Coverage for Injuries in a Rental Car Accident

If you are involved in an accident with a rental car, your own car insurance policy should cover your injuries, but other coverage may be available as well. Your insurance often pays your medical costs from a car accident whether you were driving your own car or a rental car. The policy usually carries a cap on medical expenses per person, such as $10,000.

If the accident happened in a fault state (a state that has adopted a fault-based system of insurance) and another driver was responsible for the accident, that driver’s insurance may ultimately reimburse you for medical expenses. If the accident occurred in a no-fault state (a state that has adopted a no-fault car insurance system), generally your insurance covers your own injuries; however, consult an auto accident attorney for how the laws of your state apply to your situation. If you bought personal accident insurance (PAI) from the car rental company, it may duplicate some of the medical coverage you already have.

Other types of rental car insurance do not pay for injuries. Collision damage waiver (CDW) covers damage to the rental car. Personal effects coverage (PEC) pays for luggage and other personal items damaged in the car accident. Like the PAI, these other kinds of insurance may duplicate what you already have. Your car insurance probably covers damage to the rental car and your homeowners or renters insurance should cover your personal belongings.

You may want to check your own personal car insurance policy before traveling and jot down the following information if you think you will be renting a vehicle at your destination:

• Deductible
• Property Damage Coverage
• Bodily Injury Coverage
• Coverage for Accidents that Happen Abroad
• Uninsured/Underinsured Motorist Coverage

Knowing this information will help you make an informed decision about whether or not you need rental car insurance.

Related Content:

Fault and No-Fault Car Accidents: Understanding State Liability Laws
Who Pays if You’re in an Accident in a Company Car?
Who Is Responsible When Your Friend Causes an Accident Driving Your Car?
Was the Car Accident Your Fault? Don’t Panic

Case Studies: Coverage for Injuries in a Rental Car Accident

Case Study 1: The Cap on Medical Expenses

Sarah rented a car for her vacation. Unfortunately, she was involved in a car accident caused by another driver. Sarah sustained injuries and required medical treatment. Since she had her own car insurance policy, her medical expenses were covered up to a cap of $10,000. The other driver’s insurance was determined to be at fault, and they eventually reimbursed Sarah for her medical costs.

Case Study 2: No-Fault State Coverage

John, a resident of a no-fault state, rented a car for a business trip. He was involved in an accident where he was not at fault. In a no-fault state, John’s own insurance policy covered his injuries, regardless of who was responsible for the accident. However, to understand the specific laws of his state and ensure he received proper compensation, John consulted an auto accident attorney.

Case Study 3: Personal Accident Insurance

Lisa rented a car and opted for personal accident insurance (PAI) offered by the rental company. Later, she was in a collision that caused injuries. The PAI she purchased duplicated some of the medical coverage she already had through her own insurance. Therefore, Lisa was able to file claims with both her personal insurance and the PAI, resulting in additional compensation for her injuries.

Case Study 4: Coverage for Car Damage and Personal Belongings

Mark rented a car for a road trip. Unfortunately, he got into an accident and the rental car suffered extensive damage. Luckily, Mark’s own car insurance policy covered the damage to the rental car. Additionally, his homeowners’ insurance provided coverage for his personal belongings that were damaged in the accident.