Here is a more detailed explanation of who pays for damages in different scenarios:
1. Renter's insurance: If the renter has purchased collision damage waiver (CDW) or loss damage waiver (LDW) insurance from the rental company, this insurance will typically cover the damages to the rental car. CDW and LDW are optional insurance products that provide coverage for damage to the rental car, regardless of who is at fault.
2. Renter's personal auto insurance: If the renter has personal auto insurance that includes rental car coverage, this insurance may also cover the damages to the rental car. However, the renter may need to pay a deductible, and their personal auto insurance may not cover all of the damages.
3. Rental company's insurance: Some rental companies offer their own insurance products, such as liability insurance and physical damage insurance. These insurance products may cover the damages to the rental car, but the renter may need to pay a deductible.
It is important to note that the specific coverage and who is responsible for paying for damages will depend on the terms and conditions of the rental car agreement and the insurance policies involved. It is recommended that renters carefully review the rental agreement and their insurance policies before renting a car to understand the coverage they have and what expenses they may be responsible for in case of an accident.
