Florida welcomes millions of tourists every year, many of whom rent cars to explore the state. When rental car accidents happen—and they happen frequently—complex questions arise about insurance co...
Florida welcomes millions of tourists every year, many of whom rent cars to explore the state. When rental car accidents happen—and they happen frequently—complex questions arise about insurance coverage and liability. Whether you're a tourist who rented a car and was injured, or a Florida resident hit by someone in a rental vehicle, understanding how rental car accident claims work is essential for protecting your rights.
The Complex Web of Rental Car Insurance
Rental car accidents involve potentially multiple layers of insurance coverage, which can work in your favor if properly navigated:
The rental company's coverage: Rental companies are required to provide minimum insurance coverage in Florida ($10,000 PIP, $10,000 PDL). However, these minimums are grossly inadequate for serious accidents.
Optional rental coverage: The additional coverage offered at the rental counter (LDW, CDW, supplemental liability) may provide additional protection depending on what was purchased.
Your personal auto insurance: If you have auto insurance at home, it may extend to rental cars. Coverage varies by policy.
Credit card coverage: Many credit cards provide rental car coverage when you pay with the card. This typically covers damage to the rental vehicle but may not cover liability to others.
The at-fault driver's insurance: If someone else caused the accident, their insurance should cover your damages.
Determining which coverage applies and in what order requires careful policy review.
Florida's Graves Amendment and Rental Company Liability
Before 2005, Florida's dangerous instrumentality doctrine made rental car companies liable for accidents caused by their renters. The federal Graves Amendment changed this significantly.
Under the Graves Amendment (49 U.S.C. § 30106), rental car companies are generally shielded from liability for accidents caused by their renters, as long as the company wasn't independently negligent and maintained required insurance.
This means if you're injured by someone driving a rental car, you typically cannot sue Enterprise, Hertz, Budget, or other rental companies simply because they owned the vehicle. Your claim is against the driver who caused the accident.
However, rental companies can still be liable if they negligently entrusted a vehicle to someone they knew or should have known was dangerous, rented to an unlicensed or underage driver, or failed to maintain the vehicle properly (brake failure, tire blowouts, etc.). These exceptions require proving the rental company did something wrong beyond merely owning the vehicle.
If You're Injured While Driving a Rental Car
If you're injured while driving a rental car in Florida, your claims depend on who caused the accident:
If another driver caused the accident: You can pursue a claim against that driver's insurance. You'll also have PIP coverage through the rental (though only $10,000). Your own auto insurance may provide additional coverage if you have it.
If the accident was your fault: The rental company's minimal liability coverage may be all that's available to compensate others you injured. This is why rental company optional coverage can be valuable.
If the rental car malfunctioned: You may have a product liability claim against the rental company and/or vehicle manufacturer if brake failure, steering problems, or other defects contributed to the crash.
Tourists from out of state face particular challenges because they may not have Florida PIP coverage and their home state insurance rules differ. Understanding what coverage travels with you is important before renting.
If You're Hit by a Rental Car Driver
If someone driving a rental car hit you, your recovery path involves:
Identifying the driver: Get all information at the scene—their name, license, home address, and home insurance information, not just the rental agreement.
Pursuing the driver's insurance: The driver's personal auto insurance likely provides primary coverage. If they have adequate limits, this may be sufficient.
Rental company coverage: The rental company's supplemental liability coverage may apply if the driver purchased it.
Your own UM coverage: If the driver is uninsured, underinsured, or from out of state with minimal coverage, your uninsured/underinsured motorist coverage becomes crucial.
Challenges arise when rental drivers are tourists from other states or countries with limited coverage and no local assets to pursue. Your own insurance becomes critical in these situations.
Special Considerations for Tourist Accidents
Tourist rental car accidents present unique issues:
Out-of-state drivers: Tourists may have insurance from other states with different rules. Their coverage may not meet Florida standards or may be difficult to access.
International visitors: Tourists from other countries may have no applicable insurance at all. Travel insurance they purchased may or may not cover auto accidents.
Unfamiliarity with roads: Tourist drivers often don't know the area, leading to sudden stops, wrong turns, and confusion that contributes to accidents.
Vacation mindset: Some tourists drive more recklessly on vacation, and rental car anonymity may encourage risk-taking.
If you're a Florida resident injured by a tourist in a rental car, documenting everything at the scene is especially important because the driver may leave the state soon after.
Protecting Yourself When Renting a Car
If you're renting a car in Florida, consider these precautions:
Check your existing coverage first: Review your personal auto policy and credit card benefits before purchasing rental coverage.
Consider supplemental liability insurance: The rental company's optional liability coverage may be worth the cost if your personal coverage is limited.
Document the vehicle condition: Take photos of any existing damage before leaving the lot to avoid disputes later.
Drive defensively: Florida roads can be challenging for visitors. Allow extra following distance and use GPS carefully.
Know what to do if there's an accident: Keep the rental agreement accessible and know who to contact.
If you're injured in a rental car accident, report to both the rental company and any applicable insurance promptly.
Contact Emas Law Group Today
Rental car accidents involve complicated insurance issues that require careful analysis. Whether you were driving the rental, hit by someone in a rental, or injured as a passenger, understanding the layers of coverage that might apply is crucial for maximizing your recovery. If you've been involved in a rental car accident in Florida, contact Emas Law Group for a free consultation. We'll untangle the insurance coverage questions and ensure every available source of compensation is pursued.
Frequently Asked Questions
Does my personal car insurance cover rental cars?
Many personal auto policies extend coverage to rental cars, but policies vary. Liability coverage often transfers, while collision/comprehensive coverage depends on your policy terms. Review your policy or call your agent before renting to understand your coverage.
Should I buy the rental company's insurance?
It depends on your existing coverage. If you have comprehensive personal auto insurance and a credit card with rental coverage, rental company options may be duplicative. If your personal coverage is limited or you're traveling internationally, rental coverage may be worthwhile.
Can I sue the rental car company if their vehicle caused my accident?
The federal Graves Amendment generally protects rental companies from vicarious liability for their renters' accidents. However, you may have a claim if the company negligently maintained the vehicle (brake failure, etc.) or negligently rented to someone they knew was dangerous.
What if the rental driver who hit me was from another country?
International visitors may have limited or no applicable insurance. Your own uninsured motorist coverage becomes critical in these situations. Investigation may reveal whether the driver has travel insurance or assets that could provide compensation.