Paying Costs After a Car Accident: Deductible, Towing, Rental and Medical Bills

Published by the Modern Lending Solutions editorial team. Last reviewed: October 30, 2026.

Short answer: start with your policy and your insurer: what each coverage pays, your deductible, and whether towing and a rental are included. Then check every medical bill before you pay it. Borrow only for the part that is left, and compare the cost first. This is general information, not legal, insurance or financial advice. Your policy terms decide what is covered.

Know which coverage pays for what

A 2017 Treasury study described these types of personal auto coverage, each “subject to the insurance policy’s terms, conditions and exclusions” (Treasury Federal Insurance Office, January 2017):

Personal liability: covers bodily injury costs and property damage, “such as damage to structures or another car caused by the insured owner or other driver of the insured car”.
Uninsured motorist (UM): “reimburses the insured car owner when an auto accident is caused by an uninsured motorist, or for hit-and-run accidents”.
Underinsured motorist (UIM): “pays an insured car owner’s costs when another driver has insufficient insurance to pay all accident costs”.
Collision: pays for damage to your car from a collision with another vehicle or an object, which the study describes for the case “when the owner is at fault for the accident”.
Comprehensive: theft and damage from something other than a collision, such as flood, vandalism or hail.

This study is from 2017 and describes coverage in general. Your declarations page and policy show which of these you have and the limits and deductibles for each.

Questions to ask your insurer

Which of my coverages applies to this claim, and what is my deductible for it?
Is towing covered, and up to what amount? Where can the car be towed and stored, and who pays storage fees?
Does my policy include rental car coverage? What daily limit and what number of days?
If the other driver has no insurance or is unknown, do I have uninsured motorist coverage, and what does it pay for?
Who decides whether the car is a total loss, and how is its value figured?
Do I have to use a certain repair shop, and will you pay the shop directly?
Does my policy pay any medical costs, and how does that work with my health insurance?
What documents do you need, and when will I hear a decision? Please confirm in writing.

If the other driver is at fault, ask your insurer how a claim with the other driver’s insurer works and whether you should claim on your own policy first. Keep copies of every estimate, receipt and letter. For legal questions about fault or an injury claim, ask a lawyer.

If the car is totaled and you still owe on the loan

The CFPB says an insurance company compares the cost of repairs to the value of the car, “and if the repairs are more expensive, the company can declare the vehicle a total loss and pay you the fair market value of the vehicle on the date of the damage.” It says to compare what you owe on your auto loan to what insurance paid, because “you might owe the difference to the lender”, and to clarify with your insurer and your auto lender what your policy covers and what you could owe (CFPB, read October 30, 2026).

GAP is “an optional product that is intended to cover the difference between the amount you owe on your auto loan and the amount the insurance company pays if your car is stolen or totaled” (CFPB). Check your loan papers to see if you bought it. If you will have trouble making the loan payments, the CFPB says to contact your lender or servicer as soon as possible to ask about options (CFPB). See behind on car payments: repossession and options.

Repairs your insurance does not cover

For a deductible or a repair your policy does not pay, get a written estimate and compare ways to pay it in how to pay for a car repair.

Medical bills after the accident

The CFPB says: “Make sure the provider accurately calculated the bill and that you owe it before you pay.” It suggests checking that the charges match the care you received and that the bill reflects what your insurance paid, and says you have the right to an appeal with your health insurance company (CFPB, read October 30, 2026). If you have health insurance, the No Surprises Act generally means you won’t be responsible for balance bills or out-of-network cost-sharing for emergency care and for “air ambulance services from out-of-network providers” (CFPB, read October 30, 2026). Ask each provider and insurer which rules apply to your bill. For an ambulance bill, see ambulance bill options.

Financial assistance, sometimes called charity care, may lower a hospital bill: see hospital bill financial assistance. To compare a provider payment plan with a loan, see medical bill payment plans vs personal loans.

A $2,000 gap, only for the math

This example is only for the math, not a typical accident cost. It assumes $2,000 is left after insurance and compares paying it over 24 months at the Federal Reserve’s August 2026 averages: 11.90% APR for 24-month personal loans and 22.36% for credit card plans (G.19).

Option	Monthly payment	Interest	Total paid
Personal loan at 11.90%, 24 months	$94.05	$257.20	$2,257.20
Credit card at 22.36%, 24 months	$104.11	$498.64	$2,498.64

$94.05 x 24 = $2,257.20, and $104.11 x 24 = $2,498.64. Your rate depends on your credit and the lender. Before you borrow, wait for the insurer’s decision and check each bill, so you borrow only what is left. See how to budget for a loan payment.

Checklist

Read your declarations page: coverages, limits and deductibles.
Ask your insurer about towing, storage, rental and the deductible, and get answers in writing.
If the car may be totaled, compare the payout with your loan balance and check for GAP.
Check every medical bill against your care and your insurance before you pay.
Ask about financial assistance and payment plans.
Borrow only for what is left, and compare the total cost.

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Sources

Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.

Paying the Costs After a Car Accident