Some car accidents are easy to “unpack.” For instance, if you’ve come to a complete stop at a red light and a car rear-ends you, that driver would clearly be at fault. If you’re driving your lane on the highway and another vehicle crosses into your lane and hits your car, it would also be easy to establish who was at fault.
What happens if you get into an accident while driving a rental car? That is where things can get complicated.
Accidents involving rental cars are more complex because of the specifics of a rental agreement and the potential for multiple layers of insurance. There is also the issue that the person driving the rental car might be an out-of-state visitor, which further complicates the pursuit of a claim.
It is recommended that you speak with an experienced Louisville car accident lawyer after any accident involving a negligent driver.
That’s especially true when a rental car is part of the equation.
Our attorneys at McCoy & Hiestand, PLC, have years of experience helping clients navigate the complexities of establishing liability in car accidents, including those involving rental cars.
Before you pursue a claim, it will help you to know which insurance company you need to file against. We can help you make sense of it all. That begins with the role of insurance in a rental car accident.
What Is the Role of Insurance in a Rental Car Accident?
Understanding the role of insurance in a rental car accident begins with Kentucky’s minimum liability requirements. That law mandates the following for liability coverage:
- $25,000 per person
- $50,000 per accident for bodily injury
- $25,000 for property damage
The purpose of liability insurance is that if you’re the at-fault driver, your insurance will pay for compensation to the other driver. Even if you have a spotless driving record, having liability insurance offers protection.
When you rent a car, the same liability insurance may also extend to the rental car. That’s not automatic. You would need to have that verified in your policy. If your personal auto insurance does not extend to a rental car, then you might opt for the rental car company’s insurance options.
How Does Rental Car Insurance Work?
When you rent a car, the rental car company will offer various insurance options and add-ons.
Those include collision damage waiver (CDW) or loss damage waiver (LDW). With CDW coverage, it waives the rental company’s right to charge you for damages that might occur in an accident.
For example, if you scratch the car, dent the fender, or get into a more serious accident, the CDW acts as your insurance coverage. The loss damage waiver limits your financial responsibility if the rental car is stolen or damaged. Essentially, the rental car company wants you to return the car in the same condition as when you drove it off the lot.
Without those policies, you could be charged for even the most insignificant of damages.
Rental car companies also offer liability coverage that would be similar to your state insurance coverage. That would mean that if you were involved in an accident that was totally or partially your fault, you would be covered.
These options are added to your rental fee, which is why many renters often decline them automatically. That is a risky decision if your personal auto insurance policy does not extend to a rental car. If something happens to the rental car, you will be wholly responsible for compensating the rental car company.
It’s important to note that many credit card companies also offer insurance on rental cars if you use their cards to pay for the rental.
This is another type of secondary insurance that you need to research before signing the rental agreement.
Kentucky’s Comparative Negligence
Another issue to contend with in an accident involving a rental car is Kentucky’s comparative negligence law. That means that if you’re partially at fault in the accident, you’re still entitled to pursue compensation. Your final amount of compensation will be reduced by the percentage of fault assigned to you.
What is important to note is that if you are involved in an accident with a driver who is operating a rental car, you can’t file a claim with the rental car company. That is why they put the waiver policies in their rental agreements.
The only exception would be if the accident were caused by a mechanical failure that the rental car company was responsible for addressing.
How McCoy & Hiestand, PLC Can Help with Your Accident Claim?
If you are involved in an accident with a driver using a rental car, you are still entitled to pursue a claim against them.
Our attorneys at McCoy & Hiestand, PLC, help clients in these scenarios determine who was at fault and who needs to pay for damages. We are also capable of pursuing claims for car renters from out of state.
If the at-fault driver opted for the rental car insurance, we can help file a claim against the rental car insurance carrier.
That company will put up a rigorous defense, which we will be able to take on. If the rental car driver waived the insurance, we’ll focus on their personal insurance carrier. We’re committed to helping our clients maximize the benefits they are entitled to.
Before proceeding with your claim, it is essential to understand all your options. You can learn about these options during your first consultation with McCoy & Hiestand, PLC.
We’re standing by to help.
