Who Pays and How Long in New Jersey?
Being without your vehicle after a crash can be one of the most disruptive parts of an accident. Fortunately, New Jersey law and your insurance policy may provide rental car coverage while your vehicle is being repaired or replaced. This article explains who pays, how long coverage lasts and how to avoid surprise costs.
Who is responsible for your rental car?
After a crash, responsibility for paying for a rental vehicle depends on fault and insurance coverage.
- At‑fault driver’s insurer: New Jersey law requires the at‑fault driver’s insurance company to reimburse the victim for the cost of renting a carlynchlawyers.com. However, the insurer doesn’t have to start paying until it is reasonably clear their policyholder is responsiblelynchlawyers.com.
- Duration of coverage: The liable insurer must cover rental costs only for the period when the vehicle is being repaired, or until the claim is settled if the vehicle is a total losslynchlawyers.com.
- Your own policy: If liability is contested or you were at fault, rental reimbursement depends on whether you purchased rental coverage. Many policies offer this as an optional add‑on. It typically provides a daily dollar limit for a certain number of days. Check your declarations page or call your agent to confirm if you have this coverage.
What happens if the at‑fault insurer delays payment?
Insurers can delay approving rental reimbursement until fault is determined. In practice, you may need to pay for the rental upfront and seek reimbursement later. Keep all receipts and maintain communication with the adjuster. If you have rental reimbursement on your own policy, your insurer may cover the cost initially and then pursue repayment from the at‑fault driver’s insurer through subrogation (see Article 5).
How long will your rental be covered?
The length of rental coverage depends on the repair timeline or total‑loss settlement:
- For repairs: Coverage typically lasts until the repairs are complete and the vehicle is ready for pick‑uplynchlawyers.com. Ask your repair shop for an estimated completion date and share it with the adjuster.
- For total losses: If your vehicle is declared a total loss, rental reimbursement may continue only until the claim is settledlynchlawyers.com. This can be a shorter period than the time it takes you to purchase a replacement vehicle, so plan accordingly.
Insurers are not required to provide a rental car that is identical to your own. They must reimburse you for a vehicle of similar type and price range; if they set a daily rate, they must tell you where you can rent a car at that pricelynchlawyers.com. Upgrading to a luxury model or keeping the rental longer than authorized can result in additional out‑of‑pocket costslynchlawyers.com.
Tips for navigating the rental car process
- Report the claim promptly: Notify your insurer and, if another party is at fault, their insurer. The sooner claims are reported, the sooner rental arrangements can be made.
- Ask about daily limits: Clarify the dollar amount your policy or the at‑fault insurer will cover and the maximum number of days. If the rental company’s rate exceeds the limit, you may have to pay the difference.
- Choose a comparable vehicle: Insurers will typically pay for a vehicle similar to the one damaged. Opting for a much larger or more luxurious model could lead to extra costslynchlawyers.com.
- Keep receipts: Save rental agreements and fuel receipts. You’ll need them for reimbursement.
- Return on time: Coverage ends when repairs are finished or the claim is settled. Returning the rental late can result in charges you must paylynchlawyers.com.
- Consider additional coverage: Rental companies offer supplemental insurance. If your own auto policy covers liability and collision on rental vehicles, you may not need to purchase extra coverage, but verify with your insurer.
What this means for you
- If another driver is at fault, their insurer should reimburse your rental costs once liability is establishedlynchlawyers.com.
- If liability is unclear or you are at fault, rental reimbursement depends on whether you purchased rental coverage on your policy.
- Coverage generally lasts only as long as your car is being repaired or until the claim is settledlynchlawyers.com.
- Keep all documentation and communicate with the adjuster to avoid delays and unexpected bills.
A final word
A rental car eases the inconvenience of being without your own vehicle, but understanding who pays and for how long prevents unwelcome surprises. Bridgewater Collision & Repair works closely with insurers — both through DRP partnerships and independently — to minimize downtime. We can help coordinate rental arrangements and keep you informed about repair timelines so you know exactly when to return your rental. If you have questions about rental car coverage or need guidance after an accident, a knowledgeable collision repair professional can explain your options.