Rental Car Accident? Here’s What to Do Next

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Vacations can be stressful no matter what; add a car accident in, and your stress level will skyrocket even higher. However, if you are prepared, you can help alleviate the stress of an accident. Follow these tips if you ever get into a car accident with a rental car. 

1. Ensure Safety First

Like any accident, the first thing you need to do is ensure everyone’s safety. Check yourself, your passengers, and the other vehicle’s passengers for injuries. Move to a safe location while you make the calls and assess damage.

2. Notify the Authorities

Call emergency services. When renting a car, you should always make a note of the local emergency services number, which you can find listed here. Filing a police report is key whenever you are in an accident, even if you think it is minor. Request a copy of the police report for insurance and rental company documentation. 

3. Gather Contact Information

If another car is involved, get the other parties’ contact information. The information you should obtain includes:

Name
Address
Phone number and email address
Insurance company and policy number
Driver’s license number, vehicle registration and license plate for each vehicle

If the other party seems angry, you should wait until authorities arrive before obtaining the pertinent information. You can ask the police to get the information for you when they arrive. 

4. Document the Scene

Having evidence of the cars immediately after the accident is essential for insurance purposes. Take photos of the accident (damage, license plates, road signs, etc.) Gather any witness contact information and exchange details with other drivers. You should NEVER admit fault after an accident. 

Document the following: 

• The damage to all vehicles involved (close-ups and wide shots).
• License plates of all vehicles.
• The accident scene (skid marks, traffic lights, street signs).
• Any visible injuries.

 Write Down Key Details:

• Time and location of the accident.
• Weather and road conditions (wet roads, low visibility, etc.).

5. Contact the Rental Car Company

Call the rental agency’s emergency line, which is often listed on the rental agreement or keychain. Explain the situation to them and follow their instructions. The customer service representative will explain the next steps for replacing the car and what to do with the damaged car. If the vehicle is driveable, they will likely have you bring it back to the rental company. You must determine the policy and what to do next if it is not driveable. If the car has to be towed, ask if the company has a preferred spot for the vehicle to be towed to. 

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Questions to ask when you call include: 

• What are my next steps? (Do I need to bring the car in? Will they send a tow truck? Where should the car get towed?)
• Do I need to fill out any paperwork?
• Can I get a replacement car? (Especially if your rental is now undriveable.)

6. Understand Your Insurance Coverage

When you signed your rental agreement, you would have chosen some type of coverage, or you might get car rental insurance through your credit card. The types of insurance you have may include: 

Insurance Through the Car Rental Company

If you signed a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW), you likely won’t have to pay for any damage. If you declined it or don’t have that coverage with your credit card or elsewhere, you likely will have to pay out of pocket for any damages.

Credit Card Rental Insurance

Many credit cards offer rental car insurance as a perk if you pay for the rental with the card. Coverage is usually secondary, meaning it kicks in after your personal auto insurance. Still, some premium cards provide primary coverage (meaning you don’t have to involve your auto insurance).

Personal Auto Insurance

If you own a car, your car insurance policy may cover any damage from a rental car, but you’d have to check your policy. 

Travel Insurance

Many travel insurance policies also have car rental damage coverage, but it varies from policy to policy. 
Check out our comprehensive guide for picking the right car rental coverage here.

Understanding Deductibles and Out-of-Pocket Costs

• Deductibles: Most rental company insurance, credit card coverage, and travel insurance policies have a deductible (the amount you must pay before coverage applies). This can range from $0 to $1,500.
• Loss-of-Use Fees: Rental companies may charge you for lost revenue while the damaged car is being repaired. Some insurance policies and credit card coverage do not cover these fees.
• Administrative Fees: Rental agencies may add processing fees on top of repair costs.
• Diminished Value Charges: Some companies charge for the reduced resale value of a damaged vehicle, even after repairs.

7. Follow Up and Resolve Any Claims

Keep copies of all documents, receipts, and any communication with the rental company. If you feel the rental agency overcharges you for damages, ask them for a detailed breakdown of the charges and request proof of the work that was done on the car. When speaking to rental car representatives, be sure to emphasize the fact that you have evidence of all damage and documentation. Call your credit card company to dispute the charge if they don’t budge. If none of these steps work, you can always try legal action, but that is costly and may not be worth it, depending on the charges. 

Bottom Line

The most important thing you can do before driving off the lot with your rental car is make sure you know what type of car rental insurance you have. Do this before you set off on your trip. Follow our guide to find the right car rental insurance for you.

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