Dealing with a car crash while on vacation is difficult enough on its own. It can be even more complex if you were driving a rental car. These accidents can raise tough questions about insurance, rental agreements and financial responsibility.
Insurance coverage questions may arise
You may assume the rental company pays for everything, but that is not always the case. Responsibility often depends on the policies involved.
New Jersey law does require rental car companies to provide minimum liability insurance on their vehicles, though that protection may be limited. Other sources of insurance may include:
- Your personal auto insurance policy
- Extra insurance purchased through the rental company
- The insurance policy of another driver involved in the crash
The details of the wreck and the terms of each policy affect will decide which insurance pays first.
Rental contracts and your duties
Your rental agreement may shape what happens after the accident. Most contracts require you to report the crash and provide information about what happened.
If the car cannot be driven, the rental company may arrange towing, repairs or a replacement vehicle. However, that contract may also explain how the company handles damage claims and fees. If you don’t follow the rules in the deal, you could be left with a much larger bill.
Drivers may face financial responsibility
A rental car accident may lead to financial claims against you. Depending on the situation, different parties may seek payment for damages related to the crash.
These costs may include vehicle repairs, insurance deductibles or claims related to property damage or injuries. In some cases, a rental company may also seek payment for damage to the vehicle or “loss of use” while the car is in the shop and cannot be rented to others.
Understanding what may follow an accident
Rental agreements and insurance terms can vary widely. Because of this, what happens after a rental car accident often depends on the details of the crash and the policies involved. Understanding these factors can help you navigate what may come next after an accident away from home.