What Happens if You Crash a Rental Car?
February 10, 2025
Renting a car can be super convenient, whether you're on vacation, traveling for work, or just need a set of wheels for a few days. But what happens if you crash a rental car? Accidents happen, and dealing with one in a rental can be confusing and stressful. Who pays for the damage? Does insurance cover it? And what if you don’t have insurance at all?
In this guide, we’ll break down exactly what to do if you crash a rental car, what costs you might be responsible for, and how to protect yourself from unexpected expenses.
What Happens if You Crash a Rental Car?
If you crash a rental car, the first thing to know is that you are responsible for reporting the accident and covering any damages, but how much you pay depends on your insurance coverage. Rental car companies have strict policies about handling accidents, and failing to follow the correct steps could make the situation worse.What Happens Right After the Accident?
- Check for injuries and call for help – Make sure everyone involved is okay. Call 911 if there are injuries. Even if no one appears hurt, it’s always a good idea to get a police report if there’s noticeable damage.
- Move to a safe location – If the car is drivable and it’s safe to do so, move it out of traffic to avoid further accidents.
- Exchange information – Get the name, contact information, driver’s license number, and insurance details from anyone else involved. Also, note the make, model, and license plate of all vehicles in the accident.
- Take photos and document the scene – Capture pictures of the damage, road conditions, street signs, and anything else that might be relevant such as weather conditions, wet roads, etc.
- Call the rental company – Most rental agreements require you to report any accident immediately. The company will explain the next steps, such as whether you need to return the vehicle or if they will tow it.
Who Pays for the Damage?
The costs you’ll face depend on what kind of coverage you have:- Rental Car Insurance – If you purchased a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) from the rental company, they may cover the damage. However, you could still be responsible for deductibles or certain exclusions, like reckless driving.
- Personal Auto Insurance – If your regular car insurance includes comprehensive and collision coverage, it may extend to rental cars. You’ll need to check your policy and understand what’s covered, including your deductible.
- Credit Card Coverage – Some credit cards provide rental car insurance if you paid for the rental with that card. This usually covers damage to the rental car but not liability for injuries or damage to other vehicles.
- No Insurance? – If you don’t have any coverage, you’re responsible for all repair costs, loss-of-use fees, towing, administrative fees, and liability claims.
What If the Rental Car Is Totaled?
When a rental car is deemed a total loss, it means the damage is so severe that the cost to repair it is higher than its actual value. In these cases, the rental company will not bother with repairs—they will instead charge you for the car’s full market value.Real-World Example: A Totaled Rental Car Could Cost You Thousands
Imagine you rent a 2023 Toyota Camry from Hertz, which typically costs around $30,000 brand new. You get into an accident that leaves the front end completely wrecked, deploying the airbags and damaging the engine. Since the cost of repairs exceeds the car’s value, the rental company declares it a total loss. If you declined the Loss Damage Waiver (LDW) and don’t have personal auto insurance that covers rentals, you would be on the hook for the full cost of the vehicle—which could be anywhere from $25,000 to $30,000, depending on depreciation. Now, let’s say you had purchased the LDW from Hertz when you rented the car. In that case, Hertz would likely cover the total loss, and you wouldn’t have to pay anything beyond any deductible or fees outlined in the rental agreement. This is why it’s crucial to either purchase rental car insurance or make sure your personal policy covers rentals—because if the worst happens, you could be facing a financial disaster.What If You’re at Fault?
If you’re the at-fault driver in a rental car accident, things get much more complicated. Not only are you responsible for repairing or replacing the rental car, but you may also have to cover damages to other vehicles, medical expenses, and even legal fees if someone sues you.Real-World Example: A Costly At-Fault Accident
Let’s say you’re driving a rental Nissan Altima from Enterprise, and you rear-end a luxury BMW in stop-and-go traffic. The BMW’s bumper, sensors, and trunk are damaged, with an estimated repair bill of $12,000. On top of that, the driver of the BMW has been injured and goes to hospital leading to a medical bill of $15,000Who Pays for What?
- If you have rental car insurance through the rental company, the damage to the Altima may be covered.
- If you have liability coverage through your personal auto insurance, it could cover the BMW’s repairs and the other driver’s medical bills.
- If you don’t have any coverage, you’re responsible for everything out of pocket—which could mean paying over $27,000 in damages and medical bills.
Why It’s Important to Know Your Coverage Before Renting
Even careful drivers make mistakes. If you’re at fault for an accident in a rental car and don’t have insurance, you could face crippling financial consequences. That’s why it’s always important to: ✔ Check if your personal auto insurance covers rentals ✔ Look into credit card rental coverage ✔ Consider purchasing the rental company’s LDW and liability insurance Skipping insurance might save you a little money at the rental counter, but if an accident happens, the costs could be devastating.What Happens if You Crash a Rental Car Without Insurance?
So, what happens if you crash a rental car without insurance? Crashing a rental car without any insurance coverage is one of the worst-case scenarios. If you don’t have a Collision Damage Waiver (CDW) from the rental company, personal auto insurance that covers rental cars, or credit card rental car insurance, then you’re responsible for all costs associated with the accident. Here’s a breakdown of what that could mean for you:1. You’ll Pay for All Repairs
Without insurance, you are personally responsible for fixing the rental car. That means if the car has a dented bumper, a cracked windshield, or more severe damage, the rental company will bill you for the full cost of repairs. Rental car companies don’t shop around for the best repair prices—they use their own mechanics or approved body shops, which tend to charge top dollar for parts and labor. This means you’ll likely pay much more than a standard repair shop would charge. If the rental car is deemed a total loss (too damaged to fix), you could be responsible for the car’s entire value. Since rental companies often replace their vehicles with new models, this amount could be tens of thousands of dollars—money that comes straight from your pocket if you don’t have coverage.Real-World Example: A Scraped Side Panel Costing Thousands
A man named Daniel rented a Chevy Malibu from Budget Rent a Car. While backing out of a tight parking space, he scraped the entire side of the car against a concrete post. Without insurance, Budget charged him $2,800 for repairs—an amount much higher than what a regular body shop would charge. Since rental companies use their own high-cost repair vendors, they don’t offer discounts or negotiate rates. If Daniel had purchased CDW from Budget, the damage would have been covered, and he wouldn’t have owed anything beyond the deductible (if applicable).2. Loss-of-Use Fees Will Be Added
Rental companies make money by keeping their cars on the road. If a car is damaged and sent in for repairs, they can’t rent it out—which means lost revenue for them. That’s where loss-of-use fees come in. These fees are calculated based on the car’s daily rental rate and how long it takes to repair. Even if the repairs only take a few days, you could be looking at an extra several hundred dollars just because the car was out of service. Some companies even charge a set number of days, regardless of how quickly repairs are completed, meaning you could be paying for weeks of lost revenue—even if the actual repair work only takes a few days.Real-World Example: A Fender Bender That Cost an Extra $800
Lisa rented a Toyota Corolla from Avis and got into a minor accident that dented the front bumper. The repair shop took five days to fix it, but Avis charged her for ten days of lost rental time—at a daily rate of $80 per day. In the end, Lisa had to pay $800 in loss-of-use fees, on top of the $2,000 repair bill. Some rental companies charge a flat loss-of-use fee, even if the car is repaired quickly, which can add up hundreds or even thousands of dollars to your total bill.3. Towing and Administrative Fees Will Be Added
If the rental car isn’t drivable, the rental company will arrange to have it towed to a repair facility. And guess what? You’ll be footing the bill. Towing costs vary depending on the accident location, but they can be extremely high, especially if the accident happens in a rural area or a highway where special towing services are needed. In addition, rental companies charge administrative fees to cover all the paperwork involved in handling the accident. These can include:- Accident processing fees
- Claim filing fees
- Damage evaluation fees
Real-World Example: A 30-Mile Tow That Cost $500
Carlos rented a Ford Mustang from Alamo. While driving on a highway in Arizona, he hit a deer, and the car was undrivable. Since he had no insurance, Alamo charged him $500 for towing—just to get the car off the road and into a repair facility.Administrative Fees on Top of Everything Else
Rental companies also charge administrative fees to handle accident claims and paperwork. These include:- Accident processing fees
- Claim filing fees
- Damage evaluation fees
Real-World Example: Hidden Fees That Added $300 to the Bill
After crashing a Hyundai Elantra rented from National, Jake received a final invoice that included an extra $300 in administrative fees—on top of his $4,500 repair bill. These fees aren’t covered by personal auto insurance, and rental companies rarely waive them.4. You Could Be Sued for Liability Costs
If the accident involves another driver, a pedestrian, or property damage, things get even more serious. Without insurance, you are personally responsible for covering damages to the other car or property, and you could also be liable for medical bills if someone was injured. Here’s what you might have to pay for out of pocket:- Repairs to another person’s car if you hit them
- Property damage costs if you hit a building, fence, street sign, or other structures
- Medical expenses for injuries to passengers, pedestrians, or another driver
- Legal fees if someone decides to sue you for damages
Real-World Example: A Minor Crash That Led to a Major Lawsuit
David rented a Jeep Grand Cherokee from Hertz. While making a left turn, he misjudged the distance and collided with a Honda Accord. The Accord’s driver filed a claim for neck and back injuries and sued David for $50,000 in medical bills and lost wages. Since David didn’t have insurance, he had to hire a lawyer, pay for his own legal fees, and settle the lawsuit out of pocket—a cost that could have been avoided with proper liability coverage.5. The Rental Company Could Take Legal Action
If you don’t have the money to cover the damages, the rental company will come after you. They may:- Send the bill to collections if you fail to pay
- Take you to court to recover the costs
- Report the unpaid debt to credit agencies, which can destroy your credit score
Real-World Example: A $15,000 Bill That Ruined Someone’s Credit
Michael rented a Honda Civic from Thrifty but crashed it on the second day of his trip. Since he had no insurance, Thrifty billed him $15,000 for repairs and fees. Unable to pay, Michael ignored the notices. Thrifty sent his bill to collections, and within a few months, his credit score dropped over 100 points. Later, the rental company took him to court, where a judge ordered him to pay the full amount plus legal fees.Why You Should Never Rent a Car Without Coverage
Crashing a rental car without insurance can leave you with an overwhelming financial burden. Even a minor accident could cost you thousands of dollars, and a more serious crash could wipe out your savings or lead to legal trouble. That’s why it’s always smart to make sure you’re covered before renting a car. Here are some simple ways to protect yourself:- Check your personal car insurance policy – Many policies do cover rental cars, but you need to verify what’s included.
- Use a credit card with rental coverage – Some credit cards offer free rental car insurance, which can save you a lot of money.
- Buy the rental company’s insurance – If you don’t have any other coverage, it’s worth paying a little extra for peace of mind.
- Look into travel insurance – Some policies include rental car coverage, especially if you’re traveling internationally.
Who Covers Medical Bills?
If you or someone else is hurt in the crash, medical bills can add up fast. Here’s how they might get covered:- Your personal car insurance (if you have medical coverage in your policy)
- The rental company’s optional insurance (if you bought their personal accident coverage)
- The at-fault driver’s insurance (if another driver caused the crash)
- Your health insurance (if other options don’t cover everything)
How to Protect Yourself Before Renting a Car
Before you hit the road in a rental car, take a few simple steps to protect yourself:- Buy rental car insurance if you don’t already have coverage.
- Check your personal auto policy to see if it includes rental cars.
- Look at your credit card perks to see if rental car coverage is included.
- Inspect the car before driving off and take photos of any pre-existing damage.
- Drive carefully to avoid accidents in the first place.
Final Thoughts: What Happens if You Crash a Rental Car?
Crashing a rental car is stressful, but knowing what to do can make the process a lot easier. The biggest factor in how much you’ll have to pay depends on your insurance coverage. If you’re covered through the rental company, your personal auto policy, or a credit card, you might not have to pay much. But if you crash a rental car without any coverage, you could end up with a hefty bill. If you’ve been in a rental car accident and need legal help, Casas Law, P.A. is here for you. Our experienced personal injury lawyers in West Palm Beach can help you deal with liability, insurance claims, and legal issues after a crash. Contact us today for a free consultation. This blog is for educational purposes only, and does not suffice for legal advice. Please contact our attorneys to learn more and to schedule your free consultation.
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