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What Happens If You Damage a Rental Car in a Car Accident
If you damage a rental vehicle in a car accident, many things could occur; however, whether or not you face financial and legal consequences will typically depend on who is at fault for the rental car damage.
Below, we cover what may happen if you are involved in a rental car accident while renting.
Reporting Requirement
Most car rental companies have accident reporting requirements outlined in the rental contract, which you must follow immediately after a rental vehicle accident.
Failure to file an incident report could result in you facing additional charges or even a denial of any auto insurance claims you may file.
Initial Rental Company Damage and Fault Assessment
Immediately after a vehicle accident in a rental car, the rental car agency will evaluate the damages and conduct a quick assessment of who may be the responsible party for the accident before filing an insurance claim.
If you are at fault for the accident or there are no other parties involved, the rental car company may seek to hold you financially responsible for the damages.
Options to Cover the Damage Expenses
To avoid full financial responsibility for a rental car accident, it's crucial that you explore every option available to you that may cover the damages, including:
- Your Personal Car Insurance Policy: You may be able to use your existing car insurance policy to cover the damages.
- Credit Card Coverage: Depending on which credit card you hold and if you used the credit card to pay for the rental car, you may be able to utilize primary or secondary coverage to pay for the damages, as some credit cards offer rental car coverage.
- Rental Collision Damage Waiver: If you purchased a loss damage waiver at the car rental counter, you can utilize it as damage coverage and avoid any large out-of-pocket costs.
- Third-Party Insurance: If you bought car rental insurance coverage through a third-party provider or travel agency site, you may be covered for the rental car damages.
It's a good idea to consult with an experienced attorney to learn what option in covering rental car damages may work best for you.
Potential Out-of-Pocket Costs & Fines
Even with your own personal auto insurance or car rental company's rental car insurance, you may still face fines charged by the rental company, such as:
- Administrative fee
- Loss of use fines (Revenue lost due to the cars involved being in repair)
- Diminished value costs
While a rental company has a right to charge fees following an accident with one of their rental cars, it's important to avoid being taken advantage of and analyze each of the costs/fines or consult with an attorney.
What Happens If You Damage a Rental Car Without Insurance Coverage
If you are involved in a car wreck in a rental vehicle and you don't have the minimum liability insurance requirements outlined by your state or credit card benefits, you can face severe financial and legal consequences, including:
- Personally Held Liable for All Damages: Without rental car insurance options, you may be held liable for all damages, potentially creating a dark financial situation.
- Potentially Legal Actions Against You: If the rental car company does not provide coverage and learns you lack liability insurance, they will attempt to charge your credit card on file for all the expenses associated with the accident. If the amount charged exceeds your card's limit or you dispute the charge, the car rental company may pursue legal action to cover the damage.
- Future Car Rental Issues: Future rental agencies may blacklist you from their car rentals if they learn that you are or did lack personal insurance.
If you damage a rental vehicle while lacking an insurance provider, it's typically best to consult a personal injury attorney to learn your potential legal defenses.
What to Do If You Have a Rental Car Accident
Getting in a motor vehicle accident in a rental car can be stressful, especially since the vehicle isn't yours.
However, by understanding the correct steps to take following a rental car crash, you should be able to avoid any long-term consequences or problems.
Check for Injuries and Call 911
Following any motor vehicle accident, it's crucial that you check if you or your occupants sustained any injuries.
If anybody suffered injuries in the accident, immediately contact emergency medical services.
After checking for injuries, contact law enforcement, as an accident report filed by the local police will be vital to any claims process you may have to go through.
Exchange Information
Once the accident scene is safe, exchange contact info with the other drivers involved, prioritize collecting information such as:
- Names
- Contact information (Phone number, email, etc)
- Insurance company information
- License plate numbers
- Basic vehicle information (Make, model, and color)
Other drivers involved in the accident are legally required to exchange information following an accident, so don't be afraid to ask.
Document the Accident Scene
Using your phone, take photos and videos of the accident, including visible damages, injuries, road conditions, and traffic signs.
In addition, using paper or a notes apps document the exact location of the accident, time, date, and how the accident happened according to you.
Notify the Rental Car Company
Using the emergency number listed in the rental agreement or glove box, notify the rental agency of the accident.
Tell them where the accident occurred and ask what you should do next.
By promptly notifying the rental agency of the accident, you ensure complete compliance with the rental agreement and avoid any potential complications.
Contact Your Insurance Company
Promptly notify your auto insurance company of the accident and inform them about filing a rental car damage claim.
In addition, ask about your primary coverage and whether or not you have collision and comprehensive coverage in your policy.
Will My Insurance Premiums Go Up If I Get in a Rental Car Accident?
The question of whether your insurance premiums will go up following a car wreck in a rental car depends on various factors, which are explored in the following sections.
If You Were at Fault for the Accident
If you were at fault for the accident and utilized your insurance company to cover the damages and injuries, your premiums will most likely rise on the next renewal period.
The increase in insurance costs could last for months or years, depending on factors such as claims history and severity of the accident.
If You Were NOT at Fault for the Accident
If you were not at fault for the accident and sought compensation from the other driver's insurance company, you will most likely not see an increase in insurance premiums.
However, you should understand that some insurance companies may still raise premiums even if you weren't liable for the car crash.
If There Was Rental Car Insurance Coverage
If you purchase a collision damage waiver or use additional insurance options such as your card's rental coverage, your premiums won't be affected as your primary insurance policy was not used.
How Can I Avoid Paying for Rental Car Damage?
If your rental car sustained minor damage, there may be ways to avoid paying for the damage.
Such ways include:
- Using credit cards that offer rental car coverage
- Using your own personal insurance
- Using the rental company's CDW
- Utilize third-party insurance during your rental period
- Working with a personal injury attorney to mitigate liability
How Do I Prove I Didn't Damage My Rental Car?
Proving that damage to rental vehicles was not caused by your doing can be challenging; however, there are methods you can use to increase your chances of proving that you did not cause any damage to the car.
One of the first ways to prove you didn't cause damage to a rental car is to take photos of the rental vehicle and document any pre-existing damage.
Another way is to request a final inspection of the car upon drop-off to ensure no new damage. Doing this will ensure that you are not surprised by any vehicle repair charges later.
Who Pays for Rental Car Damage
When a rental vehicle is damaged, numerous parties may be responsible for covering the expenses.
Common responsible parties include:
- You
- Your auto insurance
- Your credit card company
- The rental company
- Another driver or company
- Third-Party or travel insurance
Can the Rental Car Company Be Liable for a Car Accident
Rental car companies are rarely held liable for car accidents involving their vehicles, but if the accident was caused by negligent maintenance, negligent entrustment, or the rental company violated safety regulations, they could be held liable for the accident.
However, it's highly unlikely a rental car company will be held liable for a car accident as the Graves Amendment stands to protect against such liability.
How Common Is Damage to Rental Cars
Around 10% of rental vehicles come back with some form of damage, making damage to rental cars relatively common.
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Rodney Okano Car Accident Lawyer is a Las Vegas personal injury law firm with over 20 years of experience helping clients obtain maximum compensation following injuries from accidents such as car crashes, worksite injuries, and slips and falls. Over those years, The Rodney Okano Car Accident Lawyer Law Firm has become an experienced law firm that can ensure exceptional results for any of its clients.
