Questions & answers · Car insurance
In New Jersey, will the other driver's insurance company pay for my rental car and for storage fees?
Car insurancePaid too littleNew JerseyChecked Nov 5, 2026
From K.Actuary, founded by Sangmin Kwon, ASA · sources checked 2026-11-05 · Source: New Jersey Department of Banking and Insurance (NJDOBI) View original ↗
In short
- New Jersey's insurance department says the insurer must pay rental costs in proportion to its customer's fault.
- Once the insurer knows its customer is 50 percent or more at fault, it must commit to paying for a rental or other substitute transportation.
- The insurer must give 3 working days' notice before it stops paying storage.
What this means
This answer uses one New Jersey Department of Banking and Insurance page. When you claim against the other driver's insurer, you should ask it whether you are entitled to a rental car. The page says it does not have to commit to payments until it becomes reasonably clear its customer was legally responsible. Once it knows the customer will be 50 percent or more at fault, it must commit. The payment is in proportion to fault: the page gives the example of $30 a day and 60 percent fault, which means $18 a day.
For storage fees at a body shop or storage lot, the page says the insurer must give you 3 working days' notice before it stops paying.
Your next step
When you report the claim, ask the other insurer in writing about rental and substitute transportation. Ask when it will stop paying storage. The page gives no other deadline for this.
Check it yourself
Open the NJDOBI page and read questions 9 and 10.
Where this comes from (1)
[1] New Jersey Department of Banking and Insurance (NJDOBI) · checked 2026-11-05
they do not have to commit to making any payments until it becomes reasonably clear that their policyholder was legally responsible for the accident. Simply stated, once the insurance company knows that their insured is going to be 50% or more at fault, they must commit to paying for a rental car or other substitute transportation. Keep in mind that New Jersey insurance regulations require an at-fault driver’s insura…
How we found this
We matched your question to 1 official source, quoted the exact lines, and re-checked each quote against its source on 2026-11-05.
What we don’t know yet
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Information only — not legal advice. Your plan, insurer or agency decides.
This answer quotes the official sources listed above, with the date we checked them. Your own policy, notice and state rules control. We are not your lawyer or your insurer. We don’t file, argue or negotiate claims for you — you send any letter or form yourself.
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Answer id CQ3045. Spotted an error? Tell us.