Car accidents can be stressful and complicated, but the situation becomes even more challenging when you’re driving a rental car and get hit by another vehicle. Many renters assume the rental company’s insurance will fully cover them, only to find themselves dealing with medical bills, liability concerns, and insurance disputes.
If you were injured while driving a rental car due to another driver’s negligence, knowing who is responsible for your damages and medical bills is critical. Understanding your legal rights, insurance coverage, and compensation options can help you avoid financial hardship and get the support you need.
Does Insurance Work Differently in a Rental Car Accident?
Car accidents in New Jersey and New York are handled according to the laws of the state where the accident occurred, not the state where the rental car was issued. Since both NJ and NY are no-fault states, your own insurance or the rental car’s policy will generally cover medical expenses first, regardless of who caused the accident.
However, liability for property damage and personal injury claims against the at-fault driver follows traditional negligence laws, meaning you may still be entitled to compensation from the responsible party’s insurance.
Who Pays for Medical Bills?
If you own a vehicle and have auto insurance in NJ or NY, your Personal Injury Protection (PIP) coverage will cover your medical expenses first, even though you were driving a rental car. PIP is a no-fault coverage, meaning it pays for your medical bills regardless of who was responsible for the accident.
If you do not own a personal vehicle and do not have auto insurance, the rental car company’s policy may provide PIP coverage if it was purchased at the time of rental. However, rental companies often provide limited or no PIP coverage, meaning you may have to rely on your health insurance or other sources.
In cases where your medical bills exceed PIP limits, you may be able to recover additional compensation through the at-fault driver’s liability insurance.
Who Pays for Vehicle Damage?
Since another driver caused the accident, their liability insurance is generally responsible for covering damage to the rental car. However, rental car companies often charge the renter upfront for damages and expect reimbursement later from the at-fault driver’s insurer. This means you might be responsible for covering repair costs, towing fees, and rental loss-of-use fees before getting reimbursed.
If you purchased a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) from the rental company, the waiver may cover some or all of the vehicle damage costs, preventing out-of-pocket expenses.
What If the At-Fault Driver Is Uninsured or Underinsured?
If the driver who hit you does not have enough insurance, you may need to file a claim under your own Uninsured/Underinsured Motorist (UM/UIM) coverage, if available. If you do not have personal auto insurance, the rental company’s coverage (if purchased) may provide limited protection, but often does not include UM/UIM benefits.
Many renters are surprised to learn that not all rental car insurance policies include uninsured motorist protection, making it essential to review the terms before an accident occurs.
Can You Sue the At-Fault Driver for Pain and Suffering?
If you were injured in the accident and suffered serious injuries, you may be able to pursue a personal injury claim against the at-fault driver for pain and suffering. However, in NJ and NY, your ability to sue depends on whether you have a verbal or full tort insurance policy and the severity of your injuries.
A successful claim may allow you to recover compensation for:
- Permanent injuries: Conditions resulting in lasting impairment or disability, meeting the serious injury threshold necessary for legal action.
- Pain and suffering: Physical and emotional distress caused by the injury, particularly pertinent in cases of permanent harm.
- Medical expenses exceeding PIP coverage: Costs surpassing the limits of your PIP insurance, which may be recoverable through a lawsuit.
- Lost wages: Income lost due to the inability to work during recovery, especially if the injury leads to long-term disability.
What Should You Do After a Rental Car Accident?
To protect yourself and maximize compensation, take these steps immediately after the accident:
- Call the police and report the accident. A police report is crucial for insurance claims.
- Document the scene by taking photos of vehicle damage, road conditions, and injuries.
- Get the other driver’s insurance and contact information.
- Notify the rental car company about the accident.
- Seek medical attention, even if injuries seem minor.
- Consult an attorney to understand your rights and legal options.
Protect Your Rights After a Rental Car Accident
Being hit while driving a rental car can lead to unexpected insurance disputes and financial challenges, especially if the at-fault driver is uninsured or their insurance company denies liability. Knowing who is responsible for your medical bills and car damages can help you navigate the legal process more effectively.
If you were injured in a rental car accident due to another driver’s negligence, it is essential to protect your rights and explore your legal options. Song Law Firm has extensive experience handling personal injury claims for rental car accidents in NJ and NY.
Call 201-461-0031 or email [email protected] today for a confidential consultation and get the legal guidance you need. Taking the right steps now can help secure the compensation you deserve.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For personalized assistance, contact Song Law Firm at 201-461-0031 or email [email protected].