Recently one of our drivers hit a pole with our rental vehicle, we have returned the rental vehicle and our insurance is not covering the damages due to it being a rental vehicle. We have since paid for the damages out of pocket and would like to know where we should account for this in our books?
Rental Car Damages Payment No Insurance
Answers
I assume that you are located in Tx USA.
Talk to your insurance agent. The insurance business is tricky if you do not know the details of the processes you have to go through. File a claim with the Rental company. Give them the details of your company's insurance company and policy #. Depending on the rental contract, they have to cover or have to pass the claim on to your "secondary" insurance coverage. And last not least, it might actually fall back to the insurance policy of the driver. Do all discussions in writing for confirmed mail. Tell the rental company that you do not authorize them to repair the car before the insurance issue is cleared. You do have compulsory car insurance coverage in the State of Texas. One of the companies has to accept the claim.
The more resolute you are the faster the claim will be handled. Don't' talk to the "next available agent". You do have somebody who sold you the insurance premiums. Have them work for you or you go somewhere else next time.
Filed Under:
Accounting