The last thing people want to deal with after renting a car is an accident. You may be renting a car because your regular car was damaged in an accident. You may also be on vacation.

If this type of accident happens, there may be a few options for pursuing compensation for damages. The dedicated Bloomington car accident lawyers at TSR Injury Law are prepared to guide you through this process, if you have a valid claim and hire us to represent you.

Insurance Coverage for Rental Car Accidents

The first question is to determine what type of insurance coverage you have. You may be financially on the hook for damages caused to the rental car even if someone else caused the accident, based on the agreement that you made with the rental car company, so it is important that you try to identify what insurance policies may apply to your situation.

Minnesota law requires every auto insurance policy to provide of minimum $30,000 in liability coverage without a deductible for any property damage to a rental car. When a driver rents a vehicle in Minnesota, there must be a separate notice attached to the rental contract that notifies the driver of this coverage.

The notice must also state that a collision damage waiver or similar insurance is not necessary if the driver’s auto policy was issued in Minnesota. In fact, car rental companies cannot sell any collision damage waiver or other insurance on the rented vehicle unless the driver signs a document saying that he or she read and understands the notice.

If your damages exceed the Minnesota rental car coverage limit or you did not purchase an auto insurance policy in Minnesota, you may have other options for covering your auto accident damages.

Rental Car Company Insurance

You may be offered additional insurance coverage by the rental car company. Some insurance products that are frequently offered during this transaction include the following:

• Collision damage waiver – This type of coverage prevents you from being liable for any repair or replacement costs if you are in an accident or the vehicle is stolen. However, there are some exceptions.
• Liability coverage – This coverage pays for the property damage, injury and medical expenses that others incurred as a result of your negligence.
• Personal accident insurance – This type of insurance pays for the injuries you and your passengers sustained while in the rental vehicle.
• Personal effects coverage – This coverage pays for your personal belongings that are damaged during the accident in your rental car.

Your Car Insurance

Your own car insurance coverage may apply to damage that occurs while you are in a rental car. In some situations, your own coverage may overlap with what the rental car company is offering you. You might be required to provide proof of your insurance coverage from your own auto insurance policy if you decline coverage from the rental company.

Credit Card Company Insurance

If you rent the vehicle with a credit card, you might have insurance that automatically applies to your rental car.

Deductibles and Coverage Limits

Your insurance policy may have specific deductibles and coverage limits. It is important that you understand these terms in your policy.

The deductible is the amount that you pay out of pocket before the claim can be resolved. For example, if you have a $1,000 deductible, you would have to pay $1,000 before the insurance carrier would cover the rest of the loss. Even though Minnesota’s rental car coverage does not require a deductible, a deductible may apply to other aspects of your accident.

The insurance company will only pay up to the coverage limits of any insurance policy you have with it. You will be responsible for any damages that exceed the coverage limits.

When purchasing insurance for your rental car, be sure that you contact your own insurance company to determine the type of coverage you have already, the policy limits and the deductible.

Contact TSR Injury Law for Help

If you were involved in an accident in a rented car, the claims process may be complicated. The experienced attorneys at TSR Injury Law understand the many factors involved and have a track record of recovering fair compensation for car accident victims.

Our dedicated personal injury lawyers work diligently to secure maximum compensation to help victims move forward after an accident.

The consultation is free and there is no obligation so there is no risk to you. Call (612) TSR-TIME today.