People rent cars, SUVs, vans, and trucks for many reasons. You may need a rental vehicle while your own car is being repaired, while traveling for work or vacation, or simply because you need a different type of vehicle for a particular trip. But when it comes to insurance and liability in a rental car, what happens after an accident?
Determining who is responsible for an accident involving a rental vehicle can be more complicated than a typical car accident because there may be multiple insurance policies and agreements involved.
Depending on the circumstances, coverage may come from the at-fault driver’s insurance, the renter’s personal auto insurance, insurance purchased through the rental company, a credit card’s rental-car coverage, or uninsured/underinsured motorist coverage.
The fact that a vehicle is rented does not automatically make the renter responsible for an accident. If another driver causes a collision with your rental car, that driver’s liability insurance may be responsible for the injuries and property damage they caused. If the rental-car driver caused the accident, the renter’s insurance and the rental company’s available coverage may become important.
Indiana requires motorists to maintain minimum liability insurance of $25,000 for bodily injury or death to one person, $50,000 for two or more people, and $25,000 for property damage in one accident. However, the minimum insurance required by law may not be enough to cover the full extent of a serious accident.
Several different types of liability insurance may potentially apply after an accident involving a rental vehicle.
If you have an existing personal auto insurance policy, it may provide coverage when you drive a rental vehicle. However, coverage varies by policy.
Your policy may provide liability coverage for injuries or property damage you cause to others. Depending on the terms of the policy, it may also provide collision or comprehensive coverage for damage to the rental vehicle.
You should review your policy before renting a vehicle if possible. Pay particular attention to exclusions, deductibles, coverage limits, and restrictions involving certain types of vehicles.
Rental companies generally offer optional products that can provide protection for renters. Depending on the rental agreement and the coverage purchased, these may include:
The specific terms and exclusions vary, so it is important to understand exactly what you purchased.
Some credit cards offer rental-car protection when the rental is paid for with the card. However, these benefits vary significantly from one credit card to another. Some provide primary coverage, while others may provide secondary coverage. Certain types of vehicles, rental periods, locations, or uses may also be excluded.
If you intend to rely on credit-card rental coverage, review the benefits and exclusions before assuming you are protected. It is never wise to assume anything about insurance and liability after an accident in a rental car.
If another driver causes an accident while you are driving a rental vehicle, the fact that you are driving a rental does not necessarily shift liability onto you and change your right to seek compensation through insurance coverage. You may have a claim against the at-fault driver’s insurance for damages caused by the collision.
You may also have additional insurance coverage available through your own policy. Indiana requires insurers to provide uninsured and underinsured motorist coverage unless the insured rejects that coverage in writing. This can be particularly important when the driver who caused the accident has no insurance or does not have enough insurance to cover your injuries.
Property damage can create an additional layer of complications. The rental company may have contractual rights under the rental agreement if its vehicle is damaged. Depending on the circumstances and the insurance coverage available, the rental company may seek payment for repairs or other amounts permitted by the rental agreement after a car accident. Potential charges can include:
Whether these amounts are actually owed and which insurance policy covers them depends on the rental agreement, applicable insurance policies, and circumstances of the accident. This is one reason it is important to notify both your insurance company and the rental company after a collision.
If you are involved in a rental-car accident, take many of the same steps you would take after any other collision.
If anyone is injured or the circumstances require emergency assistance, call 911. A police report can provide important documentation concerning the accident.
Your health should come first. Some injuries, including whiplash, concussions, back injuries, and soft-tissue injuries, may not become apparent immediately after a collision. If you are injured, seek appropriate medical attention and follow your healthcare provider’s recommendations.
If you are physically able, take photographs of everything you can. This should include:
Also obtain contact and insurance information from the other driver and contact information from witnesses.
Contact the rental company as soon as possible and follow the instructions in your rental agreement. Do not assume that reporting the accident to your own insurance company is enough.
Notify your insurance carrier about the accident and provide the information requested. If the other driver’s insurance company contacts you about the rental car crash, remember that the insurer represents its policyholder and its own financial interests, not you, so it will attempt to find ways to shift blame.
Generally, a rental company’s ownership of the vehicle does not by itself make the company responsible for an accident caused by the person renting the vehicle. Federal law generally protects rental companies from being held vicariously liable after a rental car accident simply because they own the vehicle. However, that does not mean a rental company can never be held responsible. Different rules may apply when the rental company’s own negligence or conduct is alleged.
For example, the circumstances may be different if there is evidence involving negligent maintenance, a defective vehicle, or another independent act of negligence. Determining whether a rental company has legal responsibility requires examining the specific facts of the accident.
If the person driving the rental car causes an accident and does not have adequate insurance, other potential sources of coverage may need to be examined. Likewise, if you are injured by an uninsured or underinsured driver while operating a rental vehicle, your own uninsured/underinsured motorist coverage may potentially provide protection depending on the terms of your policy.
Indiana’s Department of Insurance explains that uninsured and underinsured motorist coverage can provide protection when a qualifying accident is caused by a driver who lacks adequate insurance. Insurance coverage can become particularly complicated when several policies potentially apply. Attorney Caleb Fleschner of Fleschner, Stark, Tanoos & Newlin says:
“When an accident involves a rental vehicle, there can be several layers of insurance and contractual issues that don’t exist in a typical car accident. It’s important to determine who was responsible for the crash and then identify every potential source of coverage. An injured person shouldn’t assume that the first insurance company they hear from is the only source of compensation available.”
Liability and insurance can be complicated, and a rental-car accident may involve:
Determining which policies apply, and in what order, can require careful review of the insurance policies, rental agreement, and facts surrounding the accident. This is particularly important when someone suffers serious injuries or when the available insurance coverage is limited.
If you were injured in a crash, you may have questions about insurance and liability in a rental car, what happens after an accident, and how your medical bills and other losses will be covered. The Indiana personal injury attorneys at Fleschner, Stark, Tanoos & Newlin can investigate the circumstances of your accident, identify potentially responsible parties, and help you understand the insurance coverage that may be available.
If you or someone you love has been injured in a rental-car accident, contact Fleschner, Stark, Tanoos & Newlin today to discuss your case and learn more about your legal rights.
Fleschner, Stark, Tanoos & Newlin
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The financial burden that often comes with a serious injury can be too much for many people to bear. Unexpected medical debt, damaged personal property, and the sudden loss of income can impact the budgets of most families. The good news is that a successful injury claim could help reduce that financial strain after a serious accident. Get in touch with a Terre Haute personal injury lawyer with Fleschner, Stark, Tanoos & Newlin to learn more.
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