Lawsuit Investigation: Insurance Stopped Paying for Your Rental Car After a Total Loss?
Last Updated on May 15, 2023
At A Glance
- This Alert Affects:
- Anyone whose vehicle was declared a total loss and who received a letter or email from their insurance company or adjuster limiting the number of days that their rental car would be paid for.
- What’s Going On?
- Most auto insurance policies provide 30 days of coverage for a rental car when the insured vehicle is deemed a total loss, but attorneys working with ClassAction.org believe insurance companies may be cutting off consumers’ rental car payments too soon. They’re now looking into whether these insurers violated the terms of their policies and, if so, whether class action lawsuits can be filed.
- How Could a Lawsuit Help?
- A class action lawsuit could help policyholders recover money they should have been paid for rental car expenses.
- Which Insurers Are Under Investigation?
- The attorneys are looking into all auto insurance companies, including (but not limited to) State Farm, Geico, Progressive, Allstate and USAA
- What You Can Do
- If your insurance company notified you that it would only pay for your rental car for a limited number of days (less than 30) after your vehicle was totaled, fill out the form on this page to find out more about the investigation.
Attorneys working with ClassAction.org are looking to hear from people whose vehicles were deemed a total loss and who received a letter or email from their insurance company or adjuster stating that a rental car would only be covered for a limited number of days.
The attorneys have reason to believe that insurance companies may not be providing the full amount of rental car coverage stated in their policies in cases where a covered vehicle is declared a total loss – i.e., the insurance company determined that the cost of repairing damage to the vehicle would exceed its total value. Though most insurance policies provide a standard 30 days of coverage for rental car expenses, some policyholders have gotten letters or emails stating that their insurance only covers five or seven days – which may violate the terms of their insurance policies.
It’s now being investigated whether class action lawsuits can be filed against these insurance companies to help consumers get back any money they should have been paid for rental car expenses.
As part of their investigation, the attorneys need to hear from more people whose insurance stopped paying for their rental car after a limited number of days.
If you were notified by your insurer or adjuster that your rental car coverage would run out less than 30 days after your car was totaled, fill out the form on this page to share your story.
How Long Will Insurance Pay for a Rental Car After a Total Loss?
Most standard auto insurance policies state that if an insured vehicle is unavailable due to covered damage, the insurance company will provide alternative transportation, usually in the form of a rental car, until the vehicle is repaired or replaced. Policies generally provide reimbursement of rental car costs – sometimes called transportation expense, extended transportation expense or rental coverage – for a standard period of 30 days, and that timeframe can only be reduced if the insurer determines that a shorter amount of time is reasonable for the policyholder to obtain a replacement vehicle.
However, attorneys working with ClassAction.org have reason to believe that many insurance companies cut off policyholders’ rental car coverage much earlier than their policies’ 30-day limit without conducting any required analysis to determine how much time is reasonably needed to replace each totaled vehicle. In fact, policyholders sometimes receive form letters and emails stating that they have only five to seven days of rental car coverage after their vehicle has been deemed a total loss. It’s believed that the insurance companies uniformly set these shorter timeframes without ever looking into whether they are “reasonable,” which may violate the terms of their insurance policies.
Which Insurance Companies Are Under Investigation?
The attorneys are looking into all automobile insurance companies, including (but not limited to) State Farm, Geico, Progressive, Allstate, USAA, Liberty Mutual, Farmers, Nationwide, American Family and Travelers.
How Could a Lawsuit Help?
A class action lawsuit could potentially help consumers get back any money they should have received from their insurance company for rental car expenses. It could also possibly force insurers to provide the full amount of transportation expense coverage in their policies for future claims.
In fact, several lawsuits filed against insurance companies over their alleged failure to provide the full amount of rental car coverage have already resulted in settlements, with the affected consumers receiving money back for the amount of time that they were denied reimbursement of transportation expenses.
What You Can Do
If your vehicle was deemed a total loss and you received a letter or email from your insurance company or adjuster stating that your rental car expenses would no longer be covered after a limited number of days (less than 30), fill out the form on this page.
After you get in touch, an attorney or legal representative may reach out to you directly to ask you some questions and explain how you may be able to help the investigation. It costs nothing to speak with someone, and you’re not obligated to take legal action if you don’t want to.
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