What Happens if You Crash a Rental Car

What happens if you crash a rental car? A routine drive can quickly become a stressful legal and financial ordeal. Navigating insurance coverage, contacting the right parties, and understanding your obligations to the rental car company can feel overwhelming—especially if you’re far from home or unfamiliar with the terms of your rental agreement.

This article will explain what to do if you’ve been in an accident in a rental, covering the immediate steps to take, how different types of rental car insurance work, and what types of accident-related expenses you might face. The following information is helpful in all circumstances, even if the crash wasn’t your fault.

Immediate Steps to Take After a Rental Car Accident in Chicago

If you’ve been in an accident in a rental, begin by ensuring everyone is safe. If anyone is injured, call 911 right away. Seeking medical attention also helps document potential medical expenses and injuries tied to the incident.

Check for injuries and request emergency medical assistance. Then, if possible, move the vehicles out of traffic to avoid further harm. Always contact the police to file an official police report. This step is essential when dealing with any insurance provider, whether it’s your own insurance company, the rental agency, or the credit card provider.

Be sure to exchange information with all involved drivers, including names, phone numbers, addresses, license plate numbers of other cars, and insurance information. You should also take photos of the accident scene, vehicle damage, license plates, and road conditions. If there are witnesses, politely ask for their contact details.

Most importantly, avoid admitting fault. Statements you make, even casually, could be used against you later.

Reporting the Accident to the Car Rental Company

After addressing immediate safety and calling law enforcement, notify the rental car company immediately. The contact number is usually on your rental paperwork, on a sticker inside the glove box, or in the rental contract.

Explain what happened, but avoid making assumptions about who caused the crash or acknowledging fault. Let the rental car company insurance process and official investigation determine that. Some rental companies may request that you complete a car accident report form or take the vehicle to a nearby location for inspection. 

Contact Your Auto Insurance and Credit Card Company

Your next call should be to your own insurance company. If you have a personal auto insurance policy, it might provide rental car coverage, especially if you declined the car rental insurance offered by the rental agency. Coverage typically includes liability insurance, and may also include comprehensive coverage and collision coverage, depending on your plan.

If you paid for the rental car with a credit card, reach out to your credit card company. Many credit cards offer credit card insurance for rental vehicles if your auto policy is exhausted. Some premium cards may provide primary coverage, but it’s essential to confirm your benefits directly with your credit card issuer.

Understanding Insurance Company Coverage for Rental Car Accidents

Rental car insurance can be complicated because several layers of coverage may apply. Whether you’re dealing with a car rental company’s insurance, personal car insurance, or a credit card provider’s insurance, each policy has its own limits, exclusions, and responsibilities.

Your Personal Auto Insurance Policy

If you carry a personal car insurance policy, it often extends to rental vehicles. The auto insurance policy may include liability coverage (for damage to other vehicles or injuries to other people) and collision and comprehensive coverage (for damage to the rental car itself). 

Keep in mind, you may still be responsible for a deductible, and filing a claim could impact your premium.

Car Rental Insurance: Collision Damage Waiver (CDW) / Loss Damage Waiver (LDW)

When you rent a car, the rental company may offer you a collision damage waiver or loss damage waiver. These are not technically insurance, but rather an agreement that the rental car company won’t hold you financially responsible for damage to the vehicle. 

These waivers usually don’t cover liability insurance, so if you injure someone or damage another car, you may still be responsible.

Waivers may also be voided if the crash involved reckless driving, an unauthorized driver, or a driver who violated the terms of the contract.  

Supplemental Liability Coverage from the Rental Company

If your own policy has low liability limits or no coverage at all, the rental car company insurance may offer supplemental liability coverage. This protects you from personal financial exposure if you’re at fault in a car crash and need to cover medical bills, vehicle damage, or other claims related to experiencing an accident in a rental.      

Personal Accident Insurance and Personal Effects Coverage

Many car rental companies also offer optional add-ons such as personal accident insurance and personal effects coverage. The former helps pay for medical treatment for you and your passengers, while the latter can reimburse you for items stolen or damaged inside the rental car. 

These are less commonly used if you already have health insurance to cover your medical bills or homeowner’s insurance that covers personal property.

Credit Card Insurance for Rental Cars

As mentioned earlier, your credit card may offer rental car insurance, especially if it’s a travel rewards card. Credit card providers often offer secondary coverage, meaning it can reimburse you for repair costs and towing fees after your auto insurance pays. However, this typically does not include liability coverage or injury claims.

What Happens if the Other Driver Caused the Accident?

If the other driver caused the car accident, their insurance should be responsible for injuries, medical expenses, and property damage. However, since the rental car company may initially charge your card for damages, you’ll need to work with your insurer and the other driver’s insurance company to be reimbursed.   

Be prepared to provide documentation and stay in contact with the claims adjuster. Keep all receipts and written communications related to repair costs, towing, and additional costs incurred due to the car accident.  

Potential Costs You Might Face After a Rental Car Accident

Even if you were not at fault or the car accident was due to someone else’s negligence, you could still face several expenses. These accident-related costs may include: 

• Deductibles on your auto insurance or collision damage waiver.
• Loss of use fees charged by the rental company for each day the vehicle is out of service.
• Diminished value—the decreased resale value of the damaged rental car.
• Administrative fees that the rental car company may impose for processing the claim.
  

Some rental agencies charge administrative fees even when the damage is minor or fully covered by insurance.

How to Avoid Unexpected Costs After a Rental Car Crash

To avoid unexpected costs when dealing with an accident in a rental, be proactive:

Inspect the car for damage before driving off the lot and take time-stamped photos. Understand what your insurance policy covers, including what your auto insurance and credit card providers offer. Consider purchasing additional insurance if your existing coverage is minimal or has high deductibles.

Always comply with the rental car company’s reporting policies and follow up to ensure documentation is complete.

What if You Were Injured in a Rental Car Accident?

If you sustained injuries in a rental car crash, your medical treatment and recovery should be handled separately from the damage claim. Depending on the circumstances, you may be able to seek compensation from:

• The responsible party’s liability insurance;
• Your own personal car insurance, if it includes PIP or Med-Pay;
• The rental car company insurance (in rare cases involving mechanical failure or negligence).
  

Don’t assume the rental agency will be liable because you were driving their car. Like any injury claim, fault and insurance coverage must be proven. 

Do I Need to File a Police Report After a Rental Car Accident?

Yes. In Illinois, under 625 ILCS 5/11-407, filing a police report after a car accident is required for crashes involving injuries, death, or more than $1,500 in damages. More importantly, having a police officer on site provides critical documentation when dealing with an insurance provider, credit card company, or rental company.    

Without a police report, your claim may be delayed or denied altogether.

The Statute of Limitations for Car Accident Claims in Illinois

In Illinois, under 735 ILCS 5/13-202, you generally have two years from the accident date to file a personal injury lawsuit, and five years for property damage claims. However, it’s always best to act quickly.

Delays in filing may reduce your chances of recovering full compensation. If you’re unsure about your timeline, speak with an attorney to protect your rights.       

How a Chicago Car Accident Lawyer Can Help

After an accident in a rental, an experienced attorney can help you navigate the complex intersection of car insurance, rental car insurance, and credit card insurance. This step is crucial when multiple insurance companies are involved or liability is unclear. 

A lawyer can assist by:

• Identifying all applicable policies, including secondary coverage.
• Managing communication with the rental car company and insurers.
• Ensuring you aren’t held financially responsible for damage you didn’t cause.
• Gathering evidence, from witness statements to accident reports.
• Filing a lawsuit (if necessary) to pursue compensation.
  

At Rosenfeld Injury Lawyers, we’ve helped thousands of clients recover damages after car accidents, including those involving rental vehicles.

Understanding Negligence and How It Applies

In most accidents, liability hinges on negligence. If a driver caused the collision by speeding, texting, or failing to yield, they may be held responsible for injuries and damage.

Proving negligence when dealing with an accident in a rental involves showing that the other party failed to act with reasonable care, and that someone else’s negligence directly caused your losses. This applies whether you were driving your own vehicle or a rental car.

Frequently Asked Questions About Accidents in a Rental

Do I need to buy the insurance they offer?

Not always. If your credit card or auto insurance provides sufficient rental car coverage, you may not need to purchase insurance from the rental company. But if you want peace of mind, additional coverage can help.

What if I’m not sure who caused the accident?

If the other driver contributed to the accident, let the police report and insurance investigators determine fault. Avoid speculating at the accident scene, arguing with the other driver, or making statements to the rental company or insurance provider.

What if the rental car company is pressuring me to pay?

Do not agree to anything or pay charges without speaking to your own insurance provider or an attorney. The rental agency may attempt to shift responsibility before a proper investigation is completed.

Contact Our Chicago Car Accident Lawyers for a Free Consultation

If you’ve been involved in a rental car accident, the legal team at Rosenfeld Injury Lawyers is here to help. We understand the complexities of insurance claims, the fine print of car rental insurance, and how to hold the person responsible accountable.

Our Chicago car accident lawyers offer free consultations and work on a contingency fee basis, meaning you pay nothing unless we recover compensation on your behalf.
Call us today at (888) 424-5757 or complete our online form to schedule your consultation.

All content undergoes thorough legal review by experienced attorneys, including Jonathan Rosenfeld. With 25 years of experience in personal injury law and over 100 years of combined legal expertise within our team, we ensure that every article is legally accurate, compliant, and reflects current legal standards.