You pick up a rental car at Huntsville International Airport, or maybe you’re driving one while your own vehicle is in the shop. Then another driver hits you. Suddenly, you’re dealing with injuries, a damaged rental car, and questions about whose insurance will pay.

A rental car accident can be confusing because several insurance policies may be involved. You may be wondering who pays your medical bills, if the rental company is responsible, and what happens when the other driver doesn’t have enough insurance.

Here’s what you need to know about handling a rental car accident in Alabama, from the first steps at the scene to understanding your legal rights.

What to Do After a Rental Car Accident

After a crash, take these steps to protect your health and document what happened:

  • Check for injuries and call 911. Request police and medical assistance if needed. Ask how to obtain a copy of the accident report.
  • Exchange information. Get the other driver’s name, contact details, license plate number, and insurance information.
  • Take photographs. Document vehicle damage, road conditions, traffic signs, and anything else that may help show how the crash happened.
  • Identify the rental vehicle. Photograph its license plate, barcode, fleet sticker, and rental agreement information.
  • Notify the rental company. Report the accident within the time required by your rental agreement.
  • Get medical attention. Even if you feel fine, consider seeing a medical professional. Some injuries, including whiplash, may not become noticeable until hours or days later.

Be cautious when speaking with insurance adjusters. You don’t have to give a recorded statement to the other driver’s insurer. Consider getting legal advice before agreeing to one.

Whose Insurance Pays After a Rental Car Crash?

Alabama is a fault-based insurance state, meaning the driver who caused the crash may be liable for the injuries and damage. However, rental accidents can involve several types of coverage.

The Driver’s Personal Auto Insurance

Your personal auto insurance may cover a rental car, depending on your policy. If another driver caused the crash, their liability insurance may cover your injuries and other losses.

Rental Company Insurance Options

Rental companies commonly offer additional protection when you pick up a vehicle.

Coverage What It Covers
Collision or Loss Damage Waiver (CDW/LDW) Reduces or eliminates your responsibility for certain damage to the rental vehicle, subject to the agreement.
Supplemental Liability Insurance Provides additional liability protection if you cause injuries or property damage to someone else.
Personal Accident Insurance May pay certain medical or accidental death benefits for covered occupants.

Each option covers different costs. For example, a damage waiver doesn’t cover another driver’s medical bills.

Credit Card Rental Coverage

Some credit cards offer rental vehicle protection when you use the card to pay for the rental and meet the card’s requirements.

Credit card rental coverage generally applies to damage or theft involving the rental vehicle. It may be primary or secondary, depending on the card, and typically doesn’t cover injuries or damage to other people.

Uninsured and Underinsured Motorist Coverage

What happens if the driver who caused the crash doesn’t have insurance or enough coverage to pay for your injuries? Your uninsured/underinsured motorist (UM/UIM) coverage may help cover those losses, depending on your policy. In Alabama, insurers must include this coverage in auto liability policies unless the policyholder rejects it in writing.

This protection is important because Alabama’s minimum liability limits are:

  • $25,000 for bodily injury to one person
  • $50,000 for bodily injuries to multiple people in one accident
  • $25,000 for property damage per accident

Medical bills from a serious crash can quickly exceed these limits. Reviewing all available insurance policies can help you clarify what coverage applies.

Can You Sue the Rental Car Company? Understanding the Graves Amendment

The Graves Amendment, 49 U.S.C. § 30106, protects rental companies from liability simply because they own a vehicle involved in a crash, provided they were not independently negligent or involved in criminal wrongdoing.

A rental company may still be responsible in certain situations, including:

  • Negligent Maintenance: The company failed to address a known vehicle defect, such as faulty brakes, that contributed to the crash.
  • Negligent Entrustment: The rental company rented a vehicle to someone it knew or should have known was unfit to drive, such as a visibly impaired driver, and that contributed to the crash.

These claims are difficult to prove. Simply showing that the rental company owned the vehicle isn’t enough.

How Alabama’s Fault Rules Affect a Rental Car Claim

Most states allow injured people to receive some compensation even if they were partly responsible for an accident. Alabama follows a stricter rule.

Under contributory negligence, an injured person whose own negligence contributed to the accident may be barred from recovering compensation, even if they were only 1% responsible.

For example, if another driver runs a red light and hits your rental car, their insurer might argue that you were speeding. If your speeding contributed to the crash, you could be barred from recovering compensation.

Because insurers may try to place some of the blame on you, photographs, witness statements, police reports, and other evidence can help you challenge unfair fault claims.

How the Rental Agreement Can Affect Liability

The rental agreement you signed may also affect what happens after a crash. For example, rental contracts commonly restrict certain activities, including:

  • Allowing an unauthorized driver to operate the vehicle
  • Driving while impaired
  • Using the vehicle off-road or for prohibited purposes
  • Using the vehicle for illegal activities

Violating these terms may affect coverage purchased through the rental company or leave you responsible for additional charges. However, it doesn’t automatically eliminate every applicable insurance policy.

Rental companies may also charge loss-of-use fees when a damaged vehicle is unavailable to rent, along with accident-related administrative fees. Your insurance or credit card benefits may or may not cover those costs.

Review the agreement’s accident reporting requirements. Missing a deadline could complicate your coverage or lead to a dispute with the rental company.

Talk to Tyler Mann Injury Law About Your Rental Car Accident

A rental car accident can involve several insurance policies and complicated liability questions. We can help you understand your options.

At Tyler Mann Injury Law, we provide personal attention to injured people throughout Huntsville and North Alabama. As a former insurance adjuster, Tyler Mann understands how insurance companies evaluate claims. Our Huntsville car accident lawyers can review what happened, assess available coverage, and help determine whether you may be entitled to compensation.

Alabama gives injured people two years to file a personal injury lawsuit, although exceptions may apply. Acting early can help preserve important evidence.

With our No Fee Guarantee®, you pay no attorney fee unless we recover money for you.

If you have questions after a rental car crash, contact Tyler Mann Injury Law for a free consultation.