"Can a car insurance company deny a claim because their insured was driving a rental car? "

"I was in a collision with another driver who was using a rental car in New Jersey. They rear-ended me, so liability is not an issue. Their insurance is denying my claim because their insured was driving a rental car. Is this a valid reason for a denial?

"

Answer
“Insurance companies can deny a claim for any number of reasons.
As part of their coverage investigation, the other driver’s carrier would have obtained a copy of the rental car contract. If they have already sent you a formal written denial, they do not believe that they are contractually obligated to pay for your damages under their insured’s policy.
You can ask them who they believe to be responsible.
Contact the rental car company and determine their stance on the claim. If the car was rented for business purposes by a company, there may be another insurance company involved as well.
If you have collision coverage on your policy, you should file a claim through your own insurance and let your carrier pursue the other party for the damages.”
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Shannon Martin
Answered on May 06, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
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