Travel is supposed to be enjoyable. The thrill of visiting someplace new, the relaxation of stepping away from the daily grind, and the enjoyment of experiencing something new and different. But, even when away from home accidents can happen. If you experience a motor vehicle accident in a rented car, whose insurance pays?
After a car accident, it is not uncommon for a lot of finger pointing to take place. The people involved in the accident blame one another, insurers try to pass liability to the other company, etc. This finger pointing can be even worse when one of the parties was driving a rental vehicle.
Generally, when renting a car, the renter is given an option to buy insurance. In most states, this coverage is optional, but in a few jurisdictions it is mandatory. This supplemental coverage is designed to protect you in the event of an accident in the rented vehicle, and usually keeps any liability from flowing to your personal insurance carrier.
If you refuse this coverage, in most cases your own insurance provider becomes liable for the damages just as if you were driving your own car. However, in some cases it is possible for the insurance company to preclude coverage when the driver is operating another person's vehicle. This is usually included in the insurance policy, itself, and is only valid in the handful of states that allow this practice.
So, what happens if you are from a state that allows insurers to avoid covering accidents that occur in someone else's vehicle, but rent a car in a state that allows you to waive rental coverage? This could create a situation in which you are an uninsured motorist. Typically, the other person's insurance will pick up most of their initial costs under an uninsured motorist policy. But, they may pursue your personally for any damages you caused in order to reimburse the insurance fund.
Finding yourself bare of all coverage like that could be terrifying, but some other option to consider before giving up all hope is your credit card. Some credit cards offer some form of insurance for rental vehicles as an automatic perk of using the card. Provided you paid for the rental vehicle using this card, you may have rental coverage automatically, regardless of your own insurance policy or whether you waived coverage during checkout. Another place to check is your homeowners insurance. Sometimes these policies protect the insured against events that occur outside the house (i.e., when renting a car), but terms vary widely so check your individual policy.
Of course, from a strictly legal standpoint, it may be wise to seek coverage from the rental counter whenever possible just to avoid finding yourself completely bare. Usually, the associated fees are quite minimal (typically only a few dollars), but the potential benefits in the event of an accident could be enormous. However, it is important to understand that this is not usually an actual insurance policy. After all, the rental car company is in the business of renting vehicles, not selling insurance. As such, the coverage will usually protect against out-of-pocket expenses and medical bills in most cases except where there is clear negligence on your part.
What Should You Do After an Accident in a Rental Car
Obviously, the first few steps are the same as after any accident. Check to make sure you and your passengers are okay, then check on the other driver. Seek medical attention if needed. Contact law enforcement to have a police report about the event prepared and notify your insurer of the accident.
Next, you will need to contact the rental car company to report the accident. Most rental companies include either a sticker affixed in a prominent location inside the vehicle or paperwork in the glove box that contains information about who to call in case of an accident or emergency.
Depending on the circumstances of the accident, this may also be the best time to contact your attorney. If you do not have an attorney, or do not have one where the accident occurred, you can find one in your area by visiting HG.org and searching by area of practice and location. An attorney can guide you through the process of reporting the accident, making insurance claims, and dealing with the rental car company.
Needless to say, the experience of having a car accident in a rented vehicle can be quite harrowing. But, with an attorney on your side and a little knowledge, you will be able to emerge from the experience unscathed.
