How to handle a rental car accident and deal with insurance, liability, and damage claims. Learn essential steps and legal tips to stay protected.
Crashed Your Rental Car? Immediate Actions Drivers Must Take
Whether you’re renting a car for a nice weekend getaway or driving a rental car while your main vehicle is being repaired, wrecking a rental car is not a situation many people want to face.
Dealing with the aftermath of a rental car accident can feel like a series of stressful events as rental car accidents often involve negotiations with multiple insurance providers, fine-print rental agreements, and unclear liability. However, it’s important to remain level-headed and manage rental car accidents effectively.
In this article, we’ll discuss the steps to take after a rental car accident, what to expect from insurance and rental companies, and who’s financially responsible.
Insurance Coverage and Rental Car Accidents
While you don’t technically have to have rental car insurance when driving a rental, not having it can remove a solid layer of protection in the event of an accident. Unless your car insurance for your personal vehicle extends to car rentals, most car rental companies will require you to opt for one of their insurance variations to rent a car.
Here are variations of rental car insurance that car rental companies can provide:
- Rental Car Liability Insurance: This covers other drivers’ property damage and injuries resulting from an accident caused by the renter.
- Loss Damage Waiver Insurance: Your responsibility to pay for a total loss, accident damage, environmental damage, theft, and vandalism is waived.
- Collision Damage Waiver Insurance: This policy has a similar function to loss damage waiver insurance. However, it only covers the damage to a rental car caused by a crash.
- Personal Accident Car Rental Insurance: Pays for medical bills for you and your passengers, regardless of who is at fault for an accident. It’s comparable to medical payments and personal injury protection for standard car insurance.
- Rental Car Personal Effects Coverage: Protects your personal items like luggage, electronics, and clothing.
Being aware of what your auto insurance covers when driving a rental can better prepare you financially for handling a potential car accident. Full coverage is ideal and should include comprehensive, liability, and collision coverage.
Who Pays for Rental Car Damages?
Payment for damages to the rental vehicle after an accident depends on who’s at fault. If the other driver is at fault, their insurance should cover the cost of the rental car accident through their liability coverage. In this case, the rental company would file a claim with the at-fault driver’s insurance company.
If the renter is at fault for the accident, they could file a claim under their personal insurance to pay for the repairs or a replacement vehicle. However, if a loss or collision damage waiver was purchased through the rental company, the renter won’t need to file a claim.
Another factor that affects payment for damages is your rental car agreement. The rental company can deny coverage for term violations, even if they were unintentional. Be sure to thoroughly understand and adhere to your rental agreement, as failure to do so could void any damage waivers or liability coverage.
Common terms and conditions in a car rental agreement include:
- Rental period
- Who is allowed to drive the vehicle
- Return conditions
- Where the vehicle can be driven
- Rental fees
- How quickly an incident must be reported
Proving fault in rental car accidents follows similar guidelines to regular car accidents; however, determining liability might not be so straightforward. If disputes arise when proving fault, enlisting the help of a car accident lawyer can keep you from paying unnecessary costs and ensure that the at-fault driver takes responsibility.
Liability of Rental Car Companies in Car Accidents
Under the Graves Amendment, rental companies are not liable for the damages caused by the negligence of the renter or other drivers involved in an accident unless it is proven that the accident resulted from the rental car company’s negligence.
Grounds for negligence for rental car companies include:
- Failing to maintain the vehicle (neglected repair)
- Renting out a car with known defects (faulty brakes)
- Not verifying the driver’s qualifications (invalid license).
What Every Driver Should Do After a Rental Car Accident
Post-accident procedures for rental car wrecks can seem intimidating with the involvement of insurance providers and rental companies. Still, handling a rental car collision is similar to what you would do if you were driving your own car and had a collision.
First, relocate to a safe distance, contact enforcement, and file a police report. Next, share contact information such as full names, addresses, insurance companies, phone numbers, email addresses, and vehicle information with everyone involved. After that, document the accident by taking photos of the accident scene, your rental car, and any injuries sustained.
Be sure to seek medical attention and document any potential injuries. Some injuries may not show immediate symptoms, so see a doctor even if you feel fine. Then, inform the rental company and your personal car insurance company that you’ve been in an accident. You can find an emergency number listed in the rental agreement.
Finally, consult a rental car accident lawyer to investigate potential liability for your injuries and discuss additional damages you can recover.
FAQs
1. What to do if I crash a rental car?
First, make sure everyone is safe. Then, call the police. Next, swap contact and insurance info with the other driver.
After that, tell the rental company and your insurance about the accident.
2. Who pays for damages to a rental car?
If you’re at fault, your insurance might cover it. If the other driver is to blame, their insurance should pay. Rental company damage waivers can also help.
3. Does my car insurance cover rental cars?
Some car insurance policies cover rentals. This includes liability, collision, and more. Always check with your insurer before skipping the rental company’s insurance.
4. What insurance do I need for a rental car?
You usually need basic liability insurance. But, you might want extra like Collision Damage Waiver. Choose based on your coverage. Always read the rental agreement carefully.
5. Can rental companies deny damage claims?
Yes, if you break the rental agreement rules. This includes driving without permission or going where you shouldn’t. Always follow the contract to keep your coverage.
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