If you are injured in a car accident, it is important to know who is liable for the resulting damages. This is especially true if a rental car caused the crash.
Different States, Different Laws & Different Policies
Different states have different laws about liability for rental cars. In some states, the rental car driver is liable for any damages resulting from the accident. In other states, the insurance company pays for any damages and then sues the rental car driver to recover its losses.
Since rental cars are often used on vacations or when travelling for work, you must understand which state’s laws apply, as accidents may occur in a different state than where you reside or normally work. If you are renting a car and get into an accident, it is important that you understand which state’s law applies before making any decisions that could affect your rights and responsibilities. On the reverse side of the crash, if you are involved in a crash that was caused by a negligent driver who was driving a rental car, you also need to know what to do and what not to do. There may be more steps to take than if the accident occurred between two privately owned cars.
Who is Responsible for Damages?
The at-fault driver is liable for any damages they cause. However, there are many sources of recovery if you are hurt due to the negligence of the driver of a rental car. It depends on which insurance policies are available and what coverage is paid for on each policy. The rental car company is liable for any damage to the rental car if the driver was in an accident and found at fault. If the driver is not found at fault, the driver will be liable for all damage incurred in an accident.
Potential Insurance Policies Involved
If you are seriously injured in a car accident that a rental car driver causes, one of the first phone calls you should make is to an experienced personal injury law firm. You will need a lawyer who knows about the type of insurance involved in these crashes and how the law applies.
Here are the potential insurance policies that may apply.
Rental Car Insurance
When you rent a car, the rental company always offers the renter extra coverage. The type and amount of coverage provided will depend on the state where the rental agreement is signed. However, this extra rental insurance could apply if the rental driver causes the crash and someone is seriously injured.
The At-Fault Driver’s Personal Insurance
In some cases, the rental driver’s insurance policy for their personal vehicle might apply. Again, this depends upon the law of the state and the details of their personal automobile policy, but it is something that a thorough attorney will investigate and pursue if needed.
Credit Card Company Rental Car Insurance
When people rent a car, they will always use a credit card. In many instances, the credit card company offers a standard benefit that provides insurance coverage for the rental car. Again, there is no guarantee that such a policy exists with every rental car purchase. Also, there is no guarantee that a credit card company’s rental car insurance will provide benefits and coverage to injured people.
The Rental Car Company
Most people think that if they were injured by a negligent driver of a rental car, the rental car’s owner would also be liable and responsible for any injuries their driver caused. But this is not the case. A federal law passed by Congress in 2005, the Graves Amendment, made it impossible to file a lawsuit against a rental company merely for owning a vehicle that was involved in a crash caused by the driver’s negligence. This type of liability is called vicarious liability, meaning the vehicle owner is vicariously liable for the driver’s actions. The Graves Amendment ended that in the United States.
The Exception
If the injured person can demonstrate that the company’s negligence or actions contributed to those injuries, then the rental company can be held responsible. The type of negligence on the part of the rental company could be that it failed to properly train and supervise its employees in renting vehicles to qualified drivers.
Also, if the rental car company fails to maintain and inspect its vehicles properly, and it is proven that a vehicle malfunction caused the crash, the company could be held responsible.
Lastly, if the rental car employees rented a vehicle to someone they clearly should not have, the rental car company could be liable for their employees’ negligent actions.
Here are some potential ways that a rental car company employee could rent to the wrong person and be responsible for your injuries:
- The rental car company rented a vehicle to someone who was clearly intoxicated on either alcohol or drugs and let them drive off the lot in that condition. If the intoxicated driver then goes out and causes a crash, the rental car company could be responsible for the injuries that happened in the crash.
- The rental car employee rented a vehicle to someone whose license is revoked.
- The rental car company employee failed to review and verify the driver’s license information, and it turned out the driver either did not have a license or had a restricted license.
Rhoades & Morrow Represents Injured Victims in Rental Car Accidents
If you were seriously injured in an accident involving a rental car, our Delaware car accident lawyers have decades of experience and can help. We have office locations in Newark, Wilmington, Milford, and Lewes. With offices in all three counties, we serve clients throughout the state. Contact Rhoades & Morrow today to schedule a free consultation.
