After a rental car crash in Delaware, who pays for the damage depends on several sources, including your personal auto insurance, optional rental company coverage, your credit card benefits and the other driver’s policy.
Does your personal auto insurance cover rental cars?
Many personal auto policies extend liability protection to rental vehicles. When a crash is your fault, your insurance may cover bodily harm and financial losses that others sustain. If your policy includes collision and comprehensive coverage, it may also cover repair costs for the rental, though your deductible applies.
What role does rental car insurance play?
Rental companies offer optional coverage products at the counter. Loss Damage Waiver (LDW) is not insurance. With an LDW in place, the rental company gives up its right to bill you for vehicle damage, subject to the contract terms. LDW typically excludes situations such as:
- Damage caused by reckless driving
- Damage caused by driving under the influence of alcohol or drugs
- Damage caused by an unauthorized driver
- Damage caused by a violation of the rental agreement
These optional products add to your rental cost, but they can reduce your financial exposure if the vehicle is damaged, stolen or involved in a crash.
When does the other driver’s insurance apply?
When the driver responsible for the crash carries no insurance or too little to cover your losses, your own UM/UIM coverage may step in, subject to the terms of your policy. Delaware follows modified comparative negligence rules. If you are partly at fault, you may still recover damages as long as your share of fault is not greater than the combined fault of all other parties involved. However, your recovery is reduced by your percentage of fault.
Does credit card coverage apply to rental cars?
Many major credit card issuers provide collision coverage when you charge the full rental to that card and decline the rental company’s LDW. Some cards provide primary coverage, meaning the card’s coverage pays first. Others provide secondary coverage, which only applies after your personal auto policy pays.
When to get legal guidance after a rental car crash
Which coverage pays – and in what order – often depends on decisions made before the crash: whether your personal policy covers rentals, whether you declined the LDW and which card you used. If you are uncertain, a Delaware attorney can help identify which sources apply and what to do next.