Renting a vehicle is a convenient option for vacations, business trips, or temporary transportation while a personal car is being repaired. However, when an accident involves a rental vehicle, determining who pays for the damage can become complicated. Understanding how rental car accident insurance coverage works can help drivers and injured passengers make informed decisions after a collision.
Who May Be Held Accountable for a Rental Car Accident
Responsibility for a rental vehicle accident often depends on who caused the accident and the events surrounding it. California follows a comparative negligence system, meaning that more than one party may share responsibility for an accident. The fact that a vehicle is rented does not automatically make the rental company responsible for the driver's negligence.
Personal Auto Insurance: An Overview
Many personal automobile insurance policies provide some coverage when the policyholder drives a rental vehicle. However, the extent of protection depends on the specific policy, the type of vehicle rented, and the circumstances of the accident. Common types of coverage may include, but are not limited to, the following.
- Liability coverage: May pay for injuries or property damage caused to others when the insured driver is legally responsible.
- Collision coverage: May help pay for damage to the rental vehicle, subject to policy terms and deductibles.
- Comprehensive coverage: May cover certain noncollision losses, such as theft, vandalism, or weather-related damage.
- Medical payments coverage: May help cover qualifying medical expenses regardless of fault.
Drivers should consider reviewing their insurance policies before renting a vehicle because coverage does not always transfer automatically to every rental situation. Certain limitations may apply to the following.
- Commercial rentals
- International trave
- Unauthorized drivers
- Specific vehicle categories
Rental Cars and Insurance
Rental companies usually offer several optional protection products. Although these products are sometimes described as rental car insurance, they provide different forms of protection. The following are the types of insurance coverage offered by rental car companies.
- Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW)
- Supplemental Liability Insurance (SLI)
- Personal Accident Insurance (PAI)
- Personal Effects Coverage (PEC)
Credit Card Insurance
Some credit cards offer rental vehicle damage protection when the cardholder pays for the rental using an eligible card and complies with the benefit requirements. However, credit card rental benefits usually have important limitations. Credit card benefits may also be classified as primary or secondary coverage.
- Primary coverage often allows an eligible claim to be submitted without first using personal collision insurance.
- Secondary coverage typically applies after other available insurance, subject to the card's benefit terms.
Rental Car Companies: Who is Responsible?
Rental companies are not automatically responsible because they own the vehicle involved in an accident. Under the federal Graves Amendment, 49 U.S.C. § 30106, qualifying vehicle rental companies usually cannot be held liable only based on vehicle ownership when the vehicle is rented to another individual. As a result, you must understand the full facts of each situation to determine whether the rental car company may be held liable.
The Necessary Steps to Take After a Vehicle Collision
Victims should consider taking the following steps after suffering injuries from a vehicle collision.
- Check for injuries. Seek medical attention when necessary and contact emergency services if the circumstances require it.
- Report the accident. Notify law enforcement when required and obtain available accident documentation.
- Document the scene. Photograph vehicle damage, road conditions, traffic signs, and other relevant details.
- Exchange information. Obtain contact and insurance information from the drivers involved.
- Notify the rental company. Follow the rental agreement's accident reporting requirements.
- Preserve records. Keep rental agreements, insurance documents, medical bills, repair estimates, and communications.
- Avoid making assumptions about fault before the circumstances have been adequately reviewed.
Types of Compensation that may be Available
An injured person may be able to pursue compensation when another party's negligence contributed to the accident. Potential damages may include but are not limited to the following.
- Medical treatment expenses
- Rehabilitation costs
- Lost earnings
- Reduced earning capacity
- Non-economic losses
It is also important to note that under California's comparative negligence principles, compensation may be reduced according to the injured person's percentage of responsibility.
The Importance of Seeking Legal Guidance and Support
Speaking to a legal professional after suffering injuries from a car accident caused by a rental vehicle is important for understanding your rights. The proper legal guidance and support may assist individuals in the recovery process and throughout their personal injury claims.
The Legal Team at KAASS LAW
The qualified personal injury attorneys at KAASS LAW are determined to help victims and their loved ones understand the challenges and legal considerations that may follow a vehicle collision involving a rental car. Our legal team may review the circumstances of your case, determine potentially liable parties, and preserve important information moving forward. Don’t wait. Call KAASS LAW today to learn more.