Who Is Responsible in a Rental Car Accident?

Rental Car Accident Liability: What You Need to Know

A car accident is stressful enough. Add in the fact that one of the vehicles is a rental car, and the situation can feel even more complicated. Who’s responsible? Does your insurance cover it? What about the rental company’s policy?

Here’s what you need to know about who may be liable after a rental car accident and how to protect your rights.

Who Is Liable in a Rental Car Accident?

In most accidents—rental car or not—liability rests with the party at fault. If a driver’s negligence causes a crash, they’re legally responsible for paying for the injuries, property damage, and other losses of the victims.

Liability can fall on:

• The negligent driver

• An employer (if the crash occurred during work duties)

• A vehicle manufacturer (if a defect caused the crash)

• A government agency responsible for dangerous road conditions

• A bar, restaurant, or social host who overserved an intoxicated driver

If the at-fault driver has liability insurance, their insurer typically pays first—up to the policy’s limits. Any amount over that can still be collected from the driver directly.

Florida’s No-Fault Rules

Florida requires drivers to carry Personal Injury Protection (PIP) insurance. PIP pays for medical bills, lost wages, and certain other expenses regardless of who caused the accident. It also covers passengers, pedestrians, and cyclists in many situations.

However, you can only step outside the no-fault system and sue an at-fault driver in Florida if you’ve suffered a “serious injury,” such as permanent loss of function, significant scarring, or death.

Does a Rental Car Change the Liability Rules?

Generally, no. The same rules apply whether you were driving your own car or a rental. After a crash, you can still pursue the at-fault party for compensation once your PIP benefits are exhausted.

Why Rental Car Companies Are Rarely Liable

Before 2005, rental companies in some states could be automatically liable for damages caused by their renters. That changed with the federal Graves Amendment, which shields rental companies from automatic liability.

However, if the rental company’s own negligence caused or contributed to the crash—such as renting out an unsafe vehicle—they can still be held responsible.

Understanding Rental Car Insurance Coverage

Insurance can be confusing in rental car cases. Here are the key points:

• Insurance doesn’t erase liability. If you’re at fault, you’re still legally responsible for damages.

• Rental companies carry minimum insurance. In most states, including Florida, that coverage comes with the rental—no extra purchase required.

• Your own auto insurance may apply. Many drivers already have coverage through their personal policies. Rental contracts often make your insurance “primary” and the rental company’s “secondary.”

• Collision Damage Waiver (CDW). This optional add-on shifts responsibility for vehicle damage away from you. Many drivers don’t need it because their own insurance or credit card benefits already cover rental car damage.

Paying for Damage to the Rental Car

If your rental is damaged, the contract often makes you immediately responsible for repairs—even if the accident wasn’t your fault. In practice, you may use your auto insurance or credit card coverage to pay first, then seek reimbursement from the at-fault driver’s insurer.

What to Do After a Rental Car Accident

The steps you take after a crash can make a major difference in your recovery and your claim:

1. Seek medical attention immediately. Even if you feel okay, some injuries take time to appear.

2. Report the accident. Notify law enforcement and the rental company right away.

3. Be cautious with insurance adjusters. Stick to the facts and avoid admitting fault.

4. Contact a lawyer before accepting any settlement. Insurance companies often offer far less than you deserve.

Speak With a Rental Car Accident Attorney Today

If you were injured in a rental car accident—whether as a driver, passenger, pedestrian, or cyclist—you may have the right to significant compensation.

The experienced attorneys at Applebaum Accident Group know how to navigate the unique challenges of rental car accident claims. We’ll protect your rights, deal with the insurance companies, and fight to get you the full compensation you deserve.

(855-Call-Paul) Call us today for a, no-obligation consultation.