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Curan & Ahlers

What to Do if You Damage a Rental Car Without Insurance


Damage a Rental Car Without Insurance

Rental Car Accident With No Insurance

When you’re not at fault in a car accident in a rental car, it can still be overwhelming, especially if you're suffering from injuries and navigating complex insurance issues. A lawyer experienced in rental car accident cases and injury claims can provide invaluable support by managing the legal intricacies, protecting your rights, and ensuring you are not unfairly held liable. They can work to secure compensation and help you understand coverage options. An experienced lawyer can alleviate the stress and help you focus on recovery while fighting for the best possible outcome in your case.  Choosing a knowledgeable lawyer to advocate for you and getting a better understanding of your case is a wise decision when you’ve experienced a car accident with a rental car. 


Immediate Steps to Take After Damaging a Rental Car in New York

To manage the situation and reduce hassles, take these immediate steps if  you’re in New York, and you get into a rental car accident and there are damages: 

  • Ensure Safety: Assess for injuries, move to a secure location, and, if needed, contact emergency services.

  • Document Damage: Take pictures of the surrounding area, any other cars involved, and any damage to the rental car.

  • Contact Rental Company: Notify the rental company right away for advice on what to do next and help if required.

  • File a Police Report: New York requires a police report be filed, if there are serious injuries, property damage, or another person is involved.

  • Exchange Information: Exchange contact and insurance information if another party is involved.

  • Notify Insurance: If your credit card company or auto insurance offers coverage, report it and initiate a claim.

  • Review Rental Agreement: Examine the rental agreement. for instructions about handling damages.


How to Review Your Rental Agreement for Damage and Liability Coverage

To review your rental agreement after a car accident in New York, locate damage and liability coverage sections. Look for terms on Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW). A collision damage waiver for a rental car will detail if the rental company covers damages. Confirm whether liability insurance was included, which protects against claims from other parties. Note deductibles, coverage limits, and exclusions that might affect your responsibility for repairs or costs. If you booked the rental car using your credit card, check if coverage is provided through your card, because this could supplement the rental company’s policy. Understanding these details will clarify your financial responsibility and potential claims.


What Financial Responsibility Do You Have Without Insurance?

If you have a rental car accident without insurance, in New York, your financial responsibility could be substantial. You may be liable for damages to the rental vehicle unless you purchased a Collision Damage Waiver or Loss Damage Waiver through the rental company. If you declined these, you could be responsible for the full cost of repairs or replacement. New York law requires rental companies to provide minimum liability coverage including $25,000 for bodily injury per person, $50,000 per accident, and $10,000 for property damage. However, in a serious accident, this may not cover all costs, leaving you responsible for any excess.


If you have no collision damage insurance for a rental car​, you probably also lack Personal Injury Protection (PIP), which is required in New York’s no-fault insurance system to cover medical expenses. Some credit cards offer rental car coverage, but this usually applies only to damages to the car, not third-party liability. 


Can Your Personal Auto Insurance Cover Rental Car Damage and Injuries?

Your personal auto insurance often covers rental car damage and injuries, depending on your policy. In most cases, if you have comprehensive and collision coverage, it will cover a rental car, and cover rental vehicle damages. Your liability coverage typically applies, covering injuries or property damage you may cause to others in an accident. But, there may be limitations. Personal policies often do not cover "loss of use" fees charged by the rental company while the car is repaired so you may have to pay for these. Check with your insurance provider for specifics on rental car coverage and exclusions.


When Should You Consider Legal Help for Rental Car Damage and Injury Claims?

Consider legal help for rental car damage and injury claims when disputes arise over liability, coverage, or compensation. If the rental company charges unexpected fees, like "loss of use" or administrative costs your insurance doesn’t cover, an attorney can clarify your financial responsibility. Legal assistance is helpful if injuries are involved and the at-fault party's insurance offers inadequate compensation, or if multiple parties are involved, creating a more complex claim. Consulting with a qualified lawyer can ensure you understand your rights, understand insurance policies, and pursue fair compensation.


What Happens if You Crash a Rental Car Without Insurance and Cause an Injury?

If damage to a rental car happens and you have no insurance and injuries occur, you may be held financially responsible for medical costs. New York law mandates rental companies provide minimum liability coverage, including $25,000 per person for bodily injury, $50,000 per accident, and $10,000 for property damage. However, these minimums may not fully cover expenses in a severe accident, leaving you liable for additional costs. Without personal auto insurance, you might also lack coverage for your own medical expenses. When severe injuries occur, costs of medical care and treatment can be expensive. If the accident involves significant injuries, consulting with a personal injury attorney can protect your rights and address potential financial obligations.


What Liability Waivers Are Available for Rental Cars in New York?

Several liability waivers and insurance options are available for rental cars in New York:

  • Collision Damage Waiver (CDW/LDW): Covers damage or theft of the rental car, shifting financial responsibility to the rental company. May have exclusions like tire or windshield damage.

  • Supplemental Liability Insurance (SLI): Adds liability coverage beyond state minimums, protecting you if you’re at fault for injury or property damage.

  • Personal Accident Insurance (PAI): Covers medical expenses for you and your passengers after an accident.

  • Personal Effects Coverage (PEC): Protects personal belongings from theft or damage while in the rental car.

  • Credit Card Coverage: Some credit cards cover rental car damage if you pay with the card and decline the rental company’s CDW. These typically exclude liability.


What to Expect from New York City Rental Car Agencies After an Accident

After a rental car accident in New York City, notify the rental agency promptly. They’ll guide you on the next steps, They’ll assess damages and, if you purchased a CDW or LDW, your financial responsibility may be reduced. If you have personal auto insurance or credit card coverage, they’ll coordinate with your insurer for claims. Without it, you may be liable for repair costs and loss-of-use charges. 


How to Negotiate Rental Car Damage Fees and Avoid Overcharges

To negotiate rental car damage fees and avoid overcharges after an accident in New York, review the rental company’s damage assessment and compare repair costs with local rates. If you have insurance or credit card coverage, involve them to reduce out-of-pocket costs. Question extra fees, like administrative or loss of use charges, and verify their necessity. Gather photos or inspection reports, to dispute pre-existing damage claims. 


Can You File an Insurance Claim for Rental Car Damage and Personal Injuries?

If you have personal auto insurance, your comprehensive or collision coverage may extend to rental car damage, and your liability coverage typically covers personal injuries to others. If you purchased a CDW or LDW from the rental company, it may cover the rental car damage. For injuries, your health insurance or auto insurance PIP may cover medical costs. If you used a credit card to pay for the rental, it might provide secondary coverage. Filing claims with your insurance or credit card company can reduce your financial responsibility for damage and injuries.


Where to Find Legal Resources for Rental Car Damage and Injury Claims in New York

Curan & Ahlers is the best place to find the legal resources you need for help with rental car damage and injury claims and cases in New York. We've been serving valued clients in car accident cases for the last 35 years and our attorneys are experienced in handling both rental car damage claims and injury claim cases. We have recovered millions in compensation awards for our clients. These types of cases can be confusing and overwhelming to cope with alone, and even more so if you are suffering from severe injuries. We’ll fight to get you the maximum compensation you deserve.


Can You Dispute a Damage Claim from a Rental Car Company?

A  damage claim from a rental car company can be disputed if you believe it is unfounded or excessive. Review the rental agreement and documentation related to the damage, including pre-existing issues noted at pickup. Photos or videos taken when you picked up and returned the vehicle can support your case by proving the damage was pre-existing or didn’t occur during use. If you bought rental insurance or used a credit card with coverage, your attorney can dispute the claim. If the rental company is uncooperative, a personal injury lawyer can help you protect your rights.


Can Legal Advice Help with Rental Car Damage and Injury Claims?

Early evaluation of your case by an experienced lawyer could mean the difference between a successful outcome with significant  compensation and a devastating loss. Given the intricacies of rental agreements, insurance coverage, and liability, legal counsel is extremely helpful when managing claims for damage to rental cars and injuries.  Lawyers can clarify these complexities to minimize out-of-pocket costs. They can ensure timely filing of injury or vehicle damage claims, establish liability if other parties are involved, and maximize compensation for medical expenses, lost wages, pain, and suffering. If the rental company or insurer is uncooperative, an attorney can strengthen your case and protect your rights.


Allow us to review your case and evidence at a free consultation with one of our skilled attorneys at Curan & Ahlers. We handle cases throughout New York and don’t charge any fees unless we win your case. Call us to schedule a complimentary appointment to discuss your rental car accident and injury case. 


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