Who’s Legally Liable After a Rental Car Accident in California?

If you’ve been in an accident involving a rental car, life is about to get very complicated. There are layers of insurance that can give multiple insurance companies the opportunity to try to shift the responsibility onto someone else. There are federal laws that shield rental car companies from liability in certain situations. Getting fair treatment in this situation can be challenging at best.

The basic premise in any car accident case is that the at-fault driver usually bears legal responsibility, and their insurance company is obligated to cover the losses. But the fight to determine which driver is truly “at-fault” can be an ugly battle if rental car companies are involved.

When you work with a personal injury lawyer who understands rental car accidents, you can turn the headaches over to your legal team so you can focus on healing and moving forward. At the Law Offices of Benjamin Arsenian, we understand how insurance companies and rental car operations work, and we know how to overcome the tactics they try to use to evade responsibility.

The Basic Rule: Liability Rests with the At-Fault Driver

While some states have no-fault insurance schemes that control most car accident cases, California is an “at-fault” state. That means whoever caused the accident has the legal responsibility for covering the damages that result.

The standard responsibility doesn’t change just because someone is driving a rented vehicle. If a driver operates irresponsibly by doing something such as:

• Looking at a text message while driving
• Tailgating
• Driving too fast for conditions
• Getting behind the wheel while under the influence of alcohol or drugs
• Running through a red light or stop sign

And if the irresponsible action leads to a collision, then that driver is liable for negligence. If the rental car company owns the vehicle that is being driven negligently, they do not assume liability vicariously. In fact, that concept is enshrined in a federal law known as the Graves Amendment (49 U.S.C. §30106).

A rental car company like Avis, Enterprise, or Hertz could be held responsible if they did something irresponsible that caused the accident, such as failing to inspect or repair the vehicle’s brakes. But the rental car company is not liable for all actions taken by the drivers who rent from them.

Which Insurance Company is Responsible for Paying for the Losses?

There are multiple layers of insurance that can be involved when a car accident involves a rental vehicle.

The Insurance Sold at the Rental Counter

When you pick up a rental car, the agent will try to sell you insurance. The agent doesn’t care what the insurance does—they just want to earn the commission on the sale. But if the at-fault driver has purchased the supplemental liability insurance, that can cover injuries and property damage with very high limits, often up to $1 million.

The Driver’s Personal Insurance

Most drivers have their personal auto insurance for their own vehicles. These policies frequently provide coverage when the driver is renting a vehicle, but it is important to review the terms of the policy to be certain. The limits are likely to be much lower than the coverage provided by a supplemental liability policy. In California, drivers are only required to have coverage to pay for $30,000 for injuries to an individual or $60,000 if more than one person is hurt.

Insurance Provided by the Credit Card Company

Cars are usually rented with a credit card, and credit card companies frequently offer rental car coverage. However, the fine print usually reveals that this is secondary coverage that doesn’t kick in until after the driver’s personal insurance or supplemental insurance has paid out. Moreover, the coverage often only extends to damage to the rental car and provides nothing toward the injuries resulting from the accident.

When is the Rental Car Company Directly Liable?

While the rental car company is not vicariously liable for the harm caused by someone driving one of the company’s vehicles, as owner of the vehicle, the car rental company can be liable if its actions directly caused the collision. For instance, if the company rented a car to someone who was visibly drunk or under the influence of drugs, the company could be liable for negligent entrustment. The company has a duty to rent only to responsible drivers, and if it breaches that duty, it can be held liable for the consequences.

A second common way that a rental car company could be directly liable for a collision is if the company failed in its obligation to provide a vehicle that is safe to operate. If the company did not follow reasonable guidelines for inspecting and maintaining their cars, or they knew a vehicle had a problem and did nothing to fix it, then the company could be held at fault. It takes diligent investigation to uncover evidence of this kind of negligence, so it is important to work with an attorney who is prepared to undertake the investigation.

FAQs About Rental Car Accidents

What should I do after a rental car crash?

Safety is paramount. Once you are out of danger, then it is a good idea to:

• Call 911 even if there appear to be no injuries. It is critical to get the police on the scene to make a report
• Use your phone to take photos of the vehicles, the accident scene, license plates, rental barcodes, witnesses, and injuries
• Get a thorough medical exam and make sure the doctor knows you were in a collision so they can check for signs of traumatic injuries, including internal bleeding and brain damage
• Report the collision to your insurance company and the rental car company but provide only basic information. Do not speculate about the cause until you have spoken to an attorney.

Do I need a lawyer after a rental car crash?

If you’ve been seriously injured in a way that caused you to miss work or suffer long-term effects, then a lawyer can help you obtain full compensation for all your losses. If you’re not sure that your injuries are serious enough for a lawyer’s assistance, you can schedule a free consultation and discuss the situation. 

How long should I wait to call a lawyer?

When you need legal assistance, it is best to get an attorney started on your case right away, so schedule a consultation soon rather than waiting.

The Law Offices of Benjamin Arsenian Helps Car Accident Victims Recover Maximum Damages

Car accidents involving rental cars can be very complicated legally. The extra insurance and potential corporate involvement means that there will be more defense lawyers trying to prevent accident victims from receiving appropriate damages for the harm they’ve suffered.

At the Law Offices of Benjamin Arsenian, we understand how to stand up to corporate legal teams and work effectively to obtain full compensation for your losses. To schedule a free consultation and case evaluation, just call us at 714-400-2000 or contact us online now.