Total Loss and the Rental Car Issue
This is a much disputed subject and one that insurance companies are capitalizing on. If you are hit and your car is declared a total loss, then how many days do you have to find or buy another auto? Many states allow for only 3 days! Finding a car in three days is a challenge even for an experience buyer.
Insurance companies have found other loopholes on the state’s legislature. Most state statues read that the rental car should be terminated after the vehicle was deemed a total loss. That means that the day they believe the car is a total loss, they will call you and tell you “your car was a complete loss, you have three days from today to find a car”.
What is wrong with this?
You have three days to find a vehicle and they have not agreed to a value. In fact, they have not even given you a dime to go buy car!
Some states like Montana are more protective of the customer and allow for 3 days after the payment reaches the insured’s or claimant’s destination. However, Montana belongs to small minority. Some other states like Texas only allow for one day for rental coverage after they call you and give you the news.
Read more about Total Loss and Rental Charges.
Get a great E-book regarding the Total Loss Process
