On the Road with Confidence: A Deep Dive into Rental Car Insurance

So you're cruising down the countryside or driving through the city taking in the sights, sounds, and, on occasion, the smells when all of a sudden you're rear-ended by another vehicle, or maybe you've drifted off the main road and crashed the car. Whatever the scenario may be, you've remembered that you are behind the wheel of a rental car and are unsure of what to do next. Well, it's likely that when you rented the car, you've signed up for rental car insurance, which, in most cases, can help you cover some or most of the costs associated with your accident. 

However, depending on what state, rental company, and/or coverage you selected, the policies may vary. While it may all seem overly complicated to understand what your rental car insurance does or does not cover, at Morgan & Morgan, we've made it our mission to help you better understand what your rental car insurance policy can do for you and your loved ones in the case you've been involved or injured due to a rental car accident. 

Why Car Rental Insurance Helps Keep You Safe

Many drivers on the road think they are the safest driver in the world or tend to think, "This could never happen to me," yet according to the Bureau of Labor Statistics, in the United States, a car accident occurs every 13 minutes. In 2021, the NHTSA reported a total of 42,939 people died in motor vehicle crashes in 2021–which is roughly a 16% increase as compared to previous years. So, when you take a second to look at the facts, it's simple to understand that while we may take all the precautions in the world, things happen. 

However, when things happen, in this case, a rental car accident, it's always crucial not only to have insurance but also to ensure you're fully aware of what your insurance policy can do for you to help protect you should you suffer an injury or otherwise. Below, we've broken down some of the most common forms of rental car insurance, what they do, and which ones may be the best option for you to choose before you leave the lot.

Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW): CDW or LDW is also known as the Physical Damage Waiver, which provides drivers with coverage for the cost of repairing or replacing a rental car if it is damaged or stolen while in their possession. The waiver's cost will depend on various factors, including the rental car type and where the vehicle is being driven.

Liability insurance: Liability insurance allows you, the driver, to be protected in the case you cause an accident while driving the rental car and someone is injured or their property is damaged.

Personal effects coverage: if you are traveling with expensive items in your rental car, this policy allows you to be reimbursed by the rental company in the case you suffer loss in the form of your personal items due to an accident, stolen vehicle, or otherwise. 

Personal injury insurance: Allows you to have your, or those covered under your insurance, medical expenses covered in the case you or the passengers are injured in an accident while driving the rental car.

If you are still unsure which insurance option works best for your rental car, make sure you are communicating with your rental car insurance representative. Ask them questions about what each policy has to offer and if they have an opinion on which one best serves your needs.

What Happens If a Rental Car Hits You?

In some cases, you may not be behind the wheel of a rental car when the accident happens. If you've been involved in an accident where the other driver was in a rental car, here is everything you need to know in order to help protect yourself. First, make sure that you, or anyone else in your car or in your party, has or has not suffered from any injuries. If you are in a vehicle, leave the vehicle and head to safety, which may be on the side of the road or the nearest sidewalk. 

Next, call 911 and inform your local law enforcement that there has been an accident. If you are able, collect as much evidence of the accident as possible; this means taking photos and videos of the scene and collecting witness statements. Note down the license plate of the other vehicle; then, if your vehicle was involved in the accident, contact your insurance company to report the incident. Once your insurance company is involved, typically, they'll take over and handle the distribution of damages. 

However, in the specific case where you do not have a vehicle and the rental car has hit you alone, things can get a little more complicated. When you, the pedestrian, are hit or injured by a rental car, your first instinct may be to go after the rental car company. The only issue with that idea is the Graves Amendment, which protects the rental car companies from any liability claims made against them. In that case, we highly recommend you seek to recover damages through the driver's auto insurance company or other legal options. 

If you choose to follow the legal route and hire an attorney, you may be able to hold the rental car company or the driver responsible if they have:

• Failed to maintain the vehicle that caused the accident properly;
• The driver allowed someone who was not qualified to drive the rental car.
• Failed to properly inspect and maintain equipment, such as brakes or tires, leading to the accident.

For more information on how you may be eligible to recover compensation for your injuries, connect with a Morgan & Morgan & Morgan rental car accident attorney today.