Who Pays for Damages in a Rental Car Collision?

Who pays for damages in a rental car collision depends on whose fault caused the crash, the renter’s personal auto policy, the rental company’s loss damage waiver, and any credit card coverage.

Responsibility can shift based on contract terms, excluded uses, and whether another driver’s liability insurance applies. A rental car accident lawyer in Los Angeles can review applicable policies and rental agreements to see which coverage pays first and where gaps remain.

California is an at-fault state, but seeking compensation after a rental car collision can prove challenging, especially when multiple parties are involved, such as the driver, rental company, or a third party. Attorneys assist rental car accident victims with filing claims or lawsuits. 

Who Pays for Damages in a Rental Car Collision Depends on Fault and Available Coverage

The at-fault driver’s liability insurance usually pays first for third-party damages, including injuries and the cost to repair the rental vehicle. Disputes can arise when more than one policy may apply.

At-Fault Driver’s Liability Policy

Pays for others’ injuries and property damage up to policy limits. If another motorist caused the crash, their insurer typically pays the rental’s repair costs and your injury claim.

Loss Damage Waiver (LDW) or Collision Damage Waiver (CDW)

If the renter is at fault, an accepted LDW/CDW can waive the rental company’s claim for physical damage, towing, storage, and often loss of use. Exclusions may void the waiver, such as unauthorized drivers, DUI, off-road use, or policy violations.

Renter’s Personal Auto Policy

If there is no applicable LDW/CDW policy, collision and comprehensive may cover the rental’s physical damage, subject to deductibles. If carried, uninsured/underinsured (UM/UIM) motorist coverage may apply when the other driver lacks adequate insurance.

Credit Card Collision Benefits

This coverage is often secondary to LDW and personal auto policies, but our lawyers can review all of your options for recovery. 

A car accident lawyer in Los Angeles can review the rental agreement, the renter’s policy, the at-fault driver’s coverage, and any credit card benefits to identify the primary payer, address exclusions, and minimize out-of-pocket costs. 

Damages in a Rental Car Collision

Damages for a rental car accident can include both economic and non-economic awards for immediate expenses and long-term consequences, including cases that involve disability. You may be able to claim the following damages:

• Medical bills: Your case may call for reimbursement for emergency treatment, hospital care, diagnostics, surgery, rehabilitation, therapy, prescriptions, medical devices, and projected future care supported by medical opinions.
• Pain and suffering: An attorney can seek damages for physical pain, emotional distress, anxiety, sleep disruption, and loss of enjoyment of daily activities and hobbies.
• Lost income: If your injuries caused you to miss work or suffer a loss of earning capacity, your claim can account for this.
• Reduced earning capacity: An attorney can present evidence of long-term limits on hours, duties, or career advancement that decrease future earnings compared to pre-crash potential.
• Disability: Temporary or permanent impairments that affect your mobility, cognition, or daily functioning can qualify you for awards.
• Wrongful death: An attorney can pursue damages for eligible family members that cover funeral costs, loss of financial support and household services, and loss of love, care, and companionship.

Every car accident case is unique, so your potential compensation depends on the specifics of your injuries and losses, the available insurance, and the evidence that ties those losses to the collision. A clear damages story links each category to the crash and supports a stronger claim.

A Lawyer Can Seek Damages in a Rental Car Collision Case 

A Los Angeles personal injury lawyer can review the rental agreement, any loss damage waiver, the renter’s auto policy, and credit card benefits to identify the primary payer and any exclusions. They also evaluate the at-fault driver’s liability coverage and confirm whether UM or UIM applies.

You don’t have to take on a negligent driver or a rental car company’s insurer alone. You have the right to hire legal representation in a rental car accident case.

Under Cal. Code Civ. Proc. § 335.1, you generally have two years to file a lawsuit. The sooner you reach out to a lawyer, the sooner they can get started on your case. 

We Can Determine Who Pays for Damages in Your Rental Car Collision Claim

At Vaziri Law LLP, we bring over 200 years of combined experience to car accident cases. We can determine who pays for damages in your rental car collision. Our attorneys can review the rental agreement and all available insurance, challenge improper charges, and present a clear, supported claim to pursue full compensation.

Contact us for a free consultation. We work on contingency, so you do not have to worry about paying anything up front for our services.