After a car accident, one of the first questions people ask is: “How am I supposed to get around while my car is in the shop?” The good news is that in California, you may have the right to a rental car, or at minimum, compensation for the loss of use of your vehicle. In some cases, you may also recover money for the diminished value of your car and if your car is declared a total loss, you are entitled to fair market value.
Rental Car Rights After a California Car Accident
If your vehicle is damaged in an accident caused by another driver, you have the right to a rental car paid for by their insurance company while your vehicle is being repaired. Under California law, the at-fault driver’s insurer must provide you with a “reasonable rental vehicle” for the full duration of your repair period.
“Reasonable” means a rental car similar in size, class, and function to your own. If you drive a sedan, you don’t have to settle for a compact. If you use a truck or SUV for work, you can request a comparable replacement. The goal is to keep you mobile without financial burden while your vehicle is unavailable.
If you choose to use your own collision coverage, your policy may include rental reimbursement benefits. The daily limit and maximum coverage period depend on your specific plan, so reviewing your policy details early can prevent unexpected out-of-pocket costs.
⚠️ Important: Insurance companies often try to limit or prematurely terminate rental coverage. You are legally entitled to a rental for the entire reasonable repair period not just until the insurer thinks the work should be completed.
Loss of Use Damages
Even if you don’t rent a car, you can still claim loss of use damages under California law. These damages compensate you for the inconvenience and disruption of being without your vehicle.
The amount is usually calculated based on the daily rental rate for a comparable car, multiplied by the number of days you were without your vehicle. Courts recognize that you experience real hardship when deprived of your car, even if you choose not to rent one and you’re entitled to be compensated for that loss.
For example, if it takes two weeks to complete repairs and a comparable rental costs $45 per day, your loss of use claim would total $630, even if you didn’t actually rent a vehicle.
Diminished Value Claims
Even after high-quality repairs, your vehicle may suffer a permanent reduction in resale value due to its accident history. This is known as diminished value and California law allows you to pursue compensation for it.
Diminished value is the difference between your car’s pre-accident market value and its post-repair value. This claim is especially strong for newer, luxury, or leased vehicles, where resale value plays a significant role.
Insurance companies often downplay diminished value, but buyers and dealers routinely discount vehicles with accident reports, even when fully repaired. An experienced personal injury attorney can help you prove the diminished value using expert appraisals and comparable vehicle data.
Total Loss Situations (When the Car Can’t Be Repaired)
If your car is so severely damaged that the cost of repairs approaches or exceeds its market value, the insurer will declare it a total loss. When that happens, you are entitled to the fair market value of your vehicle immediately before the accident, not a lowball offer.
Fair market value is based on comparable local sales, vehicle condition, mileage, and options or upgrades, not what the insurance company prefers to pay.
You are also entitled to either a rental car or loss of use damages until you receive your total loss settlement check, not just until the insurer makes a decision about totaling your car.
If you still owe more than your car is worth (known as negative equity), gap insurance can cover the difference between your loan balance and the insurer’s payment. This ensures you’re not left paying out-of-pocket for a car you no longer have.
Practical Tips for Protecting Your Rights
✅ Ask for a rental comparable to your own car.
✅ Keep all receipts and invoices.
✅ Track how long your car is out of service as insurers must pay for that time.
✅ Don’t accept the first total loss offer without researching your car’s true value.
✅ Consider an independent appraisal for diminished value or disputed total loss valuations.
Bottom Line
After a California car accident, your rights go far beyond repairs. You may be entitled to a rental car, loss of use damages, diminished value compensation, and a full payout if your car is totaled.
📞 Call The Injury Partners at 310-220-0066 today. We’ll fight to make sure the insurance company pays every dollar you’re owed, not just for medical bills, but for the real financial impact of losing your vehicle.