If you are involved in a rental car accident, the payment and settlement process can be complicated. Not only is it necessary to determine who was at fault, but there are other elements that can affect the settlement, such as what coverage was purchased and if the driver had a personal auto policy. Hiring an accident attorney is one of the best decisions that you will make, especially since there can often be up to four insurance layers that apply in these types of accidents.
The harsh reality is that making the wrong move in the first 24 to 48 hours after the accident could cost you the settlement. Call our team right away, and follow these tips to ensure that you receive maximum compensation for your accident.
Who Pays for a Rental Car Accident? (It’s More Complicated Than You Realize)
One of the biggest issues with a rental car accident is that most people assume that the rental company will handle everything. But the harsh reality is that the rental company’s interest is in recovering losses from you…not protecting you.
The payment for a rental car accident depends on who was at fault, your state’s negligence rules, and which insurance policies apply in the situation. Each accident is unique, which is why there isn’t a one-size-fits-all approach for this claims process.
The 4 Insurance Layers That Could Apply to Your Accident
If you are asking who is liable for a rental car accident, there are actually four layers of insurance that could be leveraged in your claim:
- At-Fault Driver’s Policy: Did another driver cause the crash? Then the first place to start is with their insurance coverage. But the problem is that state minimums are often too low, which means that there might not be enough coverage for your actual damages.
- Your Auto Insurance Policy: Next, take a look at your personal policy to see if it extends to rentals (often through non-owned auto coverage). Never assume coverage; this information should always be confirmed when you are renting a car.
- The Rental Company’s CDW/LDW: When the rental company asks you to sign a waiver at the counter, it isn’t insurance. Instead, it is a contract that includes exclusions that will void the coverage completely. Common exclusions include unauthorized drivers, DUI, off-road use, and more.
- Credit Card Benefits: Depending on the type of credit card that you have, there might be rental coverage benefits available. For example, many people use the Chase Sapphire for travel, which includes coverage. Keep in mind that most of these credit card benefits are secondary, which means that your personal policy needs to pay first.
Who Is Liable for a Rental Car Accident? Real-World Scenarios
Determining liability is one of the most important aspects of a rental car claim, which is why it makes sense to call an accident lawyer as soon as possible for assistance. Not only will our legal team help you prove liability, but we also know the proper order of coverage depending on the circumstances of the accident.
- You Were at Fault: What happens if I crash a rental car? If you were at fault, then your personal liability coverage is used. Then, CDW might apply for the vehicle damage, but only if the contract wasn’t violated.
- Another Driver Hit You: If you weren’t at fault because another driver hit you, then their liability insurance is the primary source for the settlement. Next, your UM/UIM coverage might apply if the other driver is uninsured or underinsured.
- An Unauthorized Driver: In the situation where an unauthorized person (who wasn’t on the agreement) was driving, then it’s likely that the rental car coverage is void. The harsh reality is that one of the costliest fine-print traps in rental contracts is the authorized driver clause.
- Mechanical Default: If the rental car had a mechanical default that caused the accident, then the rental company might be liable due to negligent maintenance. This is one of the few situations where you might have the option to sue the rental company directly.
Unexpected Costs After a Rental Car Accident
Not only are you dealing with medical costs and property damage expenses, but there are two unexpected bills that might come through from the rental company. The first is a “Loss of Use” bill for the revenue that was lost while the vehicle was being repaired. Next, rental companies sometimes try to get compensation for “Diminished Value” because the vehicle is worth less after repairs.
Most car renters don’t see either of these expenses coming, and it can be a shock to learn that you need to pay even more after you think that the accident settlement is complete.
FAQ
What should I do after a rental car accident?
Contact an accident attorney right away if you are wondering what to do after a rental car accident. While 911 should be your first call, you also need to notify the rental car company and reach out for legal advocacy without delay. Seek medical attention, document the scene, and collect contact information from the witnesses.
Who pays for a rental car accident if I was at fault?
If you caused the accident, then your personal liability coverage will pay for the damages to others. The CDW or your personal collision coverage will pay for the rental vehicle (as long as you didn’t void coverage through a contract violation).
What if an uninsured driver hits my rental car?
Check your personal policy to see if you have uninsured motorist coverage that extends to rentals. Then, you’ll need to file with your insurer and let them pursue the at-fault driver.
Hurt in a Rental Car Accident? Don’t Navigate This Alone.
Not only is it a challenge to recover from the injuries after a rental car accident, but the legal side of the settlement can be quite a hassle. You don’t need to navigate this situation on your own. Our legal team is here to advocate on your behalf to optimize your recovery.
Don’t accept a settlement without consulting a lawyer. For more information, schedule a consultation with an experienced accident attorney here at Wormington & Bollinger. Contact us today to learn more about your legal rights after a rental car accident.