What Happens If I’m In a Car Accident In a Rental Car When Traveling?

Getting into a crash is stressful under the best of circumstances, but when it happens while you’re traveling in a rental car, confusion about who pays, who to call, and what paperwork you need can make a bad day much worse. In this blog, we walk you through what typically happens after a rental car accident, what protections might apply (personal insurance, credit-card coverage, or the rental company’s waivers), practical next steps at the scene, how these car accident claims are handled, and common traps to avoid.

“If you’re injured or facing a disputed claim after a crash in a rental car, protect your rights early. Insurance and rental agreements can be complicated, you shouldn’t have to sort it out alone while you’re recovering. That’s why our Illinois injury attorneys are here to help.” — John J. Malm, Naperville car accident lawyer

What To Do After a Rental Car Accident

If you’re involved in an accident in a rental car, follow these immediate steps. They protect your safety and preserve evidence important to any insurance or legal claim:

• Stop and secure the scene. Move to a safe location if possible; turn on hazard lights.
• Check for injuries. Call 911 for medical help if anyone is hurt.
• Call the police. A police report is often essential for insurance and rental-company procedures.
• Exchange information. Get names, contact info, insurance, license plates, and driver’s license numbers from other drivers and witnesses.
• Document everything. Take photos of the damage, license plates, road conditions, traffic signs, and visible injuries — and keep the rental agreement and any receipts.
• Notify the rental company. Most rental contracts require immediate notification of accidents; failing to report promptly can jeopardize coverage.
• Don’t admit fault. Be factual with emergency responders and the police; avoid saying “I’m sorry” in a way that could be taken as admitting liability.

These steps are essential whether you bought the rental company’s protection or plan to rely on other coverage. Rental contracts frequently include notification and cooperation requirements and violating them can create coverage problems.

Who Pays For the Damage?

There are three common sources that may cover damage or liability after a rental car crash:

1. Your personal auto insurance policy:
   • Most personal auto policies follow the driver and will extend the same coverages (liability, collision, comprehensive) to a comparable rental vehicle used for personal travel. However, coverage details vary by policy. Some policies exclude certain uses (e.g., business rentals) or cap limits. Always read your declarations page and speak with your insurer before travel.
2. Credit-card rental coverage:
   • Many credit cards (especially travel-focused cards) offer rental-car collision coverage as a cardholder benefit. This may be primary (pays before your personal policy) or secondary (pays after your personal policy). Coverage terms, exclusions (sports cars, trucks, certain countries), and required usage rules (you usually must pay for the rental with the card and decline the rental company’s damage waiver) differ by issuer, so check the card’s guide.
3. The rental company’s protection products (CDW/LDW and liability products):
   • Rental companies sell a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) that, if purchased, generally waives the company’s right to collect for damage or theft of the vehicle (subject to exclusions and conditions). Importantly, CDW/LDW are waivers, not insurance, and they usually do not provide third-party liability coverage (damage to others or bodily injury) unless you also buy a liability supplement.

Typical Claim Process After a Rental Car Accident

• Police report and medical care first. If there are injuries or significant damage, get a police crash report and any medical documentation.
• Notify your insurance company and credit-card provider (if applicable). If you have collision coverage, notify your insurer promptly; if you plan to use credit-card coverage, notify the card issuer according to their claim procedures.
• Work with the rental company. The rental company will inspect the vehicle and may hold you responsible pending resolution. If you purchased CDW/LDW, present proof of purchase. If you decline CDW/LDW, you may be contractually responsible for damage during the rental period.
• Claims adjuster and documentation. Expect adjusters from insurers (personal, credit card, or the rental company’s insurer) to request photos, the police report, repair estimates, and witness statements. Keep copies of every document and all repair invoices.
• Possible rental-company hold on card. Rental companies commonly place a hold for the contract deductible or estimated damage on the card used at pickup. If another insurer ultimately pays, that hold should be released; if it’s not, you’ll need written proof of the insurer’s decision to dispute the charge.

Common Complications

• You declined CDW/LDW but lack collision coverage. If your personal policy has only liability (no collision/comprehensive), you may be fully on the hook for damage to the rental unless you have credit-card coverage. Consumer Reports and insurance experts warn travelers to confirm coverage before declining the rental-company waiver.
• Liability vs. physical damage confusion. CDW/LDW generally covers the rental’s physical damage but not liability to others; that means you’ll still need liability coverage for injuries or other vehicles. Your personal auto policy typically provides liability, but if you’re uninsured or underinsured, you may face serious exposure.
• Exclusions and “fine print.” CDW/LDW often excludes certain items (windshield, tires, undercarriage, intentional damage, driving under influence), and credit-card policies may exclude certain vehicle classes or countries. Read the fine print before relying on any single source of coverage.

Practical Tips to Protect Yourself Before and During a Car Rental

• Check your auto policy and talk to your agent about rentals (personal vs. business use), limits, and whether a deductible would apply.
• Check your credit-card benefits guide for primary vs. secondary rental coverage and applicable exclusions.
• Decide on CDW/LDW at checkout only after confirming other coverages. If you’re uninsured, renting for business, or traveling abroad where card coverage or personal policies won’t apply, buying the rental company’s waiver makes more sense.
• Document pre-existing damage. Walk the car with an agent, note scratches/dents on the contract, and take timestamped photos before you drive away.
• Keep all receipts and the police report if something happens. These are crucial when filing a claim.
• If injured, seek medical care and keep records. Even minor symptoms can become significant. Medical records are important for claims or legal action.

When to Contact an Illinois Car Accident Attorney

It’s important to contact an attorney experienced in handling rental car accident claims when there are:

• Serious injuries requiring hospitalization or ongoing care.
• Disputed liability where the other party or the rental company blames you.
• Denial of coverage by your insurer, credit-card benefits administrator, or the rental company.
• Claims for lost wages or long-term care.

An attorney can identify all potentially liable parties (the other driver, rental company, vehicle owner, or vehicle manufacturer in rare cases), assist with proving damages, and negotiate with insurers so you aren’t left paying out of pocket for someone else’s negligence.

Frequently Asked Questions about Rental Car Accidents When Traveling

Q: Will my personal auto insurance pay for damage to a rental car?
A: Usually, yes for personal travel if you have collision and comprehensive on your policy and the rental is comparable to your insured vehicle, but rules and limits vary by insurer and state. Check with your insurer before traveling.

Q: Do credit cards really cover rental car damage?
A: Many credit cards offer rental collision coverage, but it can be primary or secondary with specific exclusions. To trigger card coverage, you typically must pay for the rental with that card and decline the rental company’s CDW/LDW. Always read the issuer’s claim guide.

Q: If I bought the CDW from the rental company, am I fully protected?
A: CDW typically covers physical damage to the rental (subject to exclusions) but may not cover damage to other vehicles, property, or people, that’s liability insurance. Review the rental agreement and confirm what the waiver covers.

Q: What if the other driver runs away (hit-and-run)?
A: File a police report and notify your insurer and the rental company. If you have uninsured motorist or collision coverage that applies to rentals (or purchased CDW), those may cover hit-and-run damage.

Q: Can I be arrested at the scene for an accident in a rental?
A: If there are aggravated circumstances, such as driving under the influence, reckless operation causing serious injury, or outstanding warrants, law enforcement can take action. Otherwise, most crashes are handled through police reports and insurance claims. Always cooperate with officers.

Contact the Top-Rated Illinois Car Accident Lawyers at John J. Malm & Associates

If you’ve been in a crash while renting a vehicle, the immediate steps you take: documenting the scene, getting a police report, preserving medical records, and notifying the rental company and insurers can make or break your ability to recover for injuries and property damage. Insurance sources and waivers overlap in confusing ways: your personal auto policy, your credit card, and the rental company each have different rules, limits, and exclusions. If there are injuries, disputed liability, or coverage denials, contact John J. Malm & Associates for a free consultation so we can review your rental agreement, insurance declarations, and the facts of the crash. We’ll explain your rights and options and handle the claims and negotiations so you can focus on recovery. You don’t have to sort through insurance jargon while you’re healing. Call us and let us help you get the compensation you deserve.