Rental Car Accidents: Understanding Your Coverage Before Your Spring Break Road Trip

By Eugene Bruno on March 3, 2025

With Spring Break just around the corner, many of you may be gearing up for road trips or beach vacations. But a fun trip can turn into a financial and legal headache if you’re involved in a rental car accident. Don’t get caught paying for expenses that you thought were covered but actually aren’t.

If you’re planning to rent a car for your getaway, understanding your insurance coverage is just as important as mapping out your route. Before you hit the road, take a few minutes to review your rental car insurance options to ensure you’ll be protected if the unexpected happens.

What Does Rental Car Insurance Actually Cover?

When you rent a car, you’ll typically be offered several types of optional coverage. It can be confusing, but choosing the right protection can save you from major out-of-pocket costs if you’re involved in an accident. Here’s a breakdown of the most common types of rental car insurance options, what they cover, and what they don’t.

Liability Insurance

• Covers injuries or damage to other people’s vehicles or property if you cause an accident.

• If you have personal auto insurance, it typically extends to rental cars (call your insurance company to verify coverage). If you cause an accident, your own liability insurance will typically be the primary coverage, meaning that you must use your own insurance before the rental company’s insurance applies.

• Technically, rental companies own the vehicle, so they provide California state minimum liability coverage. However, it’s secondary to your personal policy and may not be enough if you’re involved in a serious crash.

Supplemental Liability Insurance Purchased From the Rental Company

• Rental car companies offer optional Supplemental Liability Insurance (SLI). While it isn’t mandatory, SLI can offer peace of mind and greater protection if you cause a serious crash.
• Increased liability limits of up to $1 million.
• If you purchased SLI, it generally becomes the primary insurance coverage if you cause an accident (meaning you will not have to make a claim through your own auto insurance).

Collision Damage Waiver (CDW)/Loss Damage Waiver (LDW)

• Covers damage to the rental car if it’s in an accident, vandalized, or stolen, regardless of fault. If you caused the damage to the rental vehicle, this coverage may avoid having to make a property damage claim through your own insurance, or it may waive your collision deductible.
• Does NOT cover injuries to you or others, personal property inside the car, or liability for damages to other vehicles.

Personal Accident Insurance (PAI)

• Covers medical expenses for you and your passengers if you’re injured in an accident.
• Often overlaps with health insurance.

Personal Effects Coverage (PEC)

• Covers theft of personal belongings from the rental car.
• May duplicate coverage you already have through renters or homeowners insurance.

Are You Already Covered? Check These First!

Before you purchase optional or supplemental rental car insurance at the counter, find out whether you may already have coverage through your existing policies.

Your Personal Auto Insurance Policy

• Collision and comprehensive coverage: If you have this coverage on your own car, it may extend to rental vehicles.
• Liability coverage: Your policy may cover injuries or damages to others if you cause an accident in a rental vehicle.
• Medical payments (MedPay): If you have this coverage, it may pay for your medical bills if you’re hurt while in a rental vehicle.

💡 Tip: Contact your auto insurance provider before your trip to confirm what is and isn’t covered.

 Your Credit Card Benefits

Many credit cards offer rental car insurance if you use them to book and pay for the rental. Coverage varies, but it often includes:

• Collision damage waiver (CDW) coverage (so you don’t have to buy it from the rental company).
• Exclusions on liability and personal injury, meaning you may still need separate coverage for medical expenses or damage to others.

💡 Tip: Call your credit card company before renting to verify what’s covered and any exclusions.

How to Protect Yourself Before Renting a Car

• Read the fine print. Don’t just assume you’re covered—ask for details about the rental company’s policy.
• Check your existing insurance. Review your personal auto policy and credit card benefits before purchasing additional coverage.
• Consider additional coverage if necessary. If your personal insurance or credit card doesn’t cover something critical, it may be worth paying for extra protection.
• Take photos and inspect the rental car. Before leaving the lot, document any existing damage so you’re not blamed for it later.
• Drive safely. Accidents can happen, but following speed limits, avoiding distractions, and staying alert can help keep you and your passengers safe.

Contact a Credible Auto Accident Law Firm for the Next Steps

If you’ve been involved in a rental car accident, you need to act quickly. The San Diego car accident lawyers at Eugene Bruno & Associates have recovered tens of millions of dollars for car accident victims. With 40+ years of combined experience and a 99.7% success rate, we’re confident we can help with your case.

Call our San Diego law firm at 1-888-BRUNO-88 (1-888-278-6688) and speak with one of our experienced personal injury attorneys today.