Auto Insurance Claims: Is really this is the law, mental trauma, two ladies

Question
Hello.

I am new to US only 4 months I been here.  I involved in an accident with my rental car last week which is making me mentally disturbed.  The incident took place at the exit of freeway.  When I was taking the exit, it usually with uphill then downhill.  Now I was driving in 40 mph taking exit and reached uphill of exit then while moving towars downhill I suddeny saw a car stopped there.  I applied my brake but since due to downhill my car got skidded and hit on the rear of the other car.

Now the scenario follows:

I saw two Ladies coming out of the car with MAP of the road in their hand.  I still assuming that they might have confirming the route being stopped the car at the middle of the road.  There was no other lane.  Only one lane was exist on the exit.

Secondly I called the police, and they identified no one was injured.  And later they asked both of us party to exchange the information an they neither made the report of the incident nor issued ticket (thanks for that), but they said that it is the mistake of mine 'coz I hit at the rear of their vehicle.

Now my insurance is as follows:

I get insurance thru my credit card company which covers only CDW.  But not Liabilty Insutance not I have one.

I got a notice today that, if the other party claim anything it will go from my pocket.  And everyone around me says that this is LAW where if you hit at the rear you ae liable for everything.

Note:  As far as I noticed, during the incident they dnt have any injuries nor the car have major damages.

My question is "IS REALLY THIS IS THE LAW".

And advise me to overcome this mental trauma.  I am really having kind of mental trauma.  Please help

Answer
Hi Shafeer,
Every state has a law saying that you must drive in a manner that would enable you to stop no matter what unforeseeable incident takes place ahead of you.
This means that any time that you rear end another car, you are 100% at fault and responsible for all damages and injuries.
Who sent you the letter saying that if there is a claim, it will have to come out of your pocket?  Was it the car rental company or your own insurance company?
No matter which one sent it, this does not seem like an accurate statement.  The car rental firm always provides Bodily Injury Liability and Property Damage coverage in accordance with the minimum amounts required by the state law in the state that you rented the car.  Your own personal insurance policy provides an extension of coverage to a 'temporary substitute automobile' and a rental car falls in that category.
If you have not yet reported this accident to your own insurance company, you need to do that TODAY.
The only advise that I can give you regarding your mental trauma is to see a Doctor.
I will be out of town for the next 3 days.  If you have any follow up questions, you can ask them after 4 PM PST on December 3rd.  If you do ask a follow up question, please tell me your state of residence, the state where you rented the car, the name of the rental company and exactly who sent the letter that you refer to in your question.
I hope that this has been of help.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area 11-30-07 12:35 AM PST