How Does Insurance Work When Getting in an Accident With a Rental Car


How Does Insurance Work When Getting in an Accident With a Rental Car

Whether a driver has been in an accident with their own automobile or a rental, the procedure of making a claim is almost identical. In fact, the biggest difference comes from what they must do after the accident. This depends on whether they are covered by their own car insurance, the rental company, or their credit card company.


5 Steps to take if you have Crashed a Rental Car

The first thing any driver should do after an accident is to check themselves and their passengers for injuries. Once everyone’s safety has been ensured, drivers should gather the following information to make a claim:


  1. Exchange personal information with the other drivers
  2. Document the accidents with notes and pictures
  3. Contact the rental company
  4. Notify their insurance company about the accident
  5. Make an insurance claim with your insurance company


Who Will Cover the Damage to the Rental Car?

Depending on the circumstances of the crash and the coverage they have, drivers may have to file a claim with one of the following 4 company types:

  • Personal insurance company
  • The car rental insurance company
  • Their credit card issuer via credit card rental insurance
  • The other driver’s insurance company

Personal Insurance Company-

If the driver is responsible for the accident, they can use their liability coverage to cover the costs of the crash they have caused. Some policies also allow drivers to pay for repairing or replacing damaged rentals.


The Car Rental Insurance Company-

When people buy rental car insurance, they purchase add-ons that are added to the minimum amount of liability coverage offered by the car rental company. There are four main types of add-ons that drivers can choose from:

  • Supplemental liability protection (SLP)
  • Loss damage waiver (LDW)
  • Personal accident insurance
  • Personal effects coverage

Depending on the type of purchased add-ons, rental car insurance can cover the damage to the other vehicle and the rental.


Credit Card Rental Insurance-

Credit card issuers are known to offer cardholders rental car coverage at no additional cost. When a rental is paid with a certain type of credit card, they automatically get insured for different types of collisions. Some cards also include a loss damage waiver.


The Other Driver’s Insurance Company-

If the other driver is responsible for the crash, their insurance provider needs to be contacted so that a claim can be made for reimbursement for the damaged rental car.


Do Premiums Go Up Because of Rental Car Accidents?

Insurance premiums do go up when drivers are involved in any type of accident, including crashes involving rentals and regardless of whether they have extra coverage from their credit card or the rental agency.


What Happens if a Rental Is Damaged and the Driver Doesn’t Have Insurance?

All rental cars come with enough liability coverage to ensure that they are legally allowed to drive. This means that drivers will always have some form of partial insurance when driving rentals. But once the limit of the coverage is reached, all subsequential expenses will be paid by the driver out of pocket.


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