Auto Insurance Claims: Unauthorized driver of rental car had accident, rental car company, adult son

Question
QUESTION: Dear Mr. Hixenbaugh

My adult son rented a car listing only himself as an authorized driver. He allowed another person in his group to drive and there was an accident. Rental car has major damage. It appears that the other driver may have been at fault but that has yet to be proved and even if proved, the other driver may not have insurance or the ability to pay.

What are the liabilities to my son's friend, the unauthorized driver during the accident?

What are the liabilities to my son, who allowed an unauthorized driver to drive the car?

Thanks for your help.

Joe

ANSWER: HI Joe,

This is a bad situation. Your son will be 100% liable to the rental car company for the cost of repairs, loss of income and diminisihed value of the rental car.

You son will likely then have to file suit against the person he loaned the vehicle to for his negligence in causing collision.

I hope this helps
Richard Hixenbaugh

---------- FOLLOW-UP ----------

QUESTION: Some new information. Preliminary opinion from police who came to the scene and wrote the accident report is that the driver of the other vehicle in the accident was entirely at fault and has insurance. Will this change my son's situation?

Answer
Hi Joe,

It will certainly help your son. When you rent a car, only the people listed on the contract can drive the car. If you let someone else drive the car and they have an accident, even if someone else is at fault, the person who signed the contract is ultimately responsible.

Your son will need to wait until liability is determined and then see if the rental car company will be willing to deal with the at fault drivers insurance. Keep in mind that the rental car company is not obligated to do so. The one resoponsible is your son. So you son may end up having to deal with the at fault drivers insurance company to get things moving. Do not assume that anyone is going to do anything for your son. Be pro-active and stay on top of things. Get everything in writing. Do not trust anyone. Do not sign anything unless you are absolutely sure what it says and means.

I hope this helps
Richard Hixenbaugh