Dealing with a Car Accident Lawsuit Involving a Rental Car

You may be held liable for a car accident lawsuit if you were driving a rental car and violated the rental agency’s agreement. If you were the cause of an accident and were speeding or driving under the influence of alcohol or drugs, your rental car agreement will be void. That means you will be responsible for any damages or injuries resulting from the accident.

Making Sure Insurance Covers You From Liability

Whenever you rent a vehicle from a rental car company, there is usually quite a bit of paperwork to read through and fill out. Most rental agreements have what’s called a “Conditional Damage Waiver”. If you agree to this waiver, then any damage done to the car while it is under your control will be your responsibility. Rental car companies often ask if you wish to purchase additional insurance. Whether you choose to buy coverage from them or use your own auto insurance policy to cover you, it’s important to make sure that you have enough coverage to pay for damages if you end up being involved in an accident.

Choosing the Right Insurance is Crucial

Knowing which insurance you need when renting a car can be difficult to sort through. Here are some options you can choose from:

• Your Own Auto Insurance—If you purchased collision coverage through your own auto insurance policy, this will cover damages caused to any vehicle that you drive. Comprehensive coverage will cover fire, theft, vandalism or a collision with an animal. If you were the cause of the accident, your liability insurance will pay for the damage to the other vehicle, and any expenses for medical treatment that arise due to your negligence.

• Credit Card Companies—There are a variety of credit card companies that offer rental car insurance when you charge the cost of the rental onto your card. If you choose this option, make sure that you get the details of the coverage in writing. Some policies only cover damage to your rental car and doesn’t offer liability coverage for injury or death.

• Insurance From Rental Car Company—Loss damage waivers (LDW) and collision damages waivers (CDW) replace your own collision and comprehensive insurance. When choosing these options, you will be covered if your rental car is stolen, vandalized or damaged in a collision. You may be required to pay a deductible. Purchasing additional liability insurance may cover you up to $1 million in damages when you cause the accident, damage other property, or cause bodily injury to others.

Purchasing the right combination of insurance is critical and may be the difference between being covered or left facing a hefty lawsuit.

Avoiding a Lawsuit

If you become involved in an accident involving a rental car, you need to contact both the rental car company and your own auto insurance company. The rental car agency will have specific policies regarding their accident procedures. If the accident involves serious damage and injuries, make sure the police are called to make a report. Do not admit to fault as this is for the local authorities to determine when they complete their report.

Obtaining Legal Advice

If you have been involved in an accident involving a rented vehicle, you may find yourself facing a car accident lawsuit. You should speak with an experienced accident attorney that may be able to help defend you and minimize your legal liability.