How does the value of the rental car affect what I would have to pay in the case of an accident?
The personal auto policy covers the lessor of the “actual cash value” of the vehicle or the amount “necessary” to replace or repair the damaged property. The rental agreement may very well contractually obligate you to reimburse the rental company for the “full value” of the vehicle. The personal auto policy also does not cover any “diminution” of value (if the market value of the vehicle after repairs is less than before the accident.) • Who takes care of inspecting the damage? There may very well be disagreement over the value of the vehicle or the amount charged for labor and material to repair it. Your auto policy’s appraisal clause may be invoked with its accompanying costs. More importantly, the insurance company has the right to “…inspect and appraise the damaged property before its repair and disposal.” However, the rental company, unlike you, is not contractually obligated to the insurer… it may choose to make repairs immediately, potentially resulting in a lack of persona
