How to Deal with a Car Accident Involving a Rental Vehicle

According to statistics, accidents involving rental cars are quite common, especially in tourist areas and major cities. And it is important to know that if you are involved in an accident with a rental car, quick and proper action is required. However, in a panic, drivers often make mistakes that can lead to serious financial and legal consequences. 

Let's take a look at the most common mistakes

• Failure to notify the rental company of the accident. Even if the accident seems minor, the rental company should be aware of the incident. Failure to report it in a timely manner can result in additional fines and difficulty in covering damages.
• Neglecting to document the accident. Insufficient photos, missing witness statements, or an unreported traffic police report can complicate further proceedings and make it difficult to obtain insurance.
• Relying on personal insurance to cover the damage. You should know that the terms of insurance policies vary, and without additional insurance from the rental company, you can be left with serious financial obligations.

In addition, you should never leave the scene of an accident without calling the police, especially if there are casualties or significant damage. In some jurisdictions, this can lead not only to fines but also criminal liability.

Step 1: Ensure Safety and Contact Authorities

First and foremost, the safety of everyone involved in the accident must be taken care of and the incident must be properly documented to avoid further legal and financial complications.

What should I do immediately after the accident?

• Check for injuries. Make sure you and others involved in the accident are not seriously injured. If there are any injuries, call an ambulance immediately.
• Move the vehicle to a safe place. If the accident occurred on a busy road and the vehicle can be moved safely, try to move it off the roadway to avoid more collisions.
• Turn on your emergency lights and display an emergency stop sign. This will alert other drivers to the accident and help prevent additional incidents.
• Call the police. Even if the damage seems minor, having an official police report will help you avoid disputes with the rental company and insurance organizations.

Why is official police report important?

The police report is the main document that records the circumstances of the accident. It includes diagrams of the accident, witness statements, details of the parties involved, and the inspector's report. Without this report, the rental or insurance company may hold you fully liable for damages, even if the accident was not your fault.

When you receive the police report, make sure it includes all the important details and keep a copy for future reference.

Step 2: Notify the Rental Car Company Immediately

Once you have made sure it is safe and have contacted the police - immediately report the accident to the company you rented the car from. Many renters underestimate the importance of this action, but delaying or withholding information can lead to serious consequences.

Why is it important to notify the rental company right away?

• Rental cars are usually insured, but insurance terms may vary. The rental company will explain the next steps, tell you what documents you need to submit, and give you instructions on how to return the damaged car or replace it with another.
• Some companies require that notification of the accident be made within a few hours of the accident. Failure to report in a timely manner may result in additional penalties or denial of insurance coverage for the damage.

What data do I need to provide?

When contacting the rental company, be prepared to provide:

• The exact location and time of the accident.
• A description of the accident.
• Photos and videos of the damage.
• Contact information for other parties involved in the accident and witnesses.
• Insurance policy number (if there is additional insurance on the rental car).
• A copy of the police report or case number.

Example of a standard telephone message to the rental company

“Hello, I rented a car from your company and unfortunately had an accident. The accident occurred on [date] at [time] at [location of accident]. The accident involved [number of cars], [description of damage] has damage. I called the police; the report will be available under [case number]. I also have photos of the damage and contact details of the other parties involved. Can you tell me what further steps I need to take?”

This notification will help you avoid unnecessary fines and simplify the process of dealing with the rental company and insurance.

Step 3: Understanding Rental Vehicle Insurance Coverage

When renting a car, it is important to know in advance what types of insurance may cover damages in the event of an accident. Depending on the specific situation, protection may come from the rental company itself, your credit card, or your personal auto insurance. However, each option has its own limitations, and if you don't take them into account, you could face unexpected costs.

Rental Car Insurance Coverage Comparison 

Where can pitfalls arise?

• Even if you have taken out insurance with the rental company, they may require you to pay a certain amount before they will cover the damage. Also, CDW doesn't protect against auto theft, tire damage, or glass damage.
• Insurance through a credit card is often only valid if you pay for the rental with that card. It also usually doesn't cover the rental company's administrative fees.
• Your personal auto insurance may not apply to rentals in other countries or may require additional documentation.
• If you do not have Third-Party Liability Insurance, you will have to cover damages to other parties involved in the accident out of your own pocket.

Before renting a car, carefully review the terms of your insurance to avoid unexpected costs in the event of an accident.

Step 4: Filing a Rental Car Accident Claim

After all the basic steps of documenting the accident have been completed, the next step is to file an insurance claim. It is necessary to follow all formalities clearly and carefully, because incorrect actions can lead to the refusal of insurance payments.

What is the correct way to file an insurance claim?

Collect the necessary documents

 To file a claim, you will need the following materials:

• police report of the accident;
• photos of the damage to the rental car and other cars, if they were involved in the accident;
• contact information for those involved in the accident and witnesses;
• rental documents (car rental agreement, insurance, receipts);
• insurance policy number, if you have taken out additional insurance through the rental company or your personal car insurance.

Contact your insurance company or rental company. 

• Depending on the type of insurance (through the company or through a credit card), you will need to send all the collected documents to the appropriate insurer. You can apply online or over the phone.

Fill out the insurance application

• Make sure you fill out all the fields correctly and don't forget to include important details about the accident.

What mistakes can cause an insurance company to deny payment?

• Failure to report the accident within the prescribed time limits. Depending on the terms of the contract - immediately after the accident or within a few hours.
• Failure to file a police report. Even if the accident seems minor, be sure to call the police and get a report.
• Incorrectly filling out the application or missing documents. If you forgot to attach important documents like photos, contact information of witnesses, or policy number.
• Breach of insurance terms. If you have violated the terms of your lease (driving under the influence of alcohol or transferring the vehicle to another person without authorization).
• Lack of or inadequate insurance coverage. Some policies may not cover certain types of damage - tire or glass damage, car theft, or personal liability.

To avoid denials and unpleasant situations, follow the instructions carefully, check all documents carefully, and meet the notice deadlines.

Step 5: What Happens If You’re at Fault?

If you are found at fault in an accident involving a rental car, the consequences can be serious, both financially and legally. It is important to understand the costs you will face and how you can avoid unexpected car repair bills.

How can you avoid unexpected repair bills?

Check insurance terms and conditions 

• It is important to find out in advance what is included in your policy (such as CDW or supplemental insurance from the rental company), and make sure it covers any damages that may be attributable to your fault in the accident.

Using personal insurance

• If your personal auto insurance covers damage caused in a rental car, it can help you avoid high repair costs. However, it's important to make sure in advance that your personal insurance includes rental cars and is valid at the location of the accident.

Rental company and deductible 

• Even if you have insurance through a rental company, you may have to pay a deductible - the amount you are required to cover out of your own pocket before the insurance company will pick up any further costs. Check the deductible and try to choose a policy with a low or no deductible if possible.

Damage Documentation 

• Without clear documentation of the extent of the damage, complete and clear evidence that the damage is less than the rental company claims, you will be billed for the full amount of repairs.

Contacting an expert

• If the rental company claims high repair costs, don't be in a hurry to immediately agree to the amount. In such cases, it may be helpful to contact an independent expert to estimate the cost of repairs.

Third party liability insurance

• If you are found at fault, third-party liability insurance may cover damages to other parties involved in the accident, but not to the rental car. It is important to have a complete picture of what your insurance covers and what you will have to pay out of pocket.

Understanding the nuances of the law can help you reduce your risks and avoid unexpected costs associated with repairing your rental car if you are at fault in an accident.

Seeking Legal Help for a Rental Car Accident Lawsuit

If you are involved in an accident with a rental car and the situation is questionable, or the consequences become complicated, the smart move is to seek legal help. An experienced attorney can protect your interests and minimize the consequences.

In what cases should I contact a lawyer?

• If the accident involves unclear or disputed circumstances - when it is difficult to determine who was at fault, or if there are contradictions in the testimony of witnesses. 
• When the insurance company refuses to cover the damage or bills unreasonably high. 
• If other people were injured in the accident or someone else's car was damaged, and you are found liable, you could face liability for medical expenses, property damage, and even a lawsuit. 
• If your car was stolen or damaged in an accident, and your actions were not in accordance with the terms of your rental policy - you did not keep your car safe. 
• If your policy does not cover all possible damages or there is doubt that the insurance company correctly assessed the situation. 

How can an attorney help reduce liability and get a fair settlement?

• Protect your rights. An attorney can help prove your innocence or minimize the extent of your liability, especially if you are not the sole party responsible for the accident. 
• Will conduct competent negotiations with the rental and insurance company, which will significantly accelerate the settlement process and reduce financial losses.
• Will advise on legal issues - will explain all the nuances of the rental agreement and insurance policy options and offer options for solving the problem.
• Prepare and file a lawsuit in court. 
• Will represent you in the legal process, helping you to get a fair resolution.

Contacting a lawyer can greatly simplify the process of resolving a rental car situation, especially if the incident is accompanied by legal or financial complexities.

FAQ: Common Questions About Rental Car Accidents

Who pays for the damages if I crash a rental car?

• It depends on the insurance. If you have CDW, the rental company will cover most of the costs. If not, you or your personal insurance will pay.

Can I be sued after an accident in a rental vehicle?

• Yes, if other people are injured in the accident, they can sue, especially if you don't have sufficient liability coverage.

What if I didn’t take insurance from the rental company?

• Check your personal auto insurance and credit card - they probably include rental coverage.

Our Help from YMPK Law Group

If you have been involved in an accident with a rental car, YMPK Law Group is ready to provide professional legal support to minimize the consequences and protect your interests. Our team has many years of experience in resolving insurance disputes, litigation and protecting clients' rights. We know the ins and outs of working with rental and insurance companies, and we are ready to help you deal with the most complex situations, whether it is a dispute over payments or defense against unreasonable claims.

Regardless of the complexity of your case, we will provide you with competent legal assistance at every stage of the process. We'll help you avoid mistakes that could lead to financial loss and fight for a fair settlement.

Don't risk your rights and money - contact us, and we will provide you with a reliable defense!