No one plans to get into a car crash with a rental vehicle, but it happens often. You should know that insurance coverage, liability issues, and claims procedures differ significantly from those for standard vehicle crashes. Whether you were the rental car driver or the other party, knowing what to do afterwards can protect your legal rights.

Who Pays for Damages?

Liability depends on who caused the crash and what insurance coverage applies. If another driver caused the collision, their insurance should cover damages. When you are at fault, your personal auto insurance may extend to rental cars. Rental companies offer optional insurance products, and credit card companies sometimes include rental car coverage as a cardholder benefit.

Can the Rental Company Hold Me Responsible for Crash Costs?

Rental companies may seek payment for vehicle damage, loss of use while the car undergoes repairs, and administrative fees. Your rental agreement outlines your financial responsibility. Without adequate coverage, you could face significant out-of-pocket expenses. Some companies attempt to bill renters for the full vehicle value even when the damage is repairable. You have the right to dispute unreasonable charges.

How Do I Pursue a Claim If Someone in a Rental Car Injured Me?

If they are found liable, the driver who caused the crash bears primary responsibility for your injuries and property damage, regardless of vehicle ownership. File a claim with that driver’s personal auto insurance first; they may have opted for additional coverage from the rental company. If that coverage proves insufficient, you may need to challenge their offers or take them to court.

What If the Rental Car Driver Had No Insurance?

Your uninsured motorist coverage should provide coverage when an at-fault driver lacks insurance. Some rental companies provide minimum liability coverage that applies when renters decline additional insurance options; state law may require rental companies to provide certain baseline coverage. The at-fault driver remains personally liable even without insurance, though collecting payment from an uninsured party can prove difficult.

Does My Personal Auto Insurance Cover Rental Cars?

Many personal auto insurance policies extend liability coverage to rental vehicles. Collision and comprehensive coverage may also apply, subject to your policy terms and deductibles. However, coverage varies by insurer and policy type. Review your specific policy or contact your insurance agent before renting a vehicle. Some policies exclude certain rental vehicle types, such as luxury cars or large trucks.

Should I Purchase the Rental Company’s Insurance?

Rental company insurance provides protection when your personal coverage falls short or does not apply. That supplemental liability insurance increases coverage limits beyond what your personal policy provides. These products add daily costs but may prevent substantial out-of-pocket expenses in the event of a crash. Before deciding, weigh the additional expense against your existing coverage and the potential financial risk.

What Is Loss of Use, and Am I Liable for It?

Loss of use refers to the income the rental company loses while a damaged vehicle undergoes repairs. Rental companies often charge daily rates for each day that the vehicle remains out of service; these charges can accumulate quickly and substantially increase your total costs. Some insurance policies cover loss-of-use charges, while others do not. You may be able to challenge excessive loss of use claims that appear unreasonable given the actual repair timeframes.

Can I Be Held Liable for Diminished Value?

Diminished value represents the difference between a vehicle’s worth before a crash and its reduced market value after repairs. Some rental companies claim this loss even after proper repairs restore functionality. Liability for diminished value depends on your rental agreement terms and applicable insurance coverage. Not all states recognize diminished-value claims, and the requirements for proving such losses vary by jurisdiction.

Our Experienced Rio Rancho Car Crash Lawyers at Buchanan Law Firm, LLC Help Clients With Rental Car Crash Claims

If you were involved in a rental car crash and need legal advice, contact our Rio Rancho car crash lawyers at Buchanan Law Firm, LLC. Call 505-900-3559 or complete our online form today for a free consultation. Located in Albuquerque, NM, we serve clients in the surrounding areas.