Picture this. You have booked your dream vacation in the USA and are ready to embark on a trip of your lifetime. You diligently booked your flights and hotels, and since you heard how heavily reliant the US infrastructure is on the availability of a car, you booked a rental car. As you exit the plane, pick up your rental car, and start driving towards your first destination on your elaborate plan you are filled with excitement about what is to come. As you gaze out of your car window and then it happens. You are involved in a serious accident.
The car is clearly damaged and while the occupants of the other vehicle are not in any critical condition/do not have any life-threatening injuries they are seeking medical attention. You are overcome with fear and stress. You have heard all the stories of people suing in the US for the most ridiculous things and receiving enormous court judgments or settlement sums. You also heard how expensive medical care in the US is and how a single ambulance ride can cost over $10,000. Now you are worried about being liable for the accident. Does that mean you will have to pay for all the costs associated with the crash? If the occupants sue for damages/injuries are you the person that has to respond to that/be in the stance/go to court and defend yourself?
This scenario is hardly a far-fetched fantasy but rather very common. There are over 2 million car accidents in the US every year. The US Centers for Disease Control and Prevention (CDC) further reports that the United States has higher rates of motor vehicle crash deaths than most other high-income countries and is far behind these other countries in saving lives on the roads.
Urban Thier & Federer, P.A. has assisted 100s of foreign nationals navigate the complex landscape of American law, ensuring their needs are being met. If you or someone you know has been involved in a rental car accident, call us today so we can provide you with adequate support, regardless of whether you are the at fault driver or a victim of another’s negligence.
What Are The Initial Steps After The Accident?
- Ensure Safety and Call for Help: The first step following a rental car accident is to prioritize everyone’s safety. Check for injuries among all parties involved and dial 911 if needed to request emergency assistance.
- Exchange Contact Information: Once the safety of all parties involved is confirmed, exchange information with the other driver(s) involved in the accident. Obtain their names, phone numbers, and insurance details to facilitate the claims process.
- Report the Incident: It’s crucial to report the rental car crash to relevant authorities, including local law enforcement, the rental car company, and your insurance provider. For example, Florida law requires that accidents resulting in bodily injury, death, or property damage exceeding $500 be reported to the police or nearest law enforcement agency immediately.
- Document the Scene: Gathering evidence at the accident scene is vital for insurance claims and for the later determination of what exactly happened. Take photographs of the damages, the vehicles, the individuals involved, license plates, etc., collect witness statements and contact details, and note down the accident’s location, date, and time to support your case.
- Seek Medical Attention: Even if you do not feel injured right away, it’s essential to seek medical attention as soon as possible. Some injuries, like whiplash or traumatic brain injuries, may manifest symptoms hours or days after the accident. Prompt medical attention helps identify injuries and ensures appropriate treatment. Delaying medical care can also impact your insurance claim and ability to recover damages.
Are You Personally Liable For Damages/Injuries Resulting From A Car Crash You Are Involved In/At Fault With A Rental Car?
As a general rule, if you are involved in a car crash while driving a rental car and you are at fault, you can be held personally liable for damages and injuries resulting from the accident. However, this can be mitigated by having the appropriate insurance coverage as part of your rental agreement. If you are at fault for the accident, your liability coverage under your auto insurance policy may cover medical expenses for other parties involved in the accident, up to the limits of your policy. In some cases, the injured parties may file a lawsuit seeking compensation for medical expenses, lost wages, and other damages. Your insurance company may represent you in court and cover the costs of legal defense, settlement, or judgment, depending on the terms of your policy.
It is important to note your automobile insurance coverage for your vehicle that is located outside of the Untied States will usually not provide you coverage for an accident in the Untied States. This is why we encourage all non-United States residents who rent a car while visiting the United States to always elect the liability insurance coverage offered by the rental company. Although this coverage can add a significant expense to your rental cost, we find that it is well worth the protection it offers. Such coverage not only provides you with protection for your own negligence, including legal defense fees and costs, but may also provide some coverage for damages caused by the negligence of another driver (what is known in the US as UM/UIM Uninsured and Under-Insured Motorist coverage).
How Do Lawsuits Work?
If you want to know more about how lawsuits work in the US please take a look at our article on civil lawsuits.
Why Is Insurance So Important When Renting A Car?
Having adequate insurance in case of an accident will help protect you financially if you are at fault for causing injuries or property damage to others. It is important to understand the extent of coverage, if any, provided by your own insurance company versus that provided by the car rental company:
- Collision Damage to Your Rental Vehicle: For US residents who own a vehicle, your personal insurance policy with collision and comprehensive coverage typically extends to your rental car. However, the same is almost never true for non-US residents who are visiting the US and for those whose policy lacks this coverage. We encourage non-US resident visitors to the US to consider purchasing a collision damage waiver from the rental company to avoid paying for damages to your rental car.
- Damage to Others: For US residents, liability insurance usually covers rental cars as well. If you lack liability insurance, you can purchase supplemental liability protection from the rental agency to cover damage to other vehicles or property. Again, we strongly encourage non-US resident visitors to the US to purchase extended protection liability insurance (https://www.urbanthier.com/blog/2019/07/rental-car-insurance-policies-at-a-glance/).
- Credit Card Coverage: While some credit cards offer rental car coverage, they often do not cover liability insurance and contain many exclusions to coverage. Accordingly, we recommend purchasing liability insurance to avoid being responsible for the damages, including medical and car repair expenses, of other parties involved in the accident.
- Potential Extra Rental Days: Without rental coverage on your policy, you may owe the rental company for additional days needed for car repairs. Purchasing extra insurance or a collision damage waiver from the rental company can help avoid this expense.
Understanding Primary And Secondary Coverage
- Primary Insurance: This insurance type kicks in first when you file a claim. It may provide complete coverage in any accident, covering both the cost of the car you hit (if at fault) and damage to your rental car.
- Secondary Coverage: Secondary coverage can cover fees not included in your primary insurance policy, such as deductibles. Even with secondary coverage, you’ll need to file an initial primary insurance claim, potentially leading to increased rates.
- Some credit cards offer primary coverage, sparing you from filing a claim with your own insurance company. However, to utilize primary coverage, you typically need to decline the collision damage waiver offered by the rental car company.
- Many travel credit cards offer secondary coverage, which can still be beneficial in case of an accident, although we find that it is typically not as comprehensive.
Keep In Mind
- Most travel credit card rental coverage may not extend to special vehicles like RVs or luxury cars, loss or damage covered by your own auto insurance, long-term rentals, or rentals in foreign countries.
- Regardless of fault, you are required to pay your deductible directly to the rental company for prompt car repairs. Your insurance company will then pursue reimbursement from the responsible party.
Given the complexity of the legal system in the US involving accident and insurance claims, seeking legal representation is essential for protecting your rights and pursuing fair compensation. Experienced personal injury attorneys can help navigate the legal process, gather evidence, negotiate with insurance companies, and advocate on your behalf. At Urban Thier & Federer, our seasoned attorneys have a proven track record of success in personal injury and wrongful death cases. Contact us today for a consultation and let us fight for the compensation you deserve.