What to Do After a Rental Car Accident: Legal Guide

Most of us get a rental car when we travel on vacation. A rental vehicle is often part of a travel package from your credit card company or travel agency. Driving an unfamiliar car in a different state or city can put you at risk of a car accident. What should you do if you have an accident in a rental car?

For the most part, you’ll take the same follow-up steps after a rental car accident as you would for any other motor vehicle accident. However, there are some things that you should do that can help you avoid paying extra if you have a rental vehicle accident.

What to Do After a Rental Car Accident

After any car accident, you should take some steps to preserve evidence for a potential personal injury claim:

• Report the accident to law enforcement: In most states, you must report any accident with injuries, fatalities, or property damage above a certain amount. It’s usually better to err on the side of caution and make a report. Even if you call 911 and law enforcement does not respond, you still need the incident report for your insurance claim.
• Seek medical attention: Even if you feel okay, always have a medical professional check you out after an accident.
• Document the damage: Even photos of the vehicles are useful, but if you can get pictures of the road and the area, it can bolster your case. You should also get contact information for any witnesses.
• Get the other driver’s information: You’ll need their driver’s license number, insurance information, and contact information.

If you didn’t get a police report at the scene, you can make a report after the fact at a local police station. You can also file a report with the state Department of Motor Vehicles (DMV) where the accident occurred. Most states require reports to be made within a few days of the accident, so it’s important to do this right away.

You should do all these things for any auto accident. However, you must take a few additional steps after a rental car collision.

Notify the Rental Car Company

After an accident, you should contact the rental company as soon as possible. Most rental agencies give renters an emergency contact card or put a sticker inside the glove box or on the sun visor. The company may want you to fill out an incident report or other accident report.

If the car needs repairs, the rental agency may have it towed to its own garage or tell you where to take it. Usually, they will provide you with a new car according to the terms of your rental agreement.

Your rental contract may limit who can drive the vehicle. For instance, only the renter or only licensed adults. Be sure that no one else drives the car. Otherwise, you may void any insurance coverage you buy from the rental agency.

Contact Your Insurance Company

Most personal auto insurance policies include rental car protection. You must contact your insurance provider according to your policy requirements. They may want you to file an accident report with local law enforcement.

When you travel, it’s a good idea to check your insurance coverage before you leave. Your existing coverage can determine the type of rental car insurance you include with the rental. Review your insurance policy coverage for:

• Collision coverage and comprehensive coverage, such as towing and battery replacement
• Maximum liability coverage
• Total deductible and out-of-pocket amounts

In general, your personal car insurance follows you, so your insurance might pay for the rental car damage and your medical bills after an accident. But this varies significantly by insurance company and policy. Some policies exclude rental cars entirely, while others cover rental cars but with limitations. It’s important to double-check your policy details, rather than assume you’ll be covered.

For purposes of legal action and determining fault, the laws of the state you are in will apply. You may need to sue the at-fault party to recover damages not covered by insurance. A personal injury attorney with experience in car accidents can explain this process and help you file a claim for damages if necessary.

Primary and Secondary Insurance

When you sign the rental agreement, the agent will give you the option of supplemental rental car insurance. Depending on what your personal insurance covers, you may want to purchase supplemental insurance coverage.

Rental agencies may offer several coverage options:

• Collision damage waivers (CDW), or loss damage waivers (LDW) cover vehicle damage or loss from theft or collision. They do not cover personal injuries or medical expenses. CDWs typically don’t cover damage when an unauthorized driver is operating the vehicle. But they generally do cover damage caused by other drivers in accidents where the renter is not at fault.
• Supplemental liability coverage acts as gap insurance if your own coverage does not include rental car insurance. Supplemental liability coverage pays any damages your personal injury protection (PIP) or liability insurance does not pay.
• Personal accident insurance is essentially gap coverage for your health and auto insurance policy. Like supplemental liability coverage, it pays the expenses not covered by your existing insurance.
• Personal effects coverage insures your personal property inside the rental car. It pays for any items stolen or damaged during the vehicle rental period.

Credit Card Insurance and Package Insurance

If you’re traveling on a credit card or got the car through a travel agency as part of a package deal (airplane/hotel/vehicle), they may offer rental car coverage as part of the deal.

Travel cards and agencies may provide adequate secondary or gap coverage, but should not be used as primary insurance. They have low coverage limits and may not cover luxury vehicles, long-term rentals, or overseas rentals.

If you get this secondary coverage, you will need to file an insurance claim with the credit card insurance provider as you would with your own insurance company.

If You Caused the Accident

If you’re determined to be at fault for the rental car accident, the situation becomes more complex and potentially expensive. Here’s what you might face:

• Financial Responsibility: You may be liable for damage to the rental vehicle, the other party’s vehicle, property damage, and any injuries. Without adequate insurance coverage, these costs can be substantial.
• Insurance Coverage: Your personal auto insurance liability coverage should cover damages you cause to others, but you’ll need collision coverage to pay for damage to the rental car. If you don’t have collision coverage or declined the rental company’s collision damage waiver (CDW), you could be personally responsible for the full cost of repairing or replacing the rental vehicle.
• Rental Company Charges: Beyond repair costs, rental companies may charge additional fees such as loss of use (compensation for the time the vehicle can’t be rented while being repaired), administrative fees, and diminished value claims if the car’s resale value is affected.
• Legal Consequences: Depending on the severity of the accident and state laws, you might face traffic citations, license points, or in serious cases involving injuries, potential criminal charges. Your insurance rates will likely increase after an at-fault accident.
• Claims Process: You’ll need to work with your insurance company to handle claims from the other parties involved. If damages exceed your policy limits, you could be personally sued for the difference.

If the other driver files a legal complaint against you, consider speaking with a personal injury defense attorney who can help protect your interests.

Get Legal Advice from a Car Accident Lawyer

Whether you are the victim or the at-fault driver, having an accident with a rental car is more complicated than one in your own vehicle. The car rental company and credit card company may have their own insurance forms. If you’re in another state, you may have other state accident laws to deal with.

If you find yourself in an accident with a rental car, contact a personal injury attorney near you. A personal injury lawyer experienced with car accidents can help you gather the evidence you need to make a claim. They’ll walk you through the process step by step and advocate for your interests at every stage of your case.