The Surprising Ways Rental Car Insurance Can Fail You After An Accident

Renting a car while on vacation or for a temporary need might seem simple—until you’re involved in an accident. Many drivers assume they’re covered, whether through rental car insurance or their personal auto policy. Unfortunately, this assumption can be costly.

At Mickey Keenan P.A., we’ve seen firsthand how rental car insurance can leave drivers vulnerable to financial and legal stress after a crash. Here’s what you need to know to protect yourself before—and after—an accident.

Why Rental Car Insurance Isn’t Always Enough

Rental car companies offer supplemental insurance at the counter, but that doesn’t mean you’re fully covered. These policies often include:

Collision Damage Waiver (CDW) – Covers damage to the rental vehicle, but not necessarily other vehicles or property.
Liability Coverage – May be minimal or optional, covering only a fraction of what you’d owe if found at fault.
Personal Accident Insurance – Pays for limited medical costs but might duplicate your health insurance.
Personal Effects Coverage – Covers stolen belongings but with strict limits and exclusions.

Many renters don’t realize that:

CDWs often exclude certain types of damage, like tire blowouts or undercarriage issues.
You might be liable for “loss of use” fees if the rental company can’t rent out the car while it’s being repaired.
You could be denied coverage if the accident involves unauthorized drivers or off-road use.

Bottom line? Rental insurance is not a blanket safety net.

Who Pays For Damage In A Rental Car Crash?

Depending on your situation, several parties may be responsible for covering costs:

Your Personal Auto Insurance – If you carry full coverage, your policy may extend to rentals. However, your deductible still applies, and your rates may go up.
Credit Card Rental Coverage – Some credit cards offer secondary rental car coverage, but only if you decline the CDW. It usually excludes liability and doesn’t cover injury to others.
The Rental Company’s Insurance – If you purchased their coverage, it may kick in—but only within the policy’s strict limitations.
Another Driver’s Insurance – If you were not at fault, their insurance may cover your losses. Still, disputes about fault often delay this process.

It’s essential to review your policies and confirm coverage before renting a vehicle.

Steps To Take If You’re In An Accident With A Rental Car

Ensure Everyone’s Safety
Move to a safe location, check for injuries, and call 911 if necessary.
Contact the Rental Company Immediately
They’ll walk you through what to do next and may provide roadside assistance or alternate transportation.
Take Photos and Gather Evidence
Just like any other accident, document the scene, vehicle damage, license plates, and insurance cards.
File a Police Report
Even if it’s not legally required, a report provides an official record and can protect you from false claims.
Notify Your Insurance and Credit Card Company
Prompt notification ensures you don’t miss a filing deadline for coverage.
Request a Copy of the Rental Agreement
This helps clarify what coverage was included and whether any exclusions might apply.
Contact a Personal Injury Attorney
If someone was injured or fault is unclear, legal advice can help protect your rights and minimize financial fallout.

At Mickey Keenan, P.A., we’ve helped many clients navigate confusing insurance claims after rental car accidents in Florida.

Common Scenarios Where Coverage Fails

You Didn’t List All Drivers on the Rental Agreement
If someone else crashes the car and isn’t listed, coverage may be denied.
You Used the Vehicle Off-Pavement or for Business
Most policies exclude off-road driving and commercial use.
You Declined Supplemental Insurance Without Verifying Coverage
Many renters unknowingly go without liability protection when they assume their credit card or personal policy is enough.
You Missed a Claim Deadline
Some rental insurers require claims to be filed within 24–48 hours—delays can void coverage.
You’re Held Liable for Diminished Value
Even if the car is repaired, the rental company may charge for loss in resale value.

Tips To Protect Yourself Before You Rent

Preparation is key. Before you even drive off the lot, make sure to:

Review your personal auto insurance policy to understand coverage limits.
Call your credit card provider to confirm what’s included (and excluded) in their rental coverage.
Thoroughly read the rental agreement’s fine print, especially sections related to damage, liability, and exclusions.
Consider purchasing Supplemental Liability Insurance if you aren’t fully protected by your own policy.
Keep all receipts, documentation, and written communication in case of a dispute.

What Happens If You’re Injured In A Rental Car Accident?

If you or a passenger is injured in a rental car accident, your situation becomes even more complicated. You may have to deal with:

Delayed or denied medical claims
Conflicting insurance policies between multiple parties
Coverage gaps if neither the rental insurance nor your personal insurance applies
Out-of-pocket medical expenses while fault is still being determined

In these situations, working with our Tampa, FL car accident lawyer is your best course of action. We help you coordinate claims, understand how medical bills will be handled, and fight for the maximum compensation you deserve.

Final Thoughts: Know Before You Go

Renting a car doesn’t have to be risky. The key is knowing what coverage you have, where the gaps are, and what to do in case something goes wrong.

If you’ve been involved in a rental car accident and aren’t sure where to turn, our team at Mickey Keenan P.A. is here to help. We’ll review your case, explain your rights, and guide you through the next steps—so you can focus on recovery, not red tape.

Renting a car shouldn’t mean risking your financial future. Let us help you drive forward with confidence.