What Happens If You Crash a Rental Car?
Accidents cannot be predicted. Therefore, it is possible that you crash a rental car. Since accidents are not anticipated, you can definitely know what should be done if something like this happens.
In general, when rentals meet an accident, it is the renter's job to pay for the damages and other expenses. However, with insurance for a rented car, one can shift the liabilities.
What Happens If You Wreck a Rental Car?
When a rental car meets with an accident, there are two types of liabilities that one should learn about. It is associated with the personal and the car rental company’s liabilities.
1. Personal Liability
When accidents happen due to the fault of the renter, the auto insurance or rental car insurance will be the first line of defence.
Some insurance policies provide coverage for rental car accidents and damages.
In regions like Florida, Personal Injury Protection insurance will cover the damage and medical expenses.
When there is no insurance coverage, the renter may need to pay for the expenses related to accidental damage.
2. Liability of Rental Car Company
As per the Graves Amendment, rental car service providers are not liable for anything caused by the crash or accidents.
However, the company can only be held responsible if there is solid evidence of criminal wrongdoing or negligence.
Besides, the company is not vicariously accountable for accidents occurring due to the renter’s specific actions or mistakes.
Note: Go through the accidental coverage and other crucial aspects to get compensated for unforeseen events.
What Happens If You Crash a Rental Car Without Insurance?
Before renting a car, knowing what happens if you crash a rental car with insurance and without it is paramount. There are mainly three types of coverage options available that one can explore.
1. Personal Auto Insurance Coverage
Some car insurance plans can also be extended to rental cars. This generally includes several aspects, including:
PIP coverage
Collision
Liability
However, to get these coverages, one must validate their existing auto insurance policy to see if it has extended benefits for the rental car’s accidents.
2. Insurance for Rental Cars
When a renter does not have any auto insurance with extended benefits, they can consider a separate policy for this. By getting supplemental insurance coverage, one can have the following coverage:
Liability Insurance: It covers bodily injuries and property damage caused by a rental car’s crash. Some options can also add the expenses associated with roadside assistance.
Collision Damage Waiver: This covers the expenses if the rental car is stolen or damaged. Without this, rental car companies can charge extra for towing, damage, and dents.
Personal Accident Insurance: It is an adequate option for covering medical bills of a renter or others who were injured during an accident. This option also covers dismemberment, medical expenses, ambulance expenses, and even accidental deaths.
3. Coverage through Credit Cards
Some companies, such as American Express, MasterCard, and VISA provide complimentary or limited insurance benefits on the credit cards. This is available if the payment for the rental cars is paid through it. Along with this, it provides several benefits to those who are looking for details regarding what happens if you wreck a rental car:
Coverage for accidental damage
Compensation if the car is stolen
Please remember that personal injuries or liability are not covered within the credit card coverage. However, it is necessary to review the specific terms and conditions before solely counting on the coverage offered.
What to do After the Accident or Crash of a Rental Car?
If a rental car is involved in a crash or meets with an accident, taking certain steps will help in effectively managing the situation and mitigating the complications.
Ensure Safety: The very first thing to do is to check for injuries among the people involved. Prioritize instant medical help by calling the police and emergency services.
Document the Incident: If possible, capture the videos and photographs of the vehicles involved, road conditions, and visible damage. This electronic evidence will help in legal procedures and insurance claims.
Collect and Exchange Information: Collect the necessary contact details, insurance-related information, and vehicle registrations from the drivers involved. Furthermore, collect details of the witness, if any.
Inform the Local Police: Right after the accident, call the local police and report the accident. This is a mandatory step that will help in legal procedures, insurance claims, and others.
Contact the Car Rental Company: Call the car rental company in Chicago or other places and explain the situation. Some service providers offer additional services such as replacement of the vehicle, towing, etc.
Notify the Insurance Company: Reporting the insurance company about the accident or crash is necessary. The insurance company executive will guide and help with claim settlements.
What Happens If Car is Crashed But it is Not Renter/Driver Fault?
When it comes to what happens if you wreck a rental car without your mistake, you will need to handle this situation with smartness and care.
Make sure everyone is safe.
Call the local police and emergency services.
Record the statements of witnesses.
Exchange the necessary information with the people involved.
Inform the car rental and insurance companies about the crash.
Document everything to get compensation from the person who was at fault.
Follow all legal procedures to make the claim process seamless.
Why is it mandatory to have Insurance Coverage for the Rental Car?
Renting a vehicle comes with many responsibilities. In addition to this, it is hard to anticipate unforeseen events or circumstances. Therefore, it is better to stay prepared for such scenarios, and insurance is the best safety net one can have.
It provides financial protection against accidental damage.
Insurance is the best way to cover the losses that occur when the car is stolen.
Most insurance plans cover the cost of repairs and replacement of spare parts.
Rental car insurance plans often include liability protection caused by accidents and others.
With a separate insurance policy for a rental car, one can avoid the hassles involved in the claim settlement of personal auto insurance.
Remember: Buying insurance for a rental car may see an extra upfront cost, but it is more like a strategic decision to keep exorbitant expenses at bay.
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Conclusion
Accidents or other unforeseen events can happen to anyone. However, renting cars without having an insurance plan can increase the chances of legal issues and considerable financial losses. Keep in mind that wrecking a rented car without a valid insurance policy can result in repercussions that can go beyond the simple repairs of damage. So, explore the relevant options and go through the policies to know what happens if you crash a rental car in detail.
