Accidents involving rental vehicles are not uncommon throughout our area of Florida (or really anywhere throughout the state). Unfortunately, individuals harmed in a rental vehicle accident can struggle to recover compensation, even with the no-fault insurance system in place. Here, we want to review Florida rental car accidents, discuss some of the complications that arise concerning these claims, and look at the types of compensation that may be available.
Understanding Florida’s No-Fault Insurance System
Florida operates under a no-fault insurance process after a vehicle collision occurs, which means that after any car accident, including those involving rental cars, each driver’s insurance will cover their own medical expenses and lost wages, regardless of who caused the accident. This system is designed to provide quick compensation to injured parties without the need for determining fault.
While PIP insurance covers immediate medical costs and some lost income, it only covers up to $10,000, which may not be enough to compensate for more serious injuries. Victims whose injuries exceed this threshold or who suffer a serious injury (which is loosely defined by Florida law) may be able to pursue additional compensation from the at-fault driver.
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Insurance Options Available in a Rental Car Accident
In rental car accidents, determining which insurance policy applies can be complicated. Several types of insurance coverage may be available, depending on the circumstances of the accident and the insurance policies held by the driver. Here are the most common insurance options involved in rental car accidents:
The Rental Car Company’s Insurance
Most rental car companies in Florida offer optional insurance coverage to customers when they rent a vehicle. These options may include:
- Collision Damage Waiver (CDW). This is not technically insurance but waives the driver’s responsibility for damage to the rental vehicle. It can protect the renter from being liable for damage to the rental car in an accident.
- Liability Insurance Supplement. If the renter does not have personal auto insurance or if their insurance does not cover liability for rental cars, the rental company’s liability insurance may provide some coverage for bodily injuries and property damage to others.
- Personal Accident Insurance. This is an optional coverage that can help cover medical expenses for the renter and their passengers if they are injured in an accident.
Your Personal Auto Insurance
In many cases, a renter’s personal auto insurance policy will extend coverage to rental cars. If you have comprehensive or collision coverage on your personal vehicle, it may cover damage to the rental car in an accident. Similarly, your personal auto insurance may provide liability coverage if you happened to be at-fault in a rental car collision.
Credit Card Rental Insurance
Some credit cards offer rental vehicle insurance as a perk, but this coverage is usually secondary. It typically will only cover what your personal auto insurance or the rental company’s insurance does not.
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Complications in Rental Car Accident Claims
While there are multiple types of insurance that could apply to a rental car accident, navigating these claims can be complicated. Some of the most common complications include:
- Determining liability. Florida’s no-fault insurance system means that each driver’s PIP coverage will pay for their own injuries, regardless of fault. However, if the injuries are severe enough to meet Florida’s threshold for filing a personal injury lawsuit, determining who was at fault becomes critical for recovering additional compensation. In some cases, more than one party may be liable, such as the other driver, the rental car company, or even a vehicle manufacturer if a defect contributed to the accident.
- Dealing with multiple insurance companies. After a rental car accident, you may have to deal with multiple insurance carriers, including your own provider, the rental company’s insurer, and potentially the at-fault driver’s insurer. Each company may try to shift responsibility onto another, making it difficult to secure the compensation you need.
- Rental car agreements. Rental car contracts often include fine print that can change your ability to file a claim. For example, many rental agreements require you to report any accidents to the rental company within 24 hours, and failure to do so may void your coverage.
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Contact a Florida Rental Car Accident Attorney Today
If you or a loved one has been injured in a rental car accident, do not wait to seek legal assistance. At GOLDLAW, our experienced Florida rental car accident attorneys can help you navigate the legal process and recover the compensation you deserve.
Contact us today for a free consultation by filling out our contact form or calling (561) 222-2222 to speak with a Port St. Lucie car accident lawyers.
