What Happens If You Crash a Rental Car? Know Your Liability

Posted October 15, 2024

Car rentals are popular, especially in Florida, where visitors often opt for rentals to avoid long road trips. People also rent vehicles when their car is being repaired when they’re traveling for business or leisure, or if they don’t own a car but need a reliable way to get around. With so many drivers using rental cars for various purposes, accidents involving them are on the rise. Whether you’re involved in a rental car accident, it’s important to understand what happens if you crash a rental car. Here, we break down what you need to know about accidents involving rental cars, from insurance coverage to steps you should take if you’re involved in a crash.

What Happens if You Crash a Rental Car: Understanding Liability in a Rental Car Accident

So, what happens if you crash a rental car? Liability in car accidents can be confusing, but when a rental car is involved, it becomes even more complicated. Determining who is responsible—and whose insurance will cover the damages—depends on various factors, such as who caused the accident and the type of insurance coverage in place.

Personal Liability

If you are driving a rental car and are at fault for the accident, your personal auto insurance will typically be the first line of defense. Most personal policies extend to rental cars under the “temporary replacement” provision, but it’s crucial to verify this with your insurance provider before renting. Additionally, in Florida, your Personal Injury Protection (PIP) insurance will kick in to cover medical expenses and lost wages up to a certain amount, regardless of fault. Florida is a no-fault state, which means each driver turns to their own insurance company to cover their damages after a car crash, regardless of fault. PIP coverage allows each party to rely on its insurance policy and every Florida driver must have PIP coverage in their auto insurance policy.

“The valid and collectible liability insurance and personal injury protection insurance of any authorized rental or leasing driver is primary for the limits of liability and personal injury protection coverage required by ss. 324.021(7) and 627.736, Florida Statutes.” Fla. Stat. Ann. § 627.7263.

Florida Statutes 627.736 covers required personal injury protection benefits. Under this provision, a car insurance policy that follows Florida law must provide personal injury protection (PIP) to cover medical bills and lost wages. This protection applies to the person named on the policy, their relatives living in the same home (unless excluded), anyone driving the insured car, passengers in the car, and even pedestrians hit by the car. PIP covers medical expenses and lost income, as well as death benefits in a fatal car accident, up to a certain amount for drivers and passengers after a car accident.

Rental Company Liability

Rental companies are generally shielded from liability under federal law, specifically the Graves Amendment. This law protects rental car companies from being held liable for injuries caused by their customers, unless there is evidence of negligence or criminal wrongdoing on their part. According to Florida Statute 324.021, rental car companies have protections through the Graves Amendment. They cannot be held vicariously liable for a renter’s actions in causing motor vehicle accidents. Before the law was enacted, rental car companies could be named as liable parties in claims and lawsuits. Rental car companies in Florida have a maximum injury liability exposure of $10,000.00 to any single person injured or killed in a car accident, and $20,000.00 total per car accident regardless of the number of people injured or killed. However, this does not mean the rental company is entirely off the hook—certain fees and penalties may apply depending on the rental agreement and the type of insurance coverage purchased.

What Happens if You Crash a Rental Car Without Insurance

Insurance Coverage Options for Rental Car Accidents

When renting a car, understanding what happens if you crash a rental car without insurance is paramount. Here are the three main sources of insurance coverage:

1. Your Personal Auto Insurance

If you already have personal car insurance, it may extend to rental cars. This typically includes liability, collision, and PIP coverage, depending on your policy. It’s always wise to double-check with your insurance provider to ensure your coverage applies to rental vehicles and to confirm the extent of protection offered.

2. Rental Car Insurance

If you do not have personal car insurance, or if your personal policy does not apply to a rental car, rental companies offer supplemental policies for an additional fee to protect in case you are in an accident while in a rental vehicle.

Supplemental insurance may include:

Collision Damage Waiver (CDW) – covers your rental car if damaged or stolen. Without CDW, the rental company could charge you for diminished value, loss of use, or towing.
Supplemental Liability Insurance – covers property damage and bodily injury you may cause others while renting the car.
Personal Accident Insurance – covers medical bills for yourself or passengers if you are injured in an accident while driving the rental. This covers accidental death and dismemberment, ambulance, and medical expenses.
Personal Effects Coverage – covers your personal property if it is stolen from the rental car or damaged in an accident while you are renting.
Roadside Assistance – covers help you might need while renting: changing a tire, running out of gas, jumpstarting, towing, or locksmith services.

While this additional coverage can provide peace of mind, be sure to weigh the costs against what your personal insurance already covers.

3. Credit Card Coverage

Some credit cards offer limited rental car insurance benefits when you use the card to pay for the rental. These benefits often include coverage for damage to the rental car (CDW), but they rarely cover liability or personal injuries. Make sure to review the terms with your credit card company before relying solely on this type of coverage.

The coverage that most credit cards offer, typically for damage to or theft of the rental car, kicks in after your personal auto insurance pays. But that secondary coverage can be valuable. It could reimburse you for your auto insurance deductible.

Most major credit card companies, including Visa, Mastercard and American Express all offer some form of rental car coverage for cards on their networks. However, the coverage on any particular card can vary according to the bank that issued it, and even cards from the same issuer can have different levels of coverage.

For more details on credit card rental car coverage, you can refer to NerdWallet’s article, Rental Car Insurance: How Your Credit Card Has You Covered which explains how many credit cards offer rental car insurance as a perk, covering damage or theft of the vehicle as long as the card is used for the rental purchase .

Steps to Take After a Rental Car Accident

Being involved in a car accident is stressful, and the situation can be even more confusing when a rental car is involved. Here are some key steps to follow:

1. Ensure Safety

First and foremost, prioritize safety. If possible, move the vehicle to a safe location to prevent further accidents, and check for injuries. Call emergency services if needed.

After an accident, be sure to seek immediate medical attention, even if injuries aren’t immediately apparent. You can seek treatment via ambulance at the accident scene, or transport yourself to your local hospital, urgent care, or doctor’s office. Some conditions, like concussions or internal injuries, may not show symptoms right away but can worsen if left untreated. Medical professionals will assess the full scope of your injuries and provide a treatment plan that could include physical therapy, pain management, or surgery. Following medical advice is key to recovery, and ongoing support from healthcare providers can help ensure your body heals properly over time.

In Florida, it’s required to have a medical check-up within 14 days of the accident to ensure your Personal Injury Protection (PIP) coverage applies. This requirement is part of Florida’s no-fault insurance laws, specifically outlined in Florida Statutes §627.736.

2. Call the Authorities

Make sure to report the accident to the police. A police report will serve as an official record of the incident and is a vital piece of evidence when filing your car accident case.

3. Document the Scene

Take pictures of the damage to all vehicles, and collect contact information from the other driver(s) and any witnesses. In addition to typical post-accident documentation, make sure to take note of the rental car’s insurance information, which is often found in the glove compartment.

For more guidance on gathering evidence from a car accident, review Lipinski Law’s blog: 5 Types of Evidence That Can Disappear Quickly After an Auto Accident

4. Notify the Rental Company

Immediately inform the rental car company about the accident. Failing to report the accident in a timely manner could result in additional fees or penalties and may affect insurance coverage.

Common Questions About Liability in Rental Car Accidents

Am I responsible for damages if I crash a rental car?
If you are at fault, you will be responsible for damages, though your personal insurance or the supplemental insurance you purchased from the rental company will likely cover some or all of the costs.
What happens if the rental car is a total loss?
In the case of a total loss, your insurance (or the rental car company’s coverage) should cover the vehicle’s value, minus any deductibles.
Can I sue a rental car company for an accident?
In most cases, rental car companies are not liable for accidents caused by their customers, unless there is evidence of negligence on the company’s part.

Conclusion

Car accidents involving rental cars can introduce extra layers of complexity, particularly when it comes to determining liability and insurance coverage. If you live in Florida, your PIP insurance will cover certain damages, but it’s wise to consider supplemental coverage—either through the rental company or your credit card—to protect yourself further. Understanding your insurance options before renting a car can help you avoid expensive surprises in the event of an accident. Stay informed, drive safely, and always be prepared.

Need More Information About an Accident with a Rental Car in Florida?

If you’ve been involved in a car accident with a rental car, don’t face the complexities alone. Understanding liability, insurance claims, and rental agreements can be overwhelming, but our team at Lipinski Law is here to help. Whether it’s understanding your rental insurance or pursuing an auto accident lawsuit, we’re ready to provide the support you need. Reach out for a free, confidential consultation at lipinskilaw.com/contact or call us at 561-453-4800. Let us be your trusted car accident attorney and help you get back on the road to recovery!

At Lipinski Law, we understand the complexities of a car accident case. Our dedicated team ensures your voice is heard throughout your claim. We fight for not only the financial compensation you need but also the closure you deserve. Choosing Lipinski Law for your auto accident means entrusting your case to a firm that blends legal mastery with genuine concern for your well-being. With every step, with every piece of evidence, and through every legal argument, we prioritize what matters most—your healing and your compensation. Seeking professional guidance can help you achieve a fair resolution and focus on recovery.

Don’t stand alone against the daunting aftermath of a car accident. Contact Lipinski Law at 561-453-4800 or via https://lipinskilaw.com/contact/ for a free, confidential consultation today. Let us help you navigate the complexities and secure the car accident settlement you deserve.

Lipinski Law, based in Jupiter, proudly serves clients throughout Palm Beach County, including but not limited to Jupiter, Tequesta, Palm Beach Gardens, North Palm Beach, and West Palm Beach. We also accept cases throughout the state of Florida.

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