If you have ever rented a vehicle, then you know that the amount of paperwork that you had to sign is fairly significant. Somewhere in all of that paperwork, there was information dealing with what to do in the event a vehicle accident occurred while you were driving the rental. However, even if you sift through the paperwork to try to see what steps you need to take next, you will still likely be confused. Here, we want to discuss whether or not you will be covered by insurance after a vehicle accident occurs in a rental car in Philadelphia.
Insurance Concerns After a Rental Car Accident
If you have a rental car, then you are likely on vacation or on a business trip. However, that may not always be the case. You may have a rental car because your vehicle is out of commission due to repairs. Regardless of how or why the vehicle accident occurs when you have a rental, the reality is that these incidents can be incredibly stressful. However, there are several insurance options that you may or may not be aware of after a collision occurs.
When you rent a vehicle, you are contractually obligated to return the vehicle in the same condition that it was when you first got it from the company. This is true even if the damage was caused by the negligence of another party. If you get into an accident when you have a rental, there are three possible sources of insurance coverage in these situations – the rental car company insurance, your personal car insurance, and insurance provided through the credit card company you used to pay for the rental.
Rental Company Insurance
When a person rents a vehicle, the rental company will always ask if the renter wants to add additional insurance coverage while they have the vehicle. There are various types of coverages made available by the rental company, including the following:
- Collision damage waiver. This refers to the type of coverage that is also called a loss damage waiver. With a collision damage waiver, the rental company will waive any vehicle repair or replacement costs if the vehicle sustains damage or if there is a theft while the renter has the vehicle. There are various exceptions to this, including if the renter operated the vehicle recklessly.
- Liability coverage. Liability coverage offered by the rental company will pay for property damage or medical expenses incurred by other individuals in a vehicle accident that the renter may cause. In general, this liability coverage offered by the rental company will overlap with a driver’s personal car insurance.
- Personal accident insurance. This type of insurance will pay for any injuries to the rental car driver or the rental car driver’s passengers in an accident involving the rental vehicle.
- Personal effects coverage. This type of coverage will pay for the damaged or lost property as a result of rental vehicle theft or a collision.
Driver’s Personal Insurance
If a person who rents a vehicle has their own car insurance coverage, this will typically parallel all of the types of coverage provided by the rental company that we mentioned above. Of course, not all personal insurance policies look exactly like this. Some people have comprehensive and collision coverage, while others may not.
If a person chooses not to carry the additional insurance offered by the rental company, they typically have to provide proof that they have their own insurance that will help cover expenses in the event a collision occurs.
Credit card company insurance
When a person rents a vehicle, they typically do so using a credit card. Many credit card companies have automatic car rental insurance built into their policies. This coverage could help pay for any damage that occurs to the vehicle while the cardholder is operating it.
Need help? Call Ciccarelli Law Offices Car Accident Attorneys in Philadelphia | Free Consultation |(215) 228-0100