Questions & answers · Car insurance
My insurer refused to pay for a rental car after an accident caused by another driver. What can I do?
Car insuranceDeniedChecked Nov 6, 2026
From K.Actuary, founded by Sangmin Kwon, ASA · sources checked 2026-11-06 · Source: Texas Department of Insurance (TDI) · Accident not your fault? Here's how to deal with the other driver's insurance. · sections "Issues that can happen when fil View original ↗
In short
- Who pays for a rental depends on which coverage you have.
- Ask your insurer to put its reason in writing. A Texas rule says a denial must be in writing.
- You can complain to the Texas Department of Insurance at 800-252-3439.
What this means
Your question does not name a state, and the rules differ by state. This answer uses pages from the Texas Department of Insurance (TDI) as an example. TDI says the other driver's insurance should pay for your car repairs, medical bills, and a rental car [1]. But it might not pay all of your costs [1]. TDI says your own policy may have rental reimbursement coverage. It pays for you to rent a car while yours is being repaired after an accident [2]. Rental coverage has a dollar limit, which is the most the company will pay [2]. TDI lists a rental car, if you need it, under uninsured/underinsured coverage. That coverage applies if the at-fault driver had no insurance or not enough [3].
When a company denies your claim, TDI says Texas law requires it to tell you why in writing. The company must accept or reject your claim within 15 business days of getting all the information it needs from you. A company that needs more time can take 45 days, and it must tell you the reason for the delay [4]. TDI says its prompt payment law does not apply when another driver's insurance company is paying the claim [4].
The sources do not say whether your insurer was right to refuse, because that depends on your policy. You can complain to TDI. The complaint must be in writing. TDI says it cannot decide who was at fault in an accident or determine damage amounts [5]. The TDI number is 800-252-3439 [1].
Your next step
Ask your insurer to give you the reason for the refusal in writing, and look at the first page of your policy to see whether it lists rental coverage and its dollar limit. You can also ask the other driver's insurer about a rental car. The sources give 15 business days (45 days with a stated reason) for a company to accept or reject a claim after it has all the information.
Check it yourself
Open the TDI Auto insurance guide and read "Types of auto coverages" and "After I file my claim, what happens?". Your own declaration page shows whether you bought rental coverage. The sources do not say what other states require — "Don't know yet".
Where this comes from (5)
[1] Texas Department of Insurance (TDI) · Accident not your fault? Here's how to deal with the other driver's insurance. · sections "Issues that can happen when fil · checked 2026-11-06
The other driver’s insurance should pay for your car repairs, medical bills, and a rental car. Still, there’s no guarantee they will pay. … Questions? Call us at 800-252-3439.
[2] Texas Department of Insurance (TDI) · Auto insurance guide · sections "Types of auto coverages" and "Deductibles and dollar limits" · checked 2026-11-06
Rental reimbursement coverage pays for you to rent a car if yours is stolen or being repaired after an accident. Some policies also pay for taxis or ride-hailing services. … rental coverages have dollar limits. This is the most the company will pay, even if the cost is higher. If you don’t have enough coverage, you’ll have to pay the difference yourself. … The first page of your policy is the declaration page. It has…
[3] Texas Department of Insurance (TDI) · What is uninsured motorist coverage, and do I really need it? · section "What coverages do I get?" · checked 2026-11-06
Uninsured/underinsured coverage pays for: Car repairs and to replace the property in your car. A rental car if you need it.
[4] Texas Department of Insurance (TDI) · Auto insurance guide · section "After I file my claim, what happens?" · checked 2026-11-06
Accept or reject your claim within 15 business days of getting all the information it needs from you. A company that needs more time can take 45 days to decide whether to pay your claim. It must tell you the reason for the delay. If it denies your claim, it must tell you why in writing. … The prompt payment law doesn’t apply if another driver’s insurance company is paying the claim.
[5] Texas Department of Insurance (TDI) · Auto insurance guide · section "Resolving problems" · checked 2026-11-06
Complain to us. Your complaint must be in writing. You can use our Online Complaint Portal . Understand that our ability to help might be limited. For instance, we can’t decide who was at fault in an accident or determine damage amounts.
How we found this
We matched your question to 5 official sources, quoted the exact lines, and re-checked each quote against its source on 2026-11-06.
What we don’t know yet
Your own plan or notice may say something different. If your letter cites another rule, send it and we will look again.
Every answer is checked against the official rule it quotes.
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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