Auto Accidents in a Rental Car – Insurance Is Important!

When you’re on vacation, a car accident is probably the last thing in your mind. Unfortunately, thousands of auto accidents occur in rental cars every year, and many of them are in Tampa. Whether you were the driver of a rental car or the other driver was the one in the rented vehicle, there is one exceptionally important difference you should know between car accidents involving personal cars and ones involving rented vehicles: the Graves Amendment.

In 2005, a federal transportation bill that included a passage called The Graves Amendment became law. This amendment limits rental companies’ liability because it means that states cannot force these companies to be vicariously liable for car crashes that occur in their vehicles. The exception is if they knowingly rented a faulty vehicle – a nearly impossible point to prove.

So, what does this mean for you? Insurance is important! No matter if you’re renting for a day or a month, make sure you have adequate insurance. This doesn’t necessarily mean you have to purchase insurance from the rental agency. For example, some auto insurance policies include rental coverage as well as personal vehicle coverage, and some credit cards provide a certain level of insurance on rental cars if you use that credit card to pay for the car. Regardless of where it comes from, having adequate insurance is essential to protecting yourself. Don’t wait until after the accident to think about it.