Car rental is big business in Australia, which means there are far more rental cars on the roads than ever before. Unfortunately, that also means that rental car accidents are also a more common occurrence than ever before.
Crashing a rental car is never fun, but it does happen. Read on to learn what happens if you have an accident in a rental car, what if you’re at fault., or what your legal rights are and more.
What happens when you have an accident in a rental car?
Hire car accident – not at fault
If you have a collision with someone who is legally driving a rental car, and you are not at fault, the other party’s car insurance should cover any damage to your vehicle. The other driver should have at least some basic car insurance independently or have purchased some through the process of renting the vehicle.
Any damage that your car receives should be covered by the rental car’s insurance policy. And you should be able to make an insurance claim against the rental company.
Hire car accident – at fault
If you are at fault in a car accident with a rental car your car insurance will generally cover damage to the rental car. Though it is very unlikely to ever occur because any rental car company will likely be extremely vigilant in ensuring their assets are protected, if you are uninsured the rental company’s insurance will attempt to recoup the repair costs directly from you.
All vehicles in Australia are covered by compulsory third party (CTP) insurance, which may cover injuries that occur to any of the people involved in the accident, but this won’t cover any damage to someone else's property, like a car.
Steps to take after a car accident with a rental car
If you follow these steps, it can make an unpleasant experience a little easier down the track:
First make sure everyone is safe or see if anyone needs medical assistance. Calling 000 immediately is vital if there are any seriously injured passengers.
Once you are sure that everyone is safe, exchange details with the other driver. This includes:
Driver’s full name and contact details.
Full name and contact details of who the vehicle is rented to (if different to the driver).
Insurance details. This might include the rental car insurance, travel insurance, etc.
The name and details of the car rental company.
If you’re able to, take some photos of the scene and any damage that has occurred. Take notes about what has happened so you can refer to it later if needed. This includes what the weather was like and how the accident occurred. Take the name and details of any witnesses.
Make a police report. In South Australia and Western Australia, you will need to make a police report within 24 hours if there is damage in excess of $3000. For the other states, you generally will need to make a police report within 24 hours if:
A person was killed or injured
A driver did not stop and give their details to the other driver(s)
A vehicle was towed away after the accident
The owner of any damaged property is not present
Contact your insurer. In most cases, your insurer will handle everything from this point on regarding vehicle damage. They will work on claiming from the car hire after the accident if you are not at fault.
If you have been injured in an accident, you may be entitled to compensation to cover your medical fees and/or loss of income if you’re unable to work. It’s important to get legal advice as soon as you can as there are time limits that apply to when you can seek compensation.
Things to think about going forward
Before you hire the car, it’s important to look at what type of excess you will be charged if you have an accident. Most rental companies charge a high excess no matter who is at fault. You may be able to pay a fee to reduce the excess. In some instances, travel insurance or credit card insurance (if you used the card to hire the car) may cover the excess.
Make sure to check if there are any exclusions or actions that breach your rental agreement. Car companies often won’t allow unauthorised drivers or driving off road, etc. If you breach any of their conditions you may be liable for all the damage and related costs.
After an accident, you must contact the car rental company as soon as you safely can and inform them of what has happened. They will be able to recover and replace the car for you in most instances.
Renting a car after a rental car accident
If you crash a rental car, the rental company may choose not to rent to you again. Or they may impose restrictions or require additional insurance for future rentals. Take a look at the terms and conditions of any rental agreement going forward so you understand the policy and what you might be on the hook for should another accident occur.
I crashed my rental car – what should I do next?
If you’ve crashed a rental car, the first thing to do is not panic. As already discussed most rental cars will have basic insurance to cover damage to the car. And they will all have CTP insurance to cover any injuries.
Just follow the same steps set out here and get in touch with our expert legal team if you need any help.
Contact Shine Lawyers
It can be confusing to know what to do when you’ve been involved in an accident with a rental car, but if you believe you’ve sustained an injury for which you should receive compensation, Shine Lawyers are here to help.
Our lawyers are experts in motor vehicle accident law and work on a no win, no fee basis*. Contact us today for an obligation-free chat about your situation or you can use our free online claim checker to see if you have an eligible claim for compensation.
*Conditions apply
