Rental Car Accident: What Happens If You Crash a Rental Car?

Collecting yourself after a car accident can be challenging, especially if you’re injured. Sometimes, having a procedure to follow can help you make immediate sense of the situation. Here are the basic steps you should follow after a rental car accident. 

1. Notify the authorities 

Call 911 and let them know you’ve been in an accident. Report your location and advise paramedics if anyone is in critical condition or needs immediate medical assistance. If it’s safe to move your vehicle from traffic, do so. Otherwise, put your hazards on and wait for the police in a safe place. 

2. Collect information 

If you can contact the other drivers on scene, exchange information, including phone numbers. Ask for the name of the responding police officer for later reference. Write down or take pictures of insurance information and note what you can about the accident scene. Placement of vehicles, damage, and any other evidence you can gather can become useful later. 

3. Call the rental company  

Car rental companies know that accidents happen, so they typically provide an emergency number for drivers to call if an accident occurs. You can find this emergency number on your rental contract or in your rental car's owner’s manual or glovebox. If you don’t have access to these sources, you can typically search for the emergency number online. 

When you speak to the rental company, advise them on the vehicle's driveability. If you can drive the vehicle to the nearest car rental location, they may ask you to do so. Otherwise, you’ll need to follow the car to the specified destination, whether a service center or car rental location. The rental car company will then interview you to submit an accident report. 

4. Update your personal auto insurance company 

If you plan on using your personal car insurance for primary coverage, your next call will be to your local representative. Let them know you were involved in an accident with a rental car and that you’ve already spoken to the rental car agency. Relay any information about additional coverage you may have purchased through the rental agency on top of your primary policy.

Whether you rent a car or a rental car alternative, liability for damage caused by a car accident depends on the at-fault party unless otherwise noted by state law. The at-fault party’s insurance coverage takes on the largest burden, but not-at-fault parties may also choose to use their personal insurance policies. Each rental car accident varies in what coverages apply. 

For example, the at-fault driver may have coverage options through a personal car insurance policy, the credit card company they used to pay for the rental vehicle, and any additional coverage they purchased from the rental car company. Most drivers rely on their personal insurance policy since it provides the most coverage. However, coverage limits may vary based on the situation, so a credit card policy or additional rental car coverage may suffice. 

Preparing for a rental car accident means more than just worrying about the best time to rent a car or which rental car company offers the lowest rates. Instead, preparations involve the following steps: 

1. Review your personal car insurance policy, noting any coverage limits related to rental cars. If you’re unsure of collision coverage, speak to a representative before you visit the rental car counter. 
2. If you plan on using a credit card that offers rental insurance coverage, read through the fine print to determine whether it qualifies as primary or secondary coverage. While primary coverage provides you the full benefit of this perk, most car rental coverage via credit cards kicks in after your primary car driver’s insurance or the coverage you selected from the rental car company. 
3. Determine what coverage, if any, you want to purchase at the counter. Weigh the cost of coverage against the potential benefits. An extra $20 to $40 daily often costs you much less than the liability coverage involved in a rental car accident. 
4. If you have questions about coverage, contact a car rental company representative. Keep your rental car contract in a safe place, or ask for it via email. Carry an updated version of your primary car insurance policy and any related contact information.
   
   

You can also rent a larger car or one ranked high in safety. You can check the safety ratings of nearly every rental car by visiting the National Highway Traffic Safety Administration (NHTSA) or the Insurance Institute for Highway Safety (IIHS). 

What if an unauthorized driver causes the rental car accident?

When you sign a rental car contract, you agree to specific terms and conditions that qualify only you and any additional drivers listed as covered. Assuming the liabilities of being named as a driver on the rental contract is one of the many reasons you can’t rent a car for someone else. If an unauthorized driver causes the rental car accident, your name remains the liable party on the rental agreement. Depending on the circumstances, you may be held liable for damages. 

What if your personal vehicle is hit by a rental car?

If your personal vehicle is hit by a rental car, you should follow the same procedures of ensuring everyone involved is safe and contacting the authorities. Obtain contact information from the rental car driver, as your primary auto insurance carrier will need to speak with the rental car agency. The finer details of reimbursement will depend on what insurance coverage the driver elected. 

Rental car insurance isn’t required on the list of what you need to rent a car. Car rental companies must carry the state minimum car insurance requirements on their fleet, so some coverage already applies. Whether you want additional coverage depends on your personal preference. 

Most rental car companies will offer the following as additional coverage: 

• Collision damage waiver: Also known as a Loss Damage Waiver, this coverage helps you avoid the costs of vehicle damage and any associated fees, including loss of use fees. 
• Supplemental liability insurance protection: Rental cars carry the state minimum level of liability, but this policy augments that for additional protection. 
• Personal accident insurance: Similar to personal injury protection (PIP) insurance, this type of insurance covers you and your passengers and alleviates any burden on your health insurance plan. 
• Personal effects coverage: If your personal belongings are stolen or damaged while in a rental car, this coverage reimburses you.  

You can also purchase third-party rental car insurance coverage or seek out an umbrella policy. If you drive rental cars often but don’t have a personal car to insure, you can also purchase non-owner car insurance. 

Who covers the damage to a rental car if you have insurance? 

The party responsible for covering any damage to the rental car depends on the situation. If you incur minor damage to the vehicle, such as a scratch or dent, available rental car policies often cover repair costs if you select them. If you’re involved in a rental car accident, you can elect to use your personal car insurance policy to cover damages, regardless of fault. 

How does a rental car accident affect your insurance? 

A rental car accident can affect your insurance premium. Not-at-fault accidents will impact your premiums less than if you were at fault. If you are involved in a rental car accident, you may also up your coverage limits afterward for a more comprehensive policy. 

What happens if you crash a rental car without insurance?

The minimum state requirements for car insurance held by the rental car company provide coverage if you don’t have personal car insurance. Any additional coverage you elected will also apply. However, like carrying the state minimum requirements on your own car insurance policy, coverage will only go so far before you assume any further liability.   

Do your premiums go up if you get into an accident in a rental car? 

Your car insurance premiums will likely increase if you get into an accident in a rental car. However, it depends on who was at fault, what policy you used to cover any damage and the extent of the accident. If you were at fault or used your primary car insurance policy, you may see a rate increase the next time you renew.