Here's What Happens if you Crash a Rental Car
Rental insurance or your own coverage can cover you if you're in a crash with a rental car.
Written by Bonnie Stinson
Edited by Georgina Grant
If you’re involved in an accident while driving a rental car, exchange insurance information with the other parties involved in the accident, inform the rental car company, and contact your insurer to determine who will pay what costs.
- Depending on your coverage, you may be on the hook for paying your deductible, the entire repair cost, and/or any unusable days left on your rental—and your rate may increase at your next policy renewal.
- It’s worth buying a collision waiver from the rental company ahead of time if your personal policy does not include collision coverage.
- Credit card coverage for rental cars does not usually include liability insurance, and some credit cards limit coverage to certain types of cars or do not offer primary coverage.
- Depending on your coverage, you may be on the hook for paying your deductible, the entire repair cost, and/or any unusable days left on your rental—and your rate may increase at your next policy renewal.
- It’s worth buying a collision waiver from the rental company ahead of time if your personal policy does not include collision coverage.
- Credit card coverage for rental cars does not usually include liability insurance, and some credit cards limit coverage to certain types of cars or do not offer primary coverage.
What to do after an accident in a rental car
Accidents can be stressful, but here are the steps to follow:
- Make sure that everyone is okay: If anyone is injured, call 911 immediately. Safety is paramount, so if possible, carefully pull your car to the side of the road. If a car is smoking, get a safe distance between yourself and the car in case of anyfire or explosions.
- Exchange contact information and insurance information: Get the names, contact information, driver’s license information, license plate information, and insurance information from all involved drivers. If there were any witnesses, make sure to get their contact information as well.
- Document the scene: Be as detailed as possible with your notes of the scene, and don’t hesitate to take as many photos as you need in order to give your insurer a complete picture of what happened.
- Contact your rental company: There should be a contact number listed on your rental car agreement, as well as a sticker inside the glove box with an emergency number listed on it. When you contact your rental company, they will give you instructions on how to proceed. To start, you’ll likely have to fill out an incident report about what happened.
- Contact your insurance company: If you are using your own insurance for primary coverage when renting a car, you need to inform your insurer in order tofile a car accident claim report. Be sure to inform them of any supplemental insurance you purchased from the rental company.
Car insurance and rental car accidents
Damage to the rental car
If your own personal auto insurance policy has both
collision
and comprehensive
coverage, that will likely cover you for any damages to the rental car in an accident.If your own policy doesn’t offer collision or comprehensive coverage, it might be a good idea to buy a collision waiver from the rental company, just in case. If you have no coverage, any damages to the rental car will be borne by you alone.
Damage to other parties
If you already carry
liability insurance
, that should cover you for any damage you cause to other vehicles, even while driving a rental.If you don’t have liability insurance, it is a very good idea to buy supplemental liability coverage before you drive off in a rental—you can buy this from the rental company, which will cover you in case you cause any damage or injury with the car.
A note about credit cards—they typically do not offer liability coverage. If you don’t have a personal car insurance policy, it is a good idea to buy supplemental liability coverage when renting a car.
A damaged rental car with rental days remaining
Without rental coverage on your car insurance policy, you may still owe the rental company for any unused remaining days with the rental car, even if it's damaged and cannot be driven.
This fee is also known as a loss-of-use charge.
When a rental car is damaged, these charges apply to make up for the revenue lost while the rental car is out of commission. Even if the car is out of commission, the rental company may count those days as extra days that need to be paid for, as if the car was in use.
Buying a collision damage waiver or extra insurance from the renter can usually cover you in such a situation. Most auto insurance companies do not cover this fee, but many credit cards do. If you’ve purchased the rental car with your credit card, be sure to reach out to your credit card company to confirm your benefits
MORE: How to avoid being unfairly charged for rental car damage
Primary and secondary coverage—what’s the difference?
In the world of rental car insurance, you’ll hear a lot about primary and secondary coverage. Here’s what both of those terms mean:
- Primary coverage: Your primary coverage is enabled once you file a claim. As long as you pay your premiums, many insurance policies provide full coverage if you’re in an accident. This means that—if you’re at fault—any damage you cause to another driver’s car, as well as any damage sustained by the rental car, will be covered.
- Secondary coverage: This type of coverage typically pays for charges and fees that your primary coverage won’t pay for, like refunding your deductible. Even when using secondary coverage, you’ll have to have filed an initial primary claim, which can result in your overall premiums going up.
Credit cards
Some credit card companies offer primary coverage, which means that you wouldn’t have to file a claim with your insurer in the case of an accident. But again, only some credit cards offer this—ask your provider about this before assuming your credit card can fully protect you. It might not.
If your credit card does offer primary coverage, it will probably be applicable only if you decline similar coverage from the rental company.
Some travel credit cards provide secondary coverage, which can save you some money, but typically it won’t offer as much coverage as a card that offers primary coverage.
Keep in mind, any rental car coverage on a travel credit card usually does not cover luxury cars or RVs, long-term rentals, rentals overseas, or any loss or damage covered by your own auto insurance policy.
Key Takeaway Some credit cards provide car insurance, but ask your credit card provider if this coverage extends to rental cars.
Rental car accidents where you’re not at fault
If you’re
not at fault in an accident
with a rental car, you will still have to pay your deductible to the rental company, as they will want the car back on the road as soon as possible.Your own insurer will go after the at-fault party, and you may get reimbursed for your deductible down the line.
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What is considered damage to a rental car?
Rental companies follow different guidelines for defining damage to a rental car, but in general, any crack, dent, scratch, or other damage two inches or more in length will be considered damage.
What happens if you crash a rental car without insurance?
If you decided not to get rental insurance, your credit card won't cover damages, and your personal insurance won't cover damages, you are responsible for paying for the damages. However, if another driver is at-fault, their liability policy will likely cover property damage up to their policy limit. That's one reason why it's important to exchange insurance information with the other drivers in a crash.
Does rental car insurance cover a cracked windshield?
If your rental car gets a crack in the windshield, the damage might be covered depending on the type of coverage you have. Windshield repairs might be covered by your collision damage waiver from the rental company, your regular insurance policy, or the credit card you used to book the car.
