Renting a car is supposed to be simple until a crash turns the contract’s fine print into the main event. As rental car accidents can bring a number of questions regarding liability and insurance coverage, it is important to know your rights and how you can effectively move forward from this. In this article, we will go over how liability is ultimately determined in the event of a rental car accident!
What Happens if You Get In an Accident While Driving a Rental Car?
Start exactly as you would after any California crash: check for injuries, call 911 if needed, move to safety, and exchange information. Photograph the scene, vehicle positions, damage, license plates, driver’s licenses, and insurance cards. If anyone was hurt (even slightly) or property damage seems significant, file a police report. California also requires drivers to submit a DMV Form SR-1 within 10 days if injuries occurred or the property damage threshold is met.
It is also important to notify both the rental company and your own insurer promptly but don’t admit fault. The rental company will open a claim and may direct you to complete an incident report; your personal insurer will check what coverages extend to the rental (liability, collision, comprehensive, UM/UIM). If there are any complications to your claim or if you require additional assistance, it is recommended to consult with a personal injury attorney.
Who Pays for Damage to a Rental Car?
Typically, in the event of a car accident, the at-fault party would be responsible for paying all damages from car damage to injuries sustained from the accident. However, if both parties are partially at fault, then according to California’s Comparative Negligence rule, the degree of liability will be split based on the percentage of fault. This means if the victim was 25% responsible for causing the accident, then 25% of their awarded settlement will be subtracted to take account of their actions.
However, if you were responsible for causing the accident in question, then you and your insurance company (if you didn’t get the company’s accident coverage) would be responsible for damages. If you purchased the rental company’s Loss/Damage Waiver, the company typically agrees not to pursue you for repair costs, diminution in value, or “loss of use,” so long as you didn’t violate the contract (for ex. DUI, unauthorized driver, off-road use). It is important to note that this waiver isn’t insurance, but it’s a contractual waiver often used to avoid paying for the rental’s damage.
Does Your Insurance Go Up if You Damage a Rental Car?
If you have been involved in a rental car accident, your insurance can potentially increase, because insurers in California consider at-fault accidents and paid claims when setting renewal premiums. While California’s rate setting is regulated, the surcharges are directly tied to your driving safety record. So if your insurer pays a third-party liability claim because you were at fault, an increased surcharge at renewal is common.
However, if a claim involves only physical damage to the rental and the cause of the accident was from another at-fault party, the impact on your premium may be smaller or none depending on degrees of fault, payout size, and your insurer’s rating plan. If you are curious how a rental car accident can affect your insurance policy, it is recommended to look at your current plan.
What if You Are Uninsured
Driving a rental without your own insurance is risky in California, because you could face personal exposure for injuries and property damage beyond any coverage the rental company provides. If you declined the rental’s optional liability add-on and cause a crash, you may be responsible for all damages out of pocket.
Additionally, California’s Proposition 213 (Civil Code §3333.4) restricts an uninsured driver’s ability to recover non-economic damages (like pain and suffering) after a crash even if the other driver was at fault. Even if the other driver is uninsured and you’re uninsured, you have no UM/UIM to fall back on. With these factors in mind, it is highly recommended to consult with a legal professional as soon as possible so you can protect your rights and explore your options.
Frank Penney Injury Lawyers is Here to Help
Whether you were the driver, a passenger, or struck by someone in a rental car, if you were hurt in a rental-car accident anywhere in California contact Frank Penney Injury Lawyers today. Our firm has over 25 years of experience fighting for our client’s rights and our team of attorneys are confident they can give you the legal assistance that you need. We’ll handle the insurance maze and all legal aspects so you can focus on healing. Call us today at 888-888-0566 or by filling out our online contact form for a free case consultation.