
What Happens if you Crash a Rental Car Without Insurance?
When renting a car, the rental companies offer car rental insurance services. While many think it is wise to buy this insurance, the rest deem it to be a waste of money. If you are also facing a dilemma, the best way to get out of it is to find out what happens if you crash a rental car without insurance.
However, why so? Well, car rental insurance protects you in case you incur liabilities by being in a rental car accident. So, knowing what happens if you get into a rental car accident without rental car insurance will enable you to decide whether or not to buy rental car insurance the next time you rent a car.
What If You Crash a Rental Car Without Insurance?
Generally, when you rent a car, a rental car company provides you with a temporary insurance plan. As this offer is out of budget for many people, they just hope that nothing gets wrong and do not opt for this option. Another question you may have is whether your auto insurance covers a rental.
Keep in mind that if you are trying to save some money by not opting for the insurance, it may badly affect you in the long run. For instance, if you crash a rental car without insurance, you have to be ready for future consequences.
Things You Have to Do If You Get in a Rental Car Accident
What should I do if I find myself in a rental car accident? Well, the question is one of the common questions asked over the web. Whether you have insurance or not, these few tips may be helpful for you in case of a rental car accident.
Is Anyone Injured In An Accident?
First, you have to check if there is anyone who is injured in an accident. If anyone is injured, immediately call 911. It should be the first thing you must do whether or not you have auto insurance.
Do You Need To Report The Police?
Reporting the police about the rental car accident is one of the essential things to do. The report can be your powerful asset if you want to file any claim with your insurance company. The police will go through all the facts about where the accident happened and find who was at fault. Make sure that you ask for a copy after the police officer has filed the report.
Inform Everyone Who Was Involved
Until the police arrive at the location, they exchange the contact and insurance information with everyone who was involved at that time. Exchange the information from one another and, if possible, collect the information from any witnesses.
Click Pictures And Collect All The Evidence
Ensure that you have collected everything. Click pictures of the damaged rental car and the accident's location. If there are scratches, take pictures and mention them. Make sure nothing is left, and click every small detail that may affect you in the future.
Contact The Car Rental Company
Now, contact the rental car company to inform them about the incident. Also, you should have an emergency number from the rental company. Ask them what you have to do if the car is drivable, and if not, ask them to get it towed.
Ensure to note the name of the person you talked to and the date and time for your records.
Contact Your Insurance Company
Suppose you do not have insurance from the rental car company. Now you have to contact your personal auto insurance as soon as possible. Do not be late in claiming the insurance. It is important to look at your insurance policy to ensure it covers a rental car before you pass on the insurance offer.
What Happens When The Car Crash Was Not Your Fault?
You still have to inform the rental company if you didn't cause the car crash and it wasn't your fault. They may file a claim or ask you to file a claim with a third-party insurance company. It is generally known as a third-party claim. If the rental car company tells you to pay for any damages after all this, then you may need to involve your lawyer.
Coverage Options You Have For A Rental Car Crash
When you get a rental car, it is your responsibility if any loss or damage happens to the vehicle. Moreover, if you are not responsible for the damage, you will still be liable till the rental period is not over. But, if you have any coverage plan, it can help you with the damage.
Below are some of the coverage options you can purchase when you rent a car:
Personal Auto Insurance
If you have your personal auto insurance plan, you can use it as rental car coverage. Mostly, your auto insurance is similar to rental car company insurance.
Before renting a car, check your auto insurance to see if it covers rental car crashes. If not, then be smart and buy additional insurance through your rental company.
Coverage Of Rental Car Company
Usually, the car rental company offers you an additional coverage plan when you book a rental car. However, insurance is optional and depends on whether you want to purchase it.
Below are the four types of coverage options that a rental car company offers:
Loss Damage Waiver (LDW)
Loss Damage Waiver protects you when the rental car is damaged or stolen. The car rental company will be liable to cover any replacement or repair costs. Usually, a loss damage waiver doesn't cover damage caused due to unauthorized drivers or reckless driving.
Also Read: What Happens If A Rental Car Is Stolen: Get The Answer
Personal Accident Insurance
Personal accident cover provides coverage to the injured driver or the passengers at the time of an accident.
Supplemental Liability Coverage
Supplemental liability coverage pays for the medical cost and damage to the property if another driver causes the accident.
Personal Effects Coverage
This insurance covers any damage or personal property that you have in the rental car. Oftentimes, you can purchase this insurance from the homeowners or renters insurance.
Credit Card Rental Insurance
Often, you get rental car insurance from a credit card. If you use a credit card, you might get this insurance. There are chances that the credit card provider may pay the coverage for the damage while you have the car.
There is less chance that a credit covers liability coverage. You have to ensure whether the credit card covers the rental coverage or not.
What Does Auto Personal Car Coverage Cover?
Having auto personal car coverage is the first option to get protection for the rented car. Make sure that you never drive a vehicle without insurance. It provides liability coverage for damages you may cause to another person in an accident. If you don't own a car and don't have car insurance. In that case, you should purchase an insurance company's annual or temporary insurance coverage.
If you want to protect your rental car, your auto personal coverage should have collision insurance. It covers the damage to your car that happens in an accident with another vehicle, rollover, or object). Another one is comprehensive coverage( it covers those damages that are caused by causes that are not related to collision). These can be floods, theft, fallen branches to trees, etc. Third is the Collision Damage Waiver, a type of additional coverage offered to the renters.
From these coverages, if you have one, then call one of the representatives of your insurance provider and ask for all the details of your policy.
Is There Any Coverage For Third-Party Drivers Under Collision Damage?
Rental Car companies provide a variety of options to secure a rental vehicle. There is one insurance that is essential to take, and the other ones are optional. It depends on for which purpose you rent the car, how much you can spend and more!
CDW And LDW
Collision Damage Waiver, or Loss Damage Waiver coverage, covers damages like accidents or thefts during the rental period. You can get these coverages with and without a franchise. Insurance companies providing coverage with franchises are responsible for covering a specific amount. However, insurance without a franchise is the responsibility of the insurer to cover all the damages.
Are you wondering about what CDW coverage does not cover? And what LDW coverage does not cover? CDW and LDW do not cover third-party damages.
It is essential to understand that insurers' coverage is invalidated in situations where the renter has shown carelessness in handling the rental car. These situations can be driving under the influence of alcohol, loading the wrong fuel, etc.
The average cost of additional insurance is $27-$30/day when the coverage is directly purchased from the rental car company counter.
Who Is Responsible For The Damage In A Rental Car?
When you are driving a rental car and cause an accident, you are legally accountable for that. But, if you possess coverage, your insurance provider should cover the damages. That is why it is essential to know all the coverage options available.
Unless you have violated your rental car coverage, the rental insurance company will cover the damages caused by an accident. But, coverage may get affected by an area, and you may be responsible for the damage. If you do not have rental coverage, then your personal auto insurance coverage must cover the cost.
Can A Car Rental Company Be Responsible To Pay For The Damage?
Even though most rental cars come with coverage without a franchise and will provide you security in different situations, there can be some possibilities that you may run out of coverage. For example, after an accident, if it is proven that you were driving the car under some prohibited substances like alcohol or drugs. In that case, no insurance will cover the damages, and the renter must pay.
There are some other damages that insurance will not cover, such as filling the car's tank with the wrong fuel, you have lost the keys, and more. In general, all these things are obvious negligence. Suppose the rental car company proves to be guilty of renting a vehicle with mechanical problems. The car rental company should be held accountable for the damage.
Do You Need A Lawyer To File A Claim After The Accident?
After you have experienced an accident in a rental car(and suffering from back pain, broken bones, or some internal injuries), the compensation will be put on hold unless the damage amount is not identified. Usually, the rental car company is answerable between 30 to 60 days, even though it could be less.
If the claim does not pass, you have the insurance by a third party(your credit card, personal policy, or other outside car insurer). Remember, usually, this insurance does not work like other policies. At first, you will have to pay whatever the amount is, and then you ask for the claim.
When you get into an accident and do not have car rental insurance, you must seek help from a Lawyer. Get an experienced lawyer who can help in rental car accidents. If you have a personal injury lawyer, they can help you know whether you will get any compensation.
Conclusion
Car Insurance is important as it covers any cost of rental car damage from a crash. If someone crashes a rental car, they will be responsible for covering the damage costs. Damages can be expensive sometimes, and they can be difficult to deal with. Insurance makes it easier to deal with these types of situations.
Rental Car Coverage is always a reliable option to get out of a difficult situation. Before renting a car, always research and know the available insurance options.