The signed driver: As the person legally responsible for the rental car, the signed driver is initially liable for any damages caused to another car in an accident, regardless of whether the driver carries personal auto insurance.
The rental car company: Rental car companies typically provide the option to purchase optional damage waiver or loss damage waiver (LDW) insurance when renting a vehicle. If the signed driver declined this extra insurance and had no collision or comprehensive coverage of their own, the rental car company may hold them financially responsible for damages.
The other driver's insurance: If the other driver involved in the accident has auto insurance, their liability coverage may come into play to cover the damages inflicted on their car. Depending on the jurisdiction and specific policy limits, a portion or all of the expenses may be recoverable by the other party to rectify the damages
Third-party auto liability insurance: Some credit card companies or personal auto insurance policies provide secondary or supplemental rental car coverage. These may offer limited protection as a secondary coverage if the signed driver doesn't purchase rental car LDW insurance directly from the rental company and lacks their personal auto insurance coverage.
Injured parties: If the accident results in bodily injuries of the other party or their passengers, the signed driver and possibly the renter (the individual who made the car reservation) may still face legal liability unless appropriate bodily injury liability protection was acquired (if available with your personal auto insurance or through separate rental insurance purchase).
It's crucial to understand car rental agreements and associated insurance options comprehensively when renting a vehicle. Choosing adequate insurancecoverage from the rental company or your personal policy can substantially limit potential financial accountability in accident situations. If needed, seek clarification from the provider or explore insurance comparisons before taking control of the rental car.
