In this guide
Who pays for your rental car
When another driver causes the crash, their liability insurance pays for your car — and in most states, for the time you’re without it. Texas’s Department of Insurance says it plainly: if another driver caused your accident, that driver’s insurer will pay for you to rent a car. Illinois puts it in a regulation: once liability is reasonably clear, the insurer must pay the reasonable cost of a rental, in proportion to its share of the liability, if you submit and back up the claim.
Not every state requires it. North Carolina’s Department of Insurance says no statute or administrative rule requires an insurer to offer a rental car — it’s common practice. And the other driver’s insurer usually won’t pay anything until it accepts that its driver was at fault. Meanwhile, the money can come from your own policy:
- Rental reimbursement coverage, if you bought it. It pays a set amount a day, up to the policy’s limit, for the time your insurer considers reasonable to repair or replace your car.
- Uninsured motorist coverage, if the driver who hit you had no insurance or not enough, or drove off. Texas lists both as reasons your own insurer pays for a rental — see when the other driver had no insurance and who pays after a hit-and-run.
- Collision coverage, for the repairs, if the other insurer won’t pay. Your insurer will then probably try to collect from the other driver’s insurer.
How long the insurer pays
For the time it reasonably takes to fix your car. In Texas’s description, the insurer judges that from the number of labor hours on the repair estimate, and may extend the rental if the shop has to order parts or finds more damage — so tell the adjuster about every delay. Illinois’s insurance department describes the limit as the time it would normally take to repair your car, or until the insurer makes you an offer for it.
One formula for turning labor hours into days, described in a 50-state survey by the law firm Matthiesen, Wickert & Lehrer:
- Divide the labor hours by 4 — the average number of hours a car is worked on in a day.
- Add 2 weekend days for every 5 repair days, assuming the repair starts on a Monday.
- Add 3 days to get an estimate, take the car to the shop and pick it up.
The survey’s own example — a 26-hour estimate and a $100-a-day rental:
| 26 labor hours ÷ 4 | 6.5 days |
| Weekend days | +2 days |
| Estimate, drop-off and pickup | +3 days |
| Days without your car | 11.5 days |
|---|---|
| At $100 a day | $1,150 |
If your car is totaled, the clock works differently. Texas says the insurer might stop paying for the rental a few days after telling you the car is a total loss, and Illinois describes the rental as running until the insurer makes an offer on the car. Whether you can claim more — loss of use for the time it takes to buy a replacement — depends on the state.
No rental? You can still claim loss of use
Loss of use is the legal name for the value of being without your car. Courts usually measure it by what it would cost to rent a similar car, and in 7 of the 10 states below they’ve allowed it even when the owner didn’t actually rent one. Connecticut’s insurance department requires insurers to pay loss of use on these claims once liability is reasonably clear, whether or not you rented a car. Illinois’s regulation, by contrast, covers costs incurred in renting another car — so keep every receipt.
Loss of use in 10 states
| State | Car in the shop | Car totaled | Do you have to rent? |
|---|---|---|---|
| California | Yes — the cost of renting a similar car for the time you’re without yours (CACI No. 3903M; Reynolds v. Bank of America (1959); Malinson v. Black (1948); Metz v. Soares (2006)) | Yes the jury instruction covers the time reasonably needed to repair or replace | No — but you must show you were using, or meant to use, the car |
| Texas | Yes — the reasonable rental value of a substitute for the repair time (Luna v. North Star Dodge Sales (Tex. 1984); J & D Towing v. American Alternative Ins. (Tex. 2016)) | Yes for the time reasonably needed to get a replacement | No |
| Florida | Yes — the reasonable rental value of a substitute during repairs, even for a car used only for pleasure (Meakin v. Dreier (Fla. 2d DCA 1968); Wajay Bakery v. Carolina Freight Carriers (Fla. App. 1965)) | Yes allowed by an appeals court | No |
| New York | Yes — the fair market rental value (Franjo Transp. v. B & K Fleet Serv. (1996); Allanson v. Cummings (1981); Horton v. State (1966)) | Yes for a reasonable time to get a replacement | No |
| Pennsylvania | Yes (Nelson v. Johnson (Pa. Com. Pl. 1970)) | Yes for the time needed to get a working replacement (a trial-court decision, not binding statewide) | No — reasonable expenses count even if not paid out (same decision) |
| Illinois | Yes — the reasonable rental value for the time needed to repair (Fairchild v. Keene (Ill. App. 1981); Latham v. Cleveland, C., C. & St. L. R. Co. (1911)) | Unsettled a 1911 decision said no; a 1981 appellate decision lists loss of use for the time needed to replace | No, with credible evidence of the rental value |
| Ohio | Yes — for the reasonable time needed to make repairs (Hayes Freight Lines v. Tarver (Ohio 1947); Indorf v. B.J. McAdams (Ohio App. 1982)) | No once you’ve recovered the car’s full value | Not settled; the cost of a rental is the preferred measure |
| Georgia | Yes — but for a repairable car, the total with loss of use can’t exceed the car’s value before the crash (Atlanta Furniture Co. v. Walker (1935); Firestone Tire v. Jackson Transp. (1972); Boral Bricks v. Old South Transp. Mgmt. (1991)) | No | Not decided by the courts |
| North Carolina | Yes — the cost of renting a similar car for the time you were necessarily without it (Roberts v. Pilot Freight Carriers (N.C. 1968)) | Yes for a reasonable time to get a replacement | No |
| Michigan | Limited — under the no-fault law, a claim against the at-fault driver for vehicle damage is capped at $3,000 not covered by insurance (the “mini-tort”) (MCL 500.3135(3)(e), (4)(a); Andries v. Everitt, Metzger, Flanders Co. (1913)) | Limited the same $3,000 cap | Not settled |
From each state’s court decisions as summarized in Matthiesen, Wickert & Lehrer’s 50-state survey (updated July 2026); Texas’s total-loss rule from the Supreme Court of Texas opinion. Some of these decisions are decades old and are still the latest word.
What state rules say about the insurer
- Texas: State guidance: the other driver’s insurer pays for a rental for the time it considers reasonable for repairs, based on the labor hours in the estimate, and may stop a few days after telling you the car is totaled.
- Illinois: Regulation: once liability is reasonably clear, the insurer must pay reasonable rental costs in proportion to its share of the liability, for the normal repair time or until it makes an offer on your car. If it pays a flat daily rate, it must tell you where you can rent for that amount.
- North Carolina: State insurance department: no statute or rule requires an insurer to offer a rental car, though it’s common practice.
- Michigan: The statute speaks of damage “to a motor vehicle” and doesn’t mention rentals, so look first to your own policy’s rental coverage.
Two states put deadlines and duties on insurers
Louisiana. If an insurer’s inaction in settling your claim leaves you without your car for more than five business days, it must pay reasonable costs of other transportation for the whole time you’re without it, to the extent it’s legally responsible. If it doesn’t pay within 30 days of written proof and a demand, and the failure is arbitrary, capricious or without probable cause, it also owes a penalty — 10% of those costs or $2,500, whichever is greater — plus attorney fees. If you have rental coverage on your own policy, your insurer has three business days after your written request to provide the rental.
Connecticut. The state’s insurance department told insurers in 2007 that loss of use is part of property damage and that they must undertake to pay it on claims against their drivers once liability is reasonably clear — offering a rental or talking about loss of use isn’t enough.
If you were driving a rental car when you were hit
The at-fault driver’s insurer is still the one that should pay — for your injuries and for the damage to the rental car. But the rental company may bill you first under your rental agreement, including for its own loss of use and fees. Some states limit that: in New York, a rental company can’t recover its loss of use or related administrative fees from an authorized driver or the driver’s insurer, and a driver’s liability for damage can’t exceed the lesser of the repair cost or the car’s fair market value. Check your rental agreement, any damage waiver you bought, and your own auto policy — Texas’s insurance department says most policies cover accidents while you’re driving a rental car.
How to get every day covered
- Report the claim to the other driver’s insurer and get a claim number.
- Ask, in writing, whether it accepts liability, how many rental days it approves, and at what daily rate.
- Rent a car similar to yours and keep every receipt. If you don’t rent, keep a log of each day without a car and a quote for a similar rental.
- Get the repair estimate early and send it to the adjuster — the labor hours drive the rental period.
- Tell the adjuster about each delay: parts on order, more damage found.
- In Illinois, if the insurer pays a flat daily rate, ask where you can rent for that amount — it has to tell you.
- Return the rental when your car is ready. Days beyond what the insurer approved may end up on your bill.
Loss of use is part of the property damage claim, which has its own filing deadline — the claim deadline calculator shows property damage deadlines by state.
Frequently asked questions
Does the at-fault driver’s insurance have to pay for my rental car?
In most states, the driver who caused the crash is responsible for the time you’re without your car, and their liability insurer pays that claim — usually as a rental while repairs reasonably take. Illinois writes it into a regulation once liability is reasonably clear. North Carolina’s insurance department notes that no statute requires an insurer to offer a rental, though it’s common practice. Until the insurer accepts fault, your own rental coverage, if you have it, can pay.
How long will insurance pay for a rental car after an accident?
For the time it reasonably takes to repair your car, usually counted from the labor hours on the repair estimate, with extensions for parts delays or newly found damage. One formula counts 4 labor hours as a day, then adds weekends and 3 days for the estimate, drop-off and pickup. If the car is totaled, the rental usually ends much sooner.
How long can you keep a rental car after a total loss?
Usually not long. Texas’s insurance department says the insurer might stop paying for the rental a few days after telling you the car is a total loss, and Illinois describes the rental as running until the insurer makes an offer on the car. Whether you can claim more — loss of use while you find a replacement — depends on the state.
Can I get paid for loss of use if I didn’t rent a car?
In 7 of the 10 states we checked, courts have allowed it, measured by what a similar car would cost to rent: California, Texas, Florida, New York, Pennsylvania, Illinois and North Carolina. Connecticut’s insurance department requires insurers to pay loss of use on these claims even if you didn’t rent.
What kind of rental car am I entitled to?
Courts measure loss of use by the cost of renting a similar car. Insurers often pay a set daily amount instead. In Illinois, an insurer that pays a flat daily rate must tell you where you can rent a car for that amount, and the state’s insurance department says it doesn’t have to pay for the same type if yours is a specialty vehicle.
Who pays for my rental if the other driver had no insurance?
Your own policy, if you have the right coverage. Texas’s insurance department lists uninsured/underinsured motorist coverage — when the driver who caused the crash had no insurance or not enough, or it was a hit-and-run — and rental reimbursement coverage. Otherwise you would have to collect from the driver directly.
Reviewed by
Morgan Hale, Editor. Writes about the financial side of injury claims — fees, liens, timelines and state rules — and checks every page against its sources before it’s published. Not a lawyer; “Morgan Hale” is a pen name. Editorial policy · How we calculate
Sources
- Auto insurance guide — Will the insurance company pay for a rental car? (period based on labor hours; may end a few days after a total loss) (Texas Department of Insurance)
- 50 Ill. Adm. Code 919.80(d)(2) — Loss of use in automobile property damage liability claims (Cornell Legal Information Institute (Illinois Administrative Code))
- Filing a Claim with Another Driver’s Insurance Company (rental reimbursement, period, specialty vehicles) (Illinois Department of Insurance)
- FAQs About Auto Insurance (“do I get a rental car while mine is being fixed?”) (North Carolina Department of Insurance)
- J & D Towing, LLC v. American Alternative Insurance Corp., 478 S.W.3d 649 (Tex. 2016) — loss of use for totally destroyed property (Supreme Court of Texas (via FindLaw))
- Michigan Compiled Laws § 500.3135 — Tort liability limits under no-fault (noneconomic loss threshold; up to $3,000 vehicle damage) (FindLaw (Michigan Insurance Code))
- Bulletin CL-1-07 — Loss of use on third-party automobile property damage claims (July 20, 2007) (Connecticut Insurance Department)
- La. R.S. 22:1892(B)(4) — Alternative transportation for third-party claimants; rental for first-party claimants (Louisiana State Legislature)
- Ga. Comp. R. & Regs. 120-2-52-.07 — Loss of use (rental reimbursement coverage) (Cornell Legal Information Institute (Rules of the Georgia Commissioner of Insurance))
- N.Y. General Business Law § 396-z(6) — Rental companies: renter liability for damage; loss of use not recoverable from authorized drivers (New York State Senate)
- Loss of Use in All 50 States (third-party loss of use; last updated July 21, 2026) (Matthiesen, Wickert & Lehrer, S.C.)
Not legal or financial advice. InjuryMath is not a law firm and does not sell or broker funding. This page gives general information based on the sources listed; your contracts and your state’s law control. For advice about your situation, talk to a licensed attorney in your state.