How Is Liability Determined in a Rental Car Accident?

Renting a car, whether for business, travel, or leisure, often seems straightforward until an unexpected accident occurs. In these situations, determining who is at fault and liable for damages and injuries can become a complex matter.

California is a fault accident state, which means that the person responsible for the accident is also responsible for the damages. However, when a rental car is involved, the process of determining liability involves several layers and multiple types of insurance coverage.

Different Types of Rental Car Insurance in California

When you rent a vehicle, the rental company may offer you the option of purchasing different types of rental car insurance. While this insurance is optional, it is highly recommended that you purchase coverage before your trip in case of an unexpected accident.

These policies may include:

• Loss Damage Waiver (LDW): This waiver is not technically insurance, but it releases you from financial responsibility if the rental car is damaged or stolen. It may also cover loss of use charges while the car is being repaired, towing charges, and related fees.  circumstances, such as reckless driving.
• Liability Insurance Coverage: This coverage protects you in the event you cause bodily injury to others or damage to their property while driving the rental car. Most rental companies offer a basic level of liability insurance, but the coverage limits may be lower than what your personal insurance provides.
• Personal Accident Insurance: This insurance covers medical costs for you and your passengers in the event of an accident. It’s particularly useful if you don’t have health insurance or if your health insurance doesn’t cover auto accidents.
• Personal Effects Coverage: This covers the theft of personal items from the rental car. If you travel with valuable items, this coverage can provide peace of mind.

Each of these options has its specificities and may or may not duplicate the coverage you already have under your personal car insurance policy. It is important to review the details of each policy carefully so that you can fully understand your responsibilities and coverage.

Who Is Financially Responsible for a Rental Car Accident?

If you are involved in a rental car accident, the insurance coverage that you purchased will likely cover some of the costs. If you do not have this coverage or if it does not pay for the entirety of the costs, you may be responsible for paying for the damage through your own personal insurance policy. Many policies cover accidents involving a rental car, though there are exceptions, particularly with rentals for business purposes.

If the accident was caused by another party, their insurance is typically expected to cover the damages. However, you might face initial financial responsibilities until the claims are settled. 

What to Do If You Crash a Rental Car

After being involved in a rental car accident, it is important to remain calm and call 911 to report the collision. Next, seek immediate medical care to address any potential injuries. It’s also important to gather evidence at the scene of the accident; take photos of the vehicles, the surrounding area, and any relevant road signs or signals. 

Following this, contact the rental car company to inform them of the incident. They will provide instructions on how to proceed with the vehicle. Then, contact a San Francisco car accident lawyer to discuss your options. An attorney can help you determine who is liable for the collision and take your first steps toward financial recovery.