What Happens in a Rental Car Accident Without Insurance?
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| What Happens in a Rental Car Accident Without Insurance? |
Traffic accidents involving rental cars are unavoidable in the tourism sector, so numerous safety features have been developed to make rentals safer for tourists who choose to hire a car. Even still, automotive accidents involving rental vehicles are still incredibly deadly and occur far too frequently in the United States (one occurs every 15 seconds). Every year, 1.2 million individuals perish in traffic accidents worldwide.
These figures are shocking, and sadly, at Avrek Law we witness the consequences of car accidents (both serious and minor) every day. It is always in your best interest to get in touch with a qualified auto accident lawyer to explore your claim if you were involved in a rental car accident without insurance.
What Is Covered by Your Personal Auto Insurance?
The first line of defense for a leased car is the insurance that covers your own vehicles. In California, it is against the law to drive without insurance, and it's a good idea to keep your automobile insured in every other state as well. This provides you with fundamental liability protection for any modest car damage you might cause to another person in an accident. You can and should get a short-term or yearly insurance policy from an insurance provider if you don't own a car and don't have vehicle insurance. A fair payment should be charged for such a policy.
Your personal insurance must also include collision coverage (which pays for damage to your own car in the event of an accident with another car, object, or rollover) and/or comprehensive coverage in order to safeguard a rental car (covering damage to your vehicle caused by causes other than a collision, such as fire, theft, vandalism, flooding, fallen tree branches, etc.). An extra insurance policy called third party CDW insurance (Collision Damage Waiver) is made available to anyone renting a car.
If you have any of these coverages, read the fine print to understand exactly what they cover, or give one of the customer service agents at your insurance provider a call and ask them about the particulars of your policy.
Does Third Party Driver Coverage Include Collision Damage Waiver?
There are many options available from car rental businesses to reserve a vehicle. Depending on how we intend to use the automobile, our financial situation, and the level of personal peace we require while operating a rental car, some insurance is required and others are optional.
CDW and LDW
Insurance policies that provide loss damage waiver or collision damage waiver coverage provide coverage for any thefts or accidents that may occur while the car is being rented. These policies are available both with and without a franchise. When it comes to franchise insurance, the insurance company is only required to pay up to a particular amount; any more costs are then passed on to the insured. In a policy without a franchise, the insurer is responsible for paying for all damages.
What exactly does CDW insurance not cover may be on your mind. What exclusions exist for LDW insurance? Third-party damages are not covered by CDW or LDW insurance.
It is crucial to understand that the insurance coverage provided by insurers is void in situations when the person who hires the automobile exhibits negligence in the operation of the vehicle, such as when they drive while intoxicated or high, load the wrong fuel, etc.
When purchased directly at the rental company's counter, this extra insurance typically costs $27–$30 per day.
Accidents in Rental Cars: Primary Causes.
Over the past ten years, the number of leased cars has skyrocketed, which inexorably increases the frequency of rental car-related traffic incidents.
These incidents are primarily caused by a few factors:
1. not checking to see if the rental automobile is in excellent shape.
2. taking drugs or alcohol before a drive.
3. speeding too much.
4. disregard for pedestrians.
5. not getting enough sleep the night before a drive.
6. not maintaining a secure separation from the car in front of you.
7. using a cell phone or any other distraction-causing device while driving.
8. ignorance of the rules of the road.
9. unfamiliarity with the surroundings
What Should I Do If My Rental Car Is Injured?
It's crucial that you get in touch with the rental business right once if there is an accident. Depending on the severity of the situation, they will walk you through the measures you must take to deal with the accident and inform the authorities.
When the car involved in the accident cannot be driven safely, the client has the opportunity to get another car with comparable features, pending availability. If there is proof that the renter misused the vehicle or violated any terms of the rental agreement, the rental agency may, at its discretion, refuse to send a replacement car and end the rental agreement (driving on unpaved roads, driving under the influence of prohibited substances, etc.).
Remember that the renter must receive the accident report and/or police report in order for the insurance to be valid. Unless it is specifically mentioned otherwise in the rental conditions, it is also a good idea to find out if the cost of on-the-road support is included in the price.
Read a thorough article about what to do if you are a driver or passenger in a collision.
Is a Police Report Required?
One of the most crucial documents you'll need when dealing with major or small damage to a rental car is a police report following the accident. A police report will detail the details of the incident and identify the responsible party, making it a valuable asset in any insurance claim you wish to make. After the police officer files the report, make sure you request a copy of it.
Extra Insurance From Credit Card You Paid With.
Although several car rental agencies may add unique codes to their insurance, there are three things you should be aware of:
1.stolen automobile
2.Crashes
3.injury to or harm to other parties
Additionally, the credit card that was used to pay for the rental car may include additional insurance. It's important to understand that the additional insurance only covers accidents and car theft and does not cover any third-party losses because the value of an accident might quickly exceed the value of the vehicle in the event of theft or total loss.
Accidents involving other individuals, including pedestrians or other drivers, are covered by third-party damage insurance. There are further restrictions on credit card insurance coverage, such as the exclusion of some premium vehicles and the restriction on the number of seats per vehicle to a maximum of eight. By reviewing the Visa or MasterCard terms on their website, you can determine the specifics of a credit card's insurance coverage.
Is a Rental Car Agency Responsible?
Although the majority of rental cars come with coverage that does not require a franchise and that will protect you in a variety of situations, there are still situations when you may run out of coverage. An illustration of this would be if it were discovered following an accident that you had been using alcohol or other illegal drugs while driving. In this situation, the tenant will be totally responsible for the cost of the losses because there is no insurance to cover them.
The wrong fuel being put in the automobile, losing the keys, and generally anything else that may result from blatant negligence on the part of the contract holder are other damages that are not covered by insurance. If a rental firm is shown to have rented a vehicle with mechanical issues, it may be held liable for the damage if you bring a case against it.
Worst Rental Car Companies
The same study showed the three worst rated companies to be:
1.Dollar
2.Thrifty
3.Budget
So, how do you choose a reliable rental car agency? To start, you should carefully read the rental agreement's fine print and understand the taxes you are responsible for paying. Avoid unnecessary extras like prepaid gas and seek to be upgraded or given the specific sort of automobile you requested.
Consider whether you actually need to rent a car before proceeding. If you include in the additional costs, such as parking, petrol, and tipping the valet, you could decide to take the train or bus instead.
Do I Need a Lawyer to File a Claim After a Rental Car Accident?
After being involved in an accident in a rental car (and suffering from internal ailments, back discomfort, whiplash, fractured bones, etc.), the compensation will be frozen until the extent of the damages is established. The average response time for rental car businesses is 30 to 60 days, though it may be shorter.
Remember that most insurance policies do not function like other policies that have an understanding between insurers; if you lose the claim but were insured by a third party (your personal policy, credit card, or an outside car insurer), you will have to pay whatever you need to pay and then ask the insurer for the money after the fact.
The most crucial thing to understand is that, because the corporation is responsible, you won't have to pay anything more (perhaps just management costs).
If you don't have insurance and are in a rental car accident, you should work with a lawyer who specializes in these cases to assist you file a claim. Whether or whether you receive compensation could depend on whether you have a personal injury attorney.
Avrek has secured more than $1 billion in compensation for injured victims in more than 25,000 instances, utilizing more than 50 years of combined experience. View our locations or get in touch with us for a free consultation to learn more about how we can help you get the compensation you deserve.
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