Rental Car Accident: Who Pays and Settlement Guide

Getting into an accident while driving a rental car raises complex insurance questions. Multiple insurance policies may apply, and understanding which coverage pays for what is essential to protecting your financial interests.

Insurance Coverage for Rental Car Accidents

Your personal auto insurance typically extends to rental cars, providing the same coverage you have on your own vehicle. Credit card rental car coverage may provide collision damage waiver coverage if you paid for the rental with that card. The rental car company's insurance is available for purchase at the rental counter. The at-fault driver's insurance covers your damages if the other driver caused the accident.

If You Caused the Accident

Your personal auto insurance liability coverage pays for the other driver's damages. Your collision coverage pays for damage to the rental car. If you do not have personal auto insurance, the rental company's insurance or your credit card coverage may apply.

If the Other Driver Caused the Accident

The other driver's liability insurance covers your damages including medical expenses, lost wages, and pain and suffering. You file a claim against their insurance just as you would in your own vehicle.

Loss of Use Claims

Rental car companies may file a loss of use claim for the revenue they lost while the damaged rental car was being repaired. This claim is typically covered by your personal auto insurance or the rental company's insurance you purchased.

Conclusion

Rental car accident claims involve multiple potential insurance sources. Understanding your coverage before you rent is the best way to protect yourself.

Use our free settlement calculator to estimate what your case might be worth.