What to Do If You’re in an Accident Driving a Rental Car

The Three Sources of Coverage in a Rental Car Crash

1. Rental Company Insurance Options

When you pick up a rental car, the company typically offers several coverage add-ons. These are not “insurance” in the traditional sense — they are contractual agreements between you and the rental company, but they function like insurance:

• Collision Damage Waiver (CDW) / Loss Damage Waiver (LDW) — The rental company agrees not to hold you responsible for damage to the vehicle, up to the limits specified. This is typically the most important product to understand. If you have your own comprehensive and collision coverage, CDW/LDW may be duplicative. If you don’t, it’s critical.
• Supplemental Liability Protection (SLP) — Provides additional liability coverage above the rental company’s baseline. If you cause a crash and injure someone, SLP pays toward their damages up to the policy limit (often $1 million).
• Personal Accident Insurance (PAI) — Covers the driver and passengers for medical costs and accidental death from a crash. This is often duplicative if you have health insurance and life insurance, but fills a gap for travelers who don’t.

2. Your Personal Auto Insurance Policy

Most personal auto insurance policies in Kentucky extend to rental vehicles when you are renting for personal use — meaning your liability coverage, collision coverage, and comprehensive coverage all apply to the rental car the same way they apply to your own vehicle. Key things to verify with your insurer before renting:

• Does your policy extend to rental vehicles for personal use?
• Does it cover loss of use charges — what the rental company charges per day while the vehicle is being repaired?
• Does it cover “diminishment of value” charges — what some rental companies charge if they claim the vehicle is worth less after being repaired?

Under Kentucky’s choice no-fault system, KRS 304.39-060, your PIP coverage from your personal auto policy typically extends to a rental car you are driving. That means first-party medical benefits up to $10,000 are available from your own insurer regardless of who caused the crash — the same as with your own vehicle.

3. Credit Card Coverage

Many major credit cards offer secondary collision damage coverage for rental cars when you pay for the rental with that card. This coverage typically:

• Is secondary to your personal auto policy — it only pays what your personal policy doesn’t cover
• Covers collision damage to the rental vehicle, not your liability to third parties
• Does not cover personal injury
• Excludes certain vehicle types (trucks, luxury vehicles, exotics)
• Requires that you declined the rental company’s CDW/LDW to be triggered

Some premium travel credit cards offer primary coverage — meaning they pay first, before your personal auto policy. Verify your card’s exact terms before renting.

What Happens When You Caused the Crash in a Rental

If you caused the crash — or share fault for it — the priority of coverage matters for paying for the other party’s damages:

1. Supplemental Liability Protection (SLP) from the rental company, if you purchased it, typically pays first
2. Your personal auto liability coverage pays up to your policy limits if SLP is not purchased or is exhausted
3. The rental company’s base liability coverage — under the Graves Amendment (49 U.S.C. § 30106), rental companies are not vicariously liable for the negligence of their renters, but most states require rental companies to provide minimum liability coverage. In Kentucky, that minimum is $25,000 per person / $50,000 per accident under KRS 304.39-110.

Rental Car Crashes Involving Uninsured Drivers

If you were hit by an uninsured driver while in a rental car, your options are:

• UM/UIM coverage on your personal auto policy — most personal auto policies’ uninsured motorist coverage extends to you while you are driving a rental car for personal use
• SLP from the rental company — some rental company SLP products include uninsured motorist protection for the renter
• Your own health insurance — for medical bills not covered by the above

For more on how Kentucky’s uninsured motorist coverage works and the importance of UM/UIM stacking, see our page on UM/UIM stacking in Kentucky. For more on what happens when insurance takes too long to pay, see our page on insurance payment delays.

Step-by-Step: What to Do After a Rental Car Crash

1. Call 911 — Get a police report. You will need it for every insurance claim.
2. Notify the rental company — Most rental agreements require you to report any accident immediately. Failure to notify can void your CDW/LDW coverage.
3. Document everything — Photos of both vehicles, the other driver’s license and insurance, the police report number.
4. Do not admit fault — Even a casual apology can be used against you in insurance negotiations.
5. Contact your personal auto insurer — Report the crash and confirm your coverage for the rental.
6. Contact your credit card company — If applicable, report the claim within the card’s required timeframe (often 45 days).
7. Get medical attention the same day — Rental car crash injuries are subject to the same documentation requirements as any other crash injury.
8. Contact an attorney if you were injured — Managing claims against the at-fault driver, the rental company, and multiple insurers simultaneously is where early legal involvement pays off.

For more on Kentucky car accident claims generally, see our car accident practice area page. For what to do with recorded statements and insurance contacts, see our page on insurance recorded statements.