Who Pays for Damages?
Determining financial responsibility after a rental car accident depends on several factors, including the coverage options you selected and who was at fault in the accident.
When You’re At Fault
If you caused the accident and purchased the rental company’s Collision Damage Waiver or Loss Damage Waiver, the rental company typically waives its right to collect for vehicle damage, regardless of fault. This provides the most straightforward resolution, as you’ll complete the rental company’s accident report, and they handle the rest with minimal involvement from you, even for significant damage.
If you declined the rental company’s coverage, your personal auto insurance policy’s collision coverage will pay for rental car damage up to your policy limits, minus your deductible. Your credit card coverage may then cover your deductible or costs that exceed your personal policy limits, provided you declined the rental company’s coverage and used that specific card to pay for the rental. In situations where you declined all coverage options or damages exceed all available coverage limits, you may be personally responsible for the remaining costs, which can be substantial.
When Another Driver Is At Fault
When another driver causes an accident, their liability insurance should cover your injuries and rental car damage. This process involves filing a third-party claim with their insurance company, which will investigate the accident to determine fault before paying for damages. In most cases, you’ll need to provide documentation, including the police report, photos of the accident scene, and medical records.
If the at-fault driver has insufficient or no insurance, your own uninsured/underinsured motorist coverage may apply to cover your damages. Additionally, in some states, your personal injury protection or MedPay coverage may pay for your immediate medical expenses regardless of fault. The rental company’s supplemental coverage, if you purchased it, may provide additional benefits for situations not fully covered by the at-fault driver’s policy, offering an extra layer of protection during your travels.
Types of Damages You May Be Entitled To
After a rental car accident, you may recover various damages related to the vehicle itself, including repair costs to restore the rental to its pre-accident condition and loss of use charges representing the rental company’s lost revenue while the vehicle is being repaired. You might also be responsible for diminished value, which represents the reduction in the rental vehicle’s market value even after repairs, a significant consideration with newer rental vehicles.
Personal damages often form a larger portion of accident claims, particularly in more serious incidents. These may include compensation for medical expenses covering emergency care, hospital stays, doctor visits, medication, and rehabilitation. You may also recover lost wages for time missed from work due to injuries, compensation for pain and suffering resulting from physical pain and emotional distress, reimbursement for personal belongings damaged in the accident, and additional transportation costs if your rental becomes undrivable after the incident.
What Happens After a Rental Car Accident
If you’re involved in an accident with a rental car during your summer travels, taking the proper steps can significantly impact who ultimately pays for damages.
Following an accident in a rental vehicle, you should:
- Ensure everyone’s safety and seek medical attention if needed
- Contact local police to file an accident report
- Document the scene with photos, including vehicle damage, license plates, and the surrounding area
- Exchange information with other drivers involved
- Notify the rental company immediately
- Contact your personal auto insurance company
Failing to report the accident promptly to both the rental company and your insurer could jeopardize your coverage and lead to additional charges.
Partner With Experienced Accident Attorneys
Navigating the aftermath of a rental car accident during summer travel can be overwhelming, especially when dealing with unfamiliar insurance policies and rental agreements. The attorneys at Taylor, Odachowski, Schmidt & Crossland, LLC have extensive experience helping clients understand their rights and responsibilities following vehicle accidents of all types.
We provide comprehensive legal guidance to ensure you receive proper compensation for injuries and damages while protecting you from unfair claims. Our attorneys understand the nuances of insurance coverage issues and can help you navigate the complex process of determining who pays for damages after a rental car accident. To discuss your rights following a rental car accident, contact Taylor, Odachowski, Schmidt & Crossland, LLC today at (912) 634-0955 or through our contact form.
