Understanding Rental Charges Coverage and Potential Extra Costs Explained

Faultless Cars
6 days ago
2 min read

Updated: 18 hours ago

When you're involved in an accident that isn’t your fault, dealing with insurance and rental car arrangements can feel overwhelming. It’s essential to know how rental charges function and what your insurance will take care of to prevent unaffordable expenses. This guide aims to clarify rental charges, what’s typically covered by the at-fault insurer, and when you might encounter additional costs.

What Are Rental Charges?

Rental charges are the fees associated with borrowing a vehicle while yours is being repaired or replaced after an accident. If another driver caused the accident, their insurance typically covers these charges. However, it’s important to check your coverage details ahead of time, as insurance policies can differ significantly.

Rental charges can encompass the daily rental rate, applicable taxes, and various fees charged by the rental company. For example, if a standard rental car costs about $150 per day, and you need a vehicle for a week, the basic rental cost would be around $1,050 before taxes and fees. These amounts can accumulate quickly, making it crucial to grasp your insurance specifics.

What’s Covered by the At-Fault Insurer?

Generally, the at-fault party's insurance is liable for covering rental charges during the period your car is being fixed or awaiting settlement in the case of a total loss.

Two vehicles involved in a motor vehicle collision where the not at fault party has contacted Faultless Cars NZ for a no cost accident replacement vehicle — If your not-at-fault following a motor vehicle accident, you could be entitled to a free rental car

When Might You Face Extra Costs?

While many rental expenses are generally covered, certain situations can lead to extra costs. Extra charges can arise from unpaid toll road, speeding or parking infringments, unpaid fuel. It’s crucial to remember that if you choose to rent a car following a not at fault accident, you will still be responsible for general running costs as you would your own.

Final Thoughts

Understand how accident replacement vehicles work doesn't have to be a headache. With the right knowledge in hand, you can ensure your experience is smooth, allowing you to focus on what truly matters—safely getting back on the road.

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