Auto Insurance Claims: auto accident, casualty insurance broker, property casualty insurance

Question
Hello,

I was recently involved in an auto accident. I was a passenger in a rental vehicle of which the renter/driver was uninsured (he provided bogus insurance information), he also declined coverage from the rental car agency, leaving him with absolutely NO coverage.

Unfortunately, I sustained some injuries that will require prolonged medical treatment and physical therapy. With that said, I dont know exactly how far a case would go against either party.  My attorney has offered me very little to be hopeful for thus far.  Certainly in my mind, not only is the driver negligent for unlawfully driving without insurance, but could it be considered a breach of duty to the public that a rental agency would not verify insurance coverage prior to renting a vehicle out?  At this point in time, I am exploring the possibility of filing a suit against the rental agency for not doing their part to uphold state law and to exercise social responsibility in keeping uninsured drivers from procuring a vehicle from a rental fleet.

Answer
Hi Stephen,
I am sorry to hear of your serious injuries and do wish you a full recovery.
Since you have obtained an Attorney and I am a Licensed Property/Casualty Insurance Broker, I have to walk a fine line and only offer suggestions and opinions, being careful to not offer any free legal advise that could jeopardize my license.
It is normal and standard that the rental company provides the basic minimal Bodily Injury and Property Damage coverage as demanded by the state in which the car was rented.  The additional 'insurance' offered by the rental agency is not truly an insurance policy but something of their own design, usually called CDW which will cover damage to the car and coverage for the loss of rental use while the car is in the shop.  Any person, whether insured or not has the right to reject that coverage and assume responsibility for the full value of the car and the cost of loss of rental revenue.  I am not aware of any rental company that provides medical coverage as part of their CDW package.  In my opinion, you have no 'breach of contract' claim against the rental agency, nor would you find an attorney willing to file suit against them.
You provided absolutely no details of the accident, but your friends failure to carry insurance is definitely NOT a contributing factor.
When the investigation of this accident is complete, either the other party will be found 100% at fault, your friend will be found 100% at fault or each will be found partially at fault and a percentage degree of fault will be assigned to each driver.  Your attorney will have an opportunity to collect 100% from the adverse driver, a percentage from the adverse driver or if your friend is 100% at fault, your attorney can claim against his assets (if any).
If your friend is partially or 100% at fault, you should ask your attorney to look into a claim against the basic liability coverage of the rental agency.
If you carry your own personal auto insurance policy or are named as a resident relative driver on your parents policy, you need to look into filing a claim against that policy for medical coverage and possibly uninsured motorist coverage or underinsured motorist coverage.
I hope this has been of help, please write again if you feel that I can provide more assistance.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area 12-09-07 9:00 AM PST