What to Do After a Rental Car Accident in Michigan?

Whether you are visiting family or enjoying Michigan’s picturesque beach towns, the Great Lakes State has tons to offer visitors. However, if you plan to visit in the winter, snowy and icy roads increase your chances of getting into a car accident. From out-of-town drivers who are not used to the weather to local motorists who are far too cavalier about it, many factors can cause horrible accidents.

If you are in a Michigan car accident that someone else causes, you deserve fair compensation for your injuries. However, it can be difficult when the insurance agent tries to get out of paying your claim or tries to bully you into accepting an insufficient offer. Matz Injury Law is here to help you get the compensation you deserve in the event of a rental car accident. Whether you need guidance on Michigan laws because you are from out of state, are unfamiliar with rental car accident liability, or need someone to fight back against the insurance company, we are here to help.

What Happens if You Crash a Rental Car in Michigan?

Crashing a rental car is unexpected and can happen quickly. However, you can take a deep breath because even if you opt out of the rental company’s insurance policy, you are most likely still covered. After everyone involved sees a doctor and arrives home, you will have a couple of calls to make.

Who is at Fault for a Rental Car Accident?

Your car accident attorney can help determine fault based on the details of what caused the incident to occur. That allows us to determine whether rental car insurance, another driver’s insurance, or someone else should cover the costs. Here are some examples of the possible causes and at-fault parties:

• The vehicle breaks down: If the car rental company fails to maintain the vehicle and it breaks down, causing an accident, the rental company could be liable. Brake failure, tire blowouts, or engine trouble are some examples.
• Another driver causes the accident: If the police determine that the other driver in the accident caused it, then that party’s liability coverage pays for the losses you have.
• You caused the accident: If you caused the accident through negligence, your own insurance could cover your losses.

The rental care company could be held responsible in a variety of situations, such as:

• Poor maintenance
• Lack of education for the driver of known risks
• Providing the vehicle to someone unfit to drive (called negligent entrustment)

What Are Your Responsibilities Under the Rental Agreement?

When renting a car, you must understand your responsibilities as listed in the rental agreement. These agreements may differ from one organization to the next, but when you sign them, you agree to be held responsible for the contract details.

You must understand the rental company’s rules and Michigan’s laws. This may include:

• Reporting all accidents to the rental car company when they happen
• Understanding your responsibility for any damage to the vehicle
• Being aware of any exclusions from coverage provided by the rental car company

If you violate the contract terms you agree to, you could face potential fees and other penalties, as outlined in that document.

Whose Insurance Will Cover a Rental Car Accident?

One of the most common questions people have after an accident is which auto insurance policy will cover their injuries, property damage, or other losses. This is determined based on various factors, including the cause of the accident. When you meet with our personal injury lawyer, we can clarify your situation. Here are some guidelines to consider.

Personal Auto Insurance

Your personal auto insurance policy may cover your losses if it includes rental car coverage. This includes coverage for the rental vehicle if you caused the accident, as well as any liability claims against you.

The Rental Car Company’s Insurance

In some situations, the rental car company’s insurance covers losses. Most companies offer collision damage waivers (CDWs) or loss damage waivers (LDWs). These protect the rental car if you are in an accident. Some will include liability coverage if you cause injury to another person with the rental car. Let’s take a closer look at the coverage expectations.

Personal Accident Insurance

Personal accident insurance typically offers coverage for your medical expenses if you are hurt in a rental car accident. Personal Accident Insurance may cover your passengers as well. This policy, provided by the rental car company, will help to cover losses but does not include all accident injuries and related losses.

Supplemental Liability Coverage

Supplemental liability coverage provides additional coverage to existing auto insurance policies, covering more gaps to minimize out-of-pocket expenses. It may pay for medical expenses or property damage. If your car insurance policy does not cover a rental car, this policy adds that protection directly from the rental company.

Personal Effects Coverage

Personal effects coverage typically covers personal belongings in the rental car that are damaged in a car accident. It may also cover theft.

Loss Damage Waiver (LDW)

When you add a loss damage waiver (LDW) to your car rental agreement, following the terms and conditions of that agreement will waive your financial responsibility for any damage to the rental vehicle. If not, know that there are other options available to you.

Your and your passengers’ health and safety are the main priority. Once these are attended to, it will be time to make that call and file the all-important insurance claim to start the repair process. Take the time to review all insurance information, including your insurance company policy and the rental contract itself, so that you do not feel left out and can avoid any surprises.

The At-Fault Driver

When another person causes the accident, the at-fault driver’s insurance covers your losses. Insurance claims against the at-fault driver’s liability insurance typically account for all losses, including medical bills, property damage, and pain and suffering.

Credit Card Rental Insurance

If you have a credit card that offers coverage as a car renter, the policy will cover your losses after a rental car crash. This type of rental coverage may have limitations imposed by the credit card company issuing the policy.

Can You Receive Compensation After an Accident in a Rental Vehicle?

In most cases, you should be able to receive coverage and possibly even compensation after your rental car accident. Weigh your options and consider talking with a lawyer experienced in car accidents and insurance law to feel more confident about your options.

Scenario 1: You Crashed a Rental Car and Opted for Coverage

While driving through the downtown area of a highly populated Michigan city, another driver runs a red light and crashes into your rental car, resulting in significant damage.

Fortunately, you opted for comprehensive coverage with the rental agency, including collision damage waiver (CDW) and liability insurance. Since the accident was not your fault, you will not be held liable for the damages. The car rental company will take responsibility for covering the cost of repairs to the rental car, including towing and storage fees.

With this in mind, you notify the rental company’s emergency number immediately after the accident, and they guide you through the claims process, providing necessary documentation and arranging for a replacement vehicle.

While the rental car is in the shop for repairs, you are provided with a comparable replacement vehicle at no additional charge, allowing your trip to continue uninterrupted.

After a few days, the rental car is repaired, and you return the replacement vehicle. The rental company informs you that there are no additional charges or fees for the accident.

What Happens if You Declined the Rental Agency’s Insurance?

It is not uncommon for some people to decide not to obtain rental insurance from the rental agency. You do not have to accept this, but when you don’t, it is critical to know what happens to your responsibilities in those situations.

Any damages that occur may fall on the shoulders of other car insurance coverage you have, such as:

• Personal auto insurance, such as your collision coverage, if you strike something
• Credit card coverage—if you have a credit card that has specific rental car insurance coverage
• A third-party rental car insurance provider if you do not want to buy directly from the rental agency

You do not have to have a rental insurance policy, as most personal auto insurance provides sufficient coverage. However, in the event of exclusions or limitations, you could be paying out-of-pocket for expenses. You also must meet deductible payments before your insurance kicks in to cover your losses.

Scenario 2: You Crash a Rental Car, and Your Original Insurance Covers the Accident

While driving a rental car, you accidentally slam into the back of another vehicle at a stop sign, damaging both cars. Having declined the rental company’s insurance coverage, you rely solely on your car insurance policy and its rental coverage to take care of the damages. As the at-fault party, however, you may be responsible for covering the deductible and any expenses beyond your policy limits.

As you would with your vehicle, you promptly report the accident to your auto insurance company, which initiates the claims process.

At this point, you understand that your insurance covers the cost of repairs to both vehicles up to the limits specified in your policy. However, you are still responsible for paying the deductible out of pocket.

Will You Have to Pay For a Replacement Vehicle?

While the rental car is being repaired, you may also need to pay for a replacement vehicle or alternate transportation.

Once the repairs are complete, you return the rental car, and the rental company assesses any additional charges, such as loss of use or administrative fees.

In this scenario, not opting for the rental company’s insurance coverage and being at fault for the accident means relying solely on your personal auto insurance policy. While your insurance coverage provides financial protection, you may still face out-of-pocket expenses such as deductibles and potential increases in insurance premiums.

Understanding your insurance policy and promptly reporting accidents are crucial steps in managing the aftermath of a rental car accident.

Scenario 3: You Crash a Rental Car, and Your Credit Card Covers Rental Car Insurance

Did you know that having coverage through your credit card can provide a safety net? Below is a hypothetical scenario to help you understand how this situation might unfold.

While navigating through Michigan’s scenic routes, you find yourself involved in a collision with another vehicle, causing damage to the rental car you are driving. Fortunately, you opted to pay for the rental car using one of your credit cards, which includes rental car insurance coverage as a benefit. This coverage will kick in, protecting the damages to the rental car, and consists of both collision damage waiver (CDW) and liability insurance.

Are You Required to Pay for Rental Vehicle Damage After an Accident?

Since the accident wasn’t your fault, you are not held liable for the damages, and your credit card’s insurance coverage handles the entire claim process.

You immediately notify your credit card company about the accident, and they guide you through the necessary steps to file a claim. They will cover the cost of repairs to the rental car, sparing you from out-of-pocket expenses.

Rental Vehicle Protection Through Credit Cards Covers Replacement Vehicle

During the repair period, the rental company may provide you with a replacement vehicle at no additional cost, helping you continue your travel plans without delay.

Once the rental car is repaired, you return it to the rental company, and no additional charges or fees are assessed.

In this scenario, having rental car insurance coverage through your credit card proves invaluable. It offers financial protection and peace of mind during a stressful situation.

By understanding the benefits provided by your credit card and promptly contacting them after an accident, you, as the renter, can navigate through the aftermath of a rental car accident with minimal hassle.

What to Do After an Accident Involving a Rental Car

Following a rental car accident, treat it as if it were your own vehicle. The only difference will be who you contact first. Depending on the type of coverage you choose when initiating the rental, you must contact either the rental car agency, your own car insurance company, or your credit card company.

How Can a Car Accident Lawyer Help You After a Rental Vehicle Accident?

Once you hire a car accident attorney and establish an attorney-client relationship, you gain the advocacy and support of an experienced legal representative working solely for you. Your attorney can help you with a wide range of resources, provide legal advice, and help navigate:

• Creating an insurance claim
• Negotiating with the rental car company
• Pursuing compensation for personal injury or property damage reimbursement

When you set up a free case evaluation, you will also learn if the insurance company is providing fair protection to you or not. This free consultation allows you to get more information about your rights.

Why Clients Choose Matz Injury Law

Matz Injury Law has been serving Michigan clients for decades, earning over $300 million on their behalf. Each case is handled by one of our partners directly, so you never feel left out or relegated to a lower associate. Our law firm is dedicated to personal injury victims, and we strive for a preferable outcome for each case.

Testimonials

“For anyone looking for an attorney, please look no further than Matz Injury Law. Not only was Jared professional, he helped me beyond what I could have asked for. I’m so thankful for you all!!! To say I’m appreciative and grateful is an understatement. There’s no need to look for any other attorneys for you auto accidents!! They are so wonderful!!! Highly recommend 10/10!!!!!” – Tessa C.

“Following a near head-on collision that left my wife with serious injuries to her leg and a head injury from the airbag that caused “instant onset dementia,” she has been deteriorating and needs constant supervision. Hats off to Steve Matz and all the work he and his firm have done to secure the compensation needed from the insurance company to facilitate her care. Without his tireless help, I don’t know where we would be today. I highly recommend Matz Injury Law and, if needed, would definitely utilize the firm again.” – Thomas C.

“Steve Matz is wonderful. He’s brilliant and dedicated. He will fight for you and keep you informed the entire way. Completely trustworthy. I recommend him to all seeking legal help.” – Linda B.

Related Resources

• How Long Does A Car Accident Settlement Take?: From creating a police report about an accident to receiving a payment for your losses, various factors affect a car accident settlement timeline. Here’s what to expect.
• What You Need to File A Police Report After A Car Accident: If you were in an accident, you may need to file a police report to document the incident. Here’s what you must bring, including contact information, such as a phone number for you and other parties, and details of what occurred.
• Deadlines for Filing Car Accident Lawsuits in Michigan: Knowing how long you have to take legal action is essential. Read more about filing a claim and why waiting can be devastating financially.
• 2024 Guide to Michigan Car Accident Lawsuits: Michigan’s personal injury protection (PIP) complexity makes lawsuits more complex. Here is what you need to know.

Matz Injury Law: Rental Car Accident Lawyers Who Care

Call the dependable car accident attorneys at Matz Injury Law if you are in a rental car accident. We have won millions of dollars for our Michigan clients over the years and will fight tenaciously for your right to fair compensation. Call us at 1-866-22Not33 or use our online contact form for a free consultation today. There’s no disclaimer and no obligation. We are ready to fight for you.