Who is Responsible if I’m Hit by a Rental Car?

Dealing with the aftermath of a car accident is always difficult, especially if you’ve been injured. You’re left to juggle medical care, recovery, getting your vehicle repaired or replaced and trying to sort out who is responsible for your losses. That process can be even more complicated when the driver who hit you was operating a rental car.

What Happens When the Driver of a Rental Car Causes an Accident? 

The general rule that a driver who is negligent and causes an accident is liable for damages still applies, regardless of whether that driver is operating their own vehicle or a rental car. However, the process of pursuing damages may be more complicated.

Whose Insurance Covers a Rental Car Accident? 

Assuming the driver of a rental car is at fault, their insurance carrier will be responsible for taking the claim and paying any compensation to those injured in the accident. That’s a little trickier when the car is a rental vehicle, though. That’s because there are multiple possible insurance carriers involved. 

Depending on the choices the driver made when renting the vehicle, the applicable insurance may be: 

• The driver’s own motor vehicle liability insurance
• Liability insurance sold to the person who rented the vehicle by the car rental agency
• Liability insurance provided by a third party, often the driver’s credit card company

In each case, the insurance carrier will have taken on responsiblity–up to the coverage limit–for covering damages caused by the driver’s negligence. But, the driver themself may not be sure which type of coverage applies, and may not have provided you with the right information at the accident scene. 

An experienced car accident lawyer can help you determine which insurance company to file your claim with, as well as the limits of that liability and whether there are additional sources of compensation to pursue.

Is the Rental Car Company Ever Responsible for Accident Damages? 

If the accident is caused by the rental car driver’s negligence, responsibility typically lies with the driver. However, there are some situations in which the rental car company may be directly liable for accident-related damages. For example: 

Faulty Maintenance of a Rental Vehicle

If the rental car company fails to properly maintain the vehicle and that faulty maintenance causes or contributes to the accident, they may be directly liable. Imagine, for example, that a rental vehicle is leaking brake fluid and the rental car company fails to notice. They rent the vehicle out very low on brake fluid, and with a continuing leak. 

The driver of the rental car gets 50 miles down the road and needs to slow quickly for stopped traffic near an accident on the highway. When the driver brakes, the pedal goes to the floor and the vehicle doesn’t stop. Because of the traffic stoppage, there is nowhere for the driver to divert to, and they crash into the rear end of the vehicle in front of them. 

The rental car company would likely be directly liable, because the faulty maintenance caused–or at least contributed to–the crash.

Negligent Entrustment of the Vehicle

Most rental car companies have strict processes for renting out vehicles, so this situation should rarely arise. However, if a rental car company rents a car to someone they should reasonably have known would be unsafe with the vehicle, they may be directly liable. 

For example, say the driver was visibly intoxicated when they showed up to collect their rental car. The attendant recognized the signs of intoxication, but the driver was a regular customer and had pre-paid for the rental online, so they handed over the keys anyway. On the way home from picking up the car, the intoxicated driver hit a pedestrian.

Because the rental car company knowingly put the vehicle in the hands of someone they knew or should have known presented a danger to other drivers and pedestrians, they could be directly responsible. 

Pursuing Damages after a Rental Car Accident

If you’ve been injured in an accident with a driver who was operating a rental car, your claim may be more complicated than the typical car accident case. You’ll still have to prove that the other driver was at fault and provide evidence of your damages, but you’ll also have to sort out which insurance company you should be dealing with and whether anyone other than the driver may be liable. Leaving someone out could mean you don’t get full compensation for your losses.

The best way to make sure you cover all the bases and don’t leave money on the table is to talk to an experienced Massachusetts car accident lawyer right after your accident. You can schedule a free consultation with The Broderick Law Firm right now by calling 978-459-3085 or fill out our contact form.