Who’s responsible for damages regarding an accident with a loaner?

UPDATED: Nov 29, 2011

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Who’s responsible for damages regarding an accident with a loaner?

My auto company gave me a loaner but had no insurance on it.

Asked on November 29, 2011 under Accident Law, North Carolina


L.P., Member, Pennsylvania and New Jersey Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Thank you for submitting your question regarding liability insurance for a loaner car or rental vehicle.  Usually when you go to rent a vehicle, the sales personnel at the rental dealership will ask you if you want to add rental insurance for a small additional charge.  While all states require drivers to carry some type of car insurance, taking out a rental insurance policy is not always necessary.  This is a personal choice left up to the person renting the vehicle.  Depending on the type of car insurance that you currently have will dictate whether or not you should think twice about turning away rental coverage.

There are a number of insurance policies that write into their regular motor vehicle insurance policy to cover the insured drivers when they rent a vehicle.  In turn, the rental vehicle will get the same insurance coverage as your other vehicles under your policy.  You should check with you current car insurance policy, or even give a phone call to your insurance policy to see if your current car insurance is considered an “all-inclusive” policy which would cover your rental vehicles. 

Additionally, if you paid for your car rental with a credit card, your credit card company may participate in programs that provide collision coverage for your rental vehicle.  However, these insurance policies usually do not cover all costs, as would a general insurance policy, which will leave you with out-of-pocket costs, but it will at least provide you with some insurance coverage. 

Lastly, you can obtain rental coverage from the rental company, but not all insurance coverage is

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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