Renting a car can be a viable option for business travelers and tourists when traveling a long way from home. While rental cars make transportation more convenient, accidents involving these cars can mean serious legal consequences for the driver.
In general, rental car companies are not liable for any damages involving their cars. If the driver of the rental car causes an accident, he or she will have to cover any damages including vehicle repair, medical bills, and lost wages. The driver’s car insurance should cover the accident if he or she is deemed to be at fault. Additionally, any tickets that the driver receives will be his or her sole responsibility.
However, rental car companies can be liable in certain situations. One example of when a company could be liable is if the rental car company was negligent in vehicle repairs or maintenance. However, to establish liability, your attorney would need to prove that the overlooked issue contributed to the accident.
Additionally, a car company could be liable if they were negligent to whom they rented out the car. A company that failed to check the background of a driver whose license was suspended could be responsible for damages, for example.
If you decide to rent a car, read the rental contract carefully especially when driving out of state. Different states have varying rules about what insurance you will need. Check for stipulations about liability during accidents. Additionally, check your own car insurance policy to see what is covered when renting a car.
As an added security measure, you might choose to purchase additional coverage from the car insurance company, especially if your personal policy is limited. The rental company may offer personal effects coverage, which can compensate you for your belongings if they are damaged while in the car. Additionally, a collision damage waiver will cover damages to the rental car and other involved vehicles in the event of an accident. Furthermore, personal accident insurance pays for injuries and deaths in an accident. Check your renter’s policy to see if there is a deductible.
Overall, the driver is usually liable for car accident damages and traffic violations, unless the car rental company can be proved negligent. When planning to rent a car, read the rental policy and your insurance policy beforehand to know what to expect in case of an accident. You can reduce your expenses and exposure in the case of an accident by purchasing additional coverage from the car company. If you were in an accident involving a rental car, a personal injury attorney can help represent your case.
Contributors: Nhan H. Nguyen, MD, JD, MSF, Attorney at Law and Stacie Nguyen, Business Honors and Finance Student, The University of Texas at Austin
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