Your car is in the shop for collision repair. You still need to get to work, pick up the kids, run errands. The question everyone asks: who pays for the rental?

The answer depends on your policy, who caused the accident, and a few details most people don’t think about until they’re standing at the rental counter. If you’ve just been in an accident, start with our guide on what to do after a collision in Sherwood Park.

If the other driver was at fault

When the other driver is clearly at fault, their insurance (the third-party liability coverage) pays for your rental. This is called loss of use and it’s part of their liability obligation.

What this looks like in practice:

  • You rent a vehicle and submit receipts to the at-fault driver’s insurer
  • Or the at-fault insurer sets up a direct billing account at a rental company
  • Coverage typically lasts for the reasonable repair period: the time a competent shop needs to fix your vehicle (see our breakdown of how long collision repair actually takes)
  • You’re entitled to a comparable vehicle, not necessarily the same make and model

The catch: if there’s a dispute about fault, or if the at-fault insurer is slow to accept liability, you may need to rent out of pocket and seek reimbursement later.

If you were at fault (or single-vehicle accident)

This is where your own policy matters. Alberta auto insurance doesn’t automatically include rental coverage. It’s an optional add-on called SEF 20 (loss of use endorsement).

If you have SEF 20:

  • Your insurer provides a rental (or reimburses you) while your car is being repaired
  • There’s usually a daily dollar cap ($40-$75/day is common)
  • There’s usually a maximum duration (30 days is typical)
  • Your collision deductible still applies to the repair: the rental is separate

If you don’t have SEF 20:

  • You’re on your own for transportation while the car is in the shop
  • This is one of the most common coverage gaps people discover after an accident

Check your policy now, before you need it. Call your broker and ask if you have loss of use coverage and what the daily/maximum limits are. And remember, you choose which shop repairs your vehicle, not your insurer.

How long does rental coverage last?

Rental coverage lasts for the reasonable repair time: not indefinitely. That means:

  • The time the shop actually needs to do the work
  • Plus a reasonable amount of time for parts ordering and insurance approval
  • Not delays caused by you (failing to drop off the car, not returning calls)

If the shop says the repair will take 8 business days, you get roughly 8 business days of rental. If parts are backordered and add 5 days, that’s usually covered too, but document it.

Insurance adjusters watch rental duration closely. If the repair takes 10 days but you keep the rental for 25, you’ll likely be paying for those extra 15 days yourself.

Tips to avoid rental headaches

1. Ask your shop about rental coordination Good shops handle this routinely. Many have partnerships with rental companies and can arrange your rental when you drop off your vehicle.

2. Get the repair timeline in writing Ask your shop for an estimated completion date. This protects you if there’s a dispute about rental duration.

3. Return the rental promptly Pick up your car the day it’s ready and return the rental the same day. Insurance stops covering the rental once your vehicle is available.

4. Keep all receipts Gas fill-ups, rental agreements, insurance correspondence. If you need to seek reimbursement, documentation is everything.

5. Don’t upgrade beyond what’s covered If your daily cap is $50 and you rent a $90/day SUV, you’re paying the $40 difference. Rent what the coverage allows.

6. Ask about the rental company’s insurance The rental counter will offer their own collision damage waiver (CDW). In most cases, your own auto insurance extends to rental vehicles, but confirm with your broker first. Don’t pay for duplicate coverage.

What if your car is a total loss?

If the insurer declares your vehicle a total loss, rental coverage typically ends within a few days of the settlement, usually 48 to 72 hours after they make the offer. The logic is that once you have the settlement money, you can arrange your own transportation.

This timeline can feel tight. If you’re negotiating the total loss value, the rental clock is still ticking. Push for a fair settlement quickly or ask your adjuster to extend the rental while negotiations continue.

The bottom line

Rental coverage during collision repair is manageable if you know what your policy includes and communicate clearly with your shop and insurer. The biggest mistake people make is assuming they’re covered when they’re not, check for SEF 20 on your policy before you need it.

A recommended local shop that handles insurance claims regularly will help coordinate your rental as part of the process. Ask them how they handle it before you drop off.