What To Do After An Accident In A Rental Car

Renting a car can be an easy solution when traveling or in need of a temporary vehicle. However, accidents can happen at any time, especially in a rental car. The following will help you navigate what to do if you’re in an accident in a rental car, the rights you have as a renter, the insurance provided by the rental car company, and how credit card rental insurance works. Here at KAASS LAW, our goal is to inform our readers and clients to increase awareness. 

Rights and Recourse After an Accident in a Rental Car

If you’re involved in an accident while driving a rental car, the first thing to do is follow the standard procedure for any car accident:

• Safety: You, as a person, need to move to a safer location.
• Contact Authorities: If applicable, call the police if any vehicle or property involved has over $1000 property damages, injuries, or death.
• Exchange information: Gather information from any party regarding the incident. This includes names, contact details, insurance information, and vehicle details.
• Evidence: Picture or record videos of anything related to the scene of the accident. This includes damages to all vehicles and any other relevant details.
• Notify the rental company: As soon as possible, inform the rental company about the accident.

The rental car company may have specific protocols for handling accidents, which could include an investigation into the cause.

Insurance Provided by the Rental Car Company

When renting a car, rental agencies typically offer several types of insurance coverage, but it’s important to note that this coverage is optional unless you purchase it at the time of rental. Here are the most common types of coverage provided by rental car companies:

a. Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW)

A Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) is one of the most common types of rental insurance. It is not technically insurance but rather a waiver that relieves you from financial responsibility.

• What it covers: CDW or LDW typically covers damages to the rental vehicle, including repairs or the cost of replacing the car if it is stolen. It may also cover theft of personal items inside the car.
• What it doesn’t cover: CDW and LDW generally do not cover personal injuries or damage to other vehicles involved in the accident. Additionally, it might not cover accidents caused by reckless driving, driving under the influence, or driving on prohibited roads (e.g., off-road driving).

It’s important to carefully read the rental agreement to understand the scope of the coverage. Some rental companies may offer a “zero-deductible” option for an additional fee, which means you won’t be responsible for any out-of-pocket costs if damage occurs.

b. Supplemental Liability Insurance (SLI)

While CDW covers damage to the rental car, it does not cover any liability for damage or injuries caused to others. Supplemental Liability Insurance (SLI) can be added to your rental contract to protect against third-party claims for bodily injury or property damage caused by you in the accident.

• What it covers: SLI typically provides coverage for bodily injury and property damage to others in the event of an accident.
• What it doesn’t cover: SLI usually does not cover your medical expenses or personal injury.

3. Credit Card Rental Insurance: How It Works

Many major credit cards provide rental car insurance as a benefit when you use the card to pay for your rental. This coverage can often provide additional protection and peace of mind, but it’s important to understand the terms and limitations to avoid confusion in the event of an accident.

a. Types of Coverage Provided

Credit card rental insurance typically includes:

• Collision Damage Waiver (CDW): This covers damage to or theft of the rental car. It usually provides coverage for repairs and replacements if the car is damaged or stolen, similar to the CDW offered by the rental company.
• Supplemental Liability Insurance (SLI): Some credit cards also provide liability coverage for third-party injuries or property damage caused by an accident.

b. Conditions for Coverage

Credit card rental insurance usually comes with certain conditions. These include:

• Payment with the credit card: The rental must be paid for in full using the eligible credit card. Using another payment method may void the coverage.
• Length of rental: Most credit cards only cover rentals for a limited time (typically 30 days or less).
• Geographic limitations: Credit card rental insurance might not cover rentals in certain countries or regions. Always check the card’s terms for specific exclusions.
• Type of vehicle: High-end or luxury cars, trucks, or certain exotic vehicles may be excluded from coverage.
• Exclusions: Credit card insurance might not cover accidents caused by driving under the influence, reckless driving, or driving on unsafe roads.

It’s essential to read your card’s benefits guide and contact your credit card company to understand the specific terms, limitations, and exclusions of the rental insurance offered.

4. Which Credit Cards Offer Rental Car Insurance?

While many major credit cards provide rental car insurance benefits, the coverage can vary significantly by card issuer and type. Some of the best credit cards for rental car insurance coverage include:

a. Chase Sapphire Preferred® Card

• Offers primary rental car insurance coverage for collision damage or theft, which means you don’t need to rely on your personal insurance.
• Provides up to $75,000 in coverage for damage or theft of the rental car.

b. American Express Platinum Card®

• Provides secondary rental car insurance, covering damage to the vehicle and theft.
• AmEx also offers premium protection for high-end rentals.

c. Citi Premier® Card

• Offers primary coverage for car rental collisions and theft up to the cash value of the car.

d. Capital One Venture Rewards Credit Card

• Provides secondary insurance, including coverage for collision damage, theft, and vandalism.

Contact Us

Accidents can happen when you least expect them. However, knowing your rights and the insurance options available to you can help you navigate any future issues. Sometimes these type tragedies may include a bystander being a part of it, and there are steps to take after a pedestrian accident. Here at KAASS LAW, we are quite familiar with these accidents and can help resolve these issues with proper care.