I Crashed a Rental Car. Am I Covered?

If you crash a rental car, you may assume you have insurance coverage to cover the damages, but this is not always the case. Whether you are covered depends on what insurance you have and how the rental was paid for. There is no one-size-fits-all answer, and many drivers are surprised to learn that coverage gaps are common. Here are some types of rental car coverage that may apply to you.

Your Personal Auto Insurance

In many cases, your personal car insurance extends to rental cars. Liability coverage usually follows you, meaning it can pay for injuries or property damage you cause to others. If you carry collision and comprehensive coverage on your own vehicle, that coverage often applies to the rental as well. However, you are still responsible for your deductible, and it is possible that a claim may affect your future premiums.

Rental Car Company Coverage

Rental companies typically offer a collision damage waiver or loss damage waiver. Despite the name, this is not insurance. Instead, it is an agreement that limits or eliminates your financial responsibility for damage or theft of the rental car. If you decline this option and cause damage, the rental company may pursue you for repair costs, loss of use, towing, and administrative fees.

Credit Card Coverage

Many major credit cards provide secondary rental car coverage if you pay for the rental with the card and decline the rental company’s collision damage waiver. Secondary coverage means the card pays after your personal insurance, often covering deductibles or remaining costs. Some premium cards offer primary coverage, but exclusions are common, especially for luxury vehicles, long-term rentals, or international rentals.

What May Not Be Covered

Even with coverage, certain costs may not be fully paid, including diminished value, loss-of-use charges, or violations of the rental agreement (such as unauthorized drivers or driving under the influence). If you caused injuries to others and only carry minimum liability limits, you could still face out-of-pocket exposure.

Be Prepared

Planning for a rental car accident may not be exciting, but having a strategy in place before you leave can save you significant stress and expense. Start by checking whether your credit card offers rental car coverage. Some cards provide secondary coverage, and higher-tier cards may offer primary coverage if you use the card to pay for the rental. Even cards with annual fees can be cost-effective if they help you avoid expensive out-of-pocket costs after an accident.

You may also want to explore purchasing rental car insurance independently. If your personal auto policy does not extend to rentals and you prefer not to buy coverage from the rental company, third-party insurers offer short-term rental coverage that can fill the gap.

Contact a Personal Injury Lawyer 

Dealing with auto insurance may not be fun, but having the right amount of coverage can give you peace of mind,

In a crash? Have questions about insurance coverage. See how a Houston auto accident attorney from The West Law Office, PLLC can protect your legal rights and help you get the compensation you deserve for your injuries. Schedule a consultation today by calling (281) 347-3247 or filling out the online form.

Source:

nerdwallet.com/travel/learn/what-to-do-if-you-have-an-accident-in-a-rental-car