Consider the scenario where a commercial truck driver does not have rental reimbursement with downtime coverage and is involved in a not-at-fault accident. Is there a way to obtain rental downtime coverage through the at-fault driver's commercial auto policy?
You might be surprised to learn there is.
First, What is Downtime Coverage?
The easiest way to get a downtime claim paid is to program the coverage onto your policy. Rental downtime coverage, also known as loss of use coverage, provides coverage for rental car costs to temporarily replace a customer’s vehicle due to a covered loss. Your insurance company will assist in locating a reasonable replacement to keep your business operating.
If they cannot locate a reasonable replacement vehicle, they will pay for your loss of income or downtime. This coverage is available for any vehicle covered by comprehensive and collision coverage. Anything paid out will be subrogated against the at-fault driver’s policy, if possible.
Limits Available for Your Policy
$30 per day/$900 max
$40 per day/$12,00 max
$50 per day/$1,500 max
$70 per day/$2,100 max
$80 per day/$2,400 max
$90 per day/$2,700 max
$100 per day/$3,000 max
$125 per day/$3,750 max
$150 per day/$4,500 max
$175 per day/$5,250 max
$200 per day/$6,000 max
$250 per day/$7,500 max
$300 per day/$9,000 max
$500 per day/$15,00 max
$750 per day/$22,500 max
What happens if you do not have this coverage?
Let’s assume you do not have rental with downtime programmed onto your commercial policy and you get into a not-at-fault claim. Below are four steps you can take to get the at-fault driver’s policy to pay for your downtime (loss of income) as a result of a covered claim. If you are a customer at Wilson Insurance, this is something I assist with.
1. File a Claim: File a claim with both the at-fault driver's insurance company and your own for damages. Ideally, you should do this on the day of the accident. It will take time for liability to be accepted by the other insurance company.
2. Determine Liability: It needs to be established that the other driver involved in the accident is at fault. This will involve gathering evidence, police reports, and any other relevant information to prove liability.
a. Order a police report. In Pinal and Maricopa County, they cost $5 and take 5-10 business days to receive.
b. Get an X-ray (even if you want to soldier through the pain). Getting an image of your injury and an expert opinion will clarify the extent of your injuries and assist in your claim settlement. Your policy will pay up to the limit of your medical payment limit. Anything over that may be picked up by the at-fault driver’s policies.
c. Upload dashcam footage to your insurance agent, police officer, and claims adjuster.
d. Get a quote on auto damages. If bodywork needs to be completed, there are only certain shops that will work on extra heavies (usually in the West Valley). They may have a cue of other trucks ahead of you.
3. Negotiation and Settlement: Once the claim is accepted, the insurance adjuster will investigate the claim and determine the extent of the damages, including the need for rental downtime coverage. The adjuster will then negotiate a settlement with your insurance company and you to cover your expenses.
Note: There are some instances where hiring a lawyer may be necessary if the at-fault driver’s insurance carrier is resistant to accepting liability. Hiring a lawyer can expedite the claims settlement process but it will reduce your overall award amount. We have referrals if needed.
As a best business practice, you should consider working with an insurance agency that understands the complexities of the transportation industry. At Wilson Insurance, our claims advocacy for truckers is both a skillset and a mindset developed over nearly twenty years on both the carrier and agency side. I take pride in getting results.
If your current agent isn’t giving you the service your company needs to thrive, don’t ride or die with them longer than you need to. Give me a call and let’s discuss your situation today!
Justin Chappell
VP Business Development
480-964-2400
justin@wilsoninsuranceaz.com