car is being repaired. If they balk, you can either rent through your own carrier or pay the rental yourself and then seek reimbursement by suing the other driver in small claims court.