What happens if you crash a rental car without insurance?

Question

If you’re in an accident without insurance and you are at fault, you will need to pay out of pocket for any damage or injuries you cause. You will also face your state’s penalties for driving without insurance, which could include fines, a suspended license, and even jail time. If you are uninsured and the other driver is at fault, however, their insurance will cover your bills up to their policy limits.... read full answer

Almost every state requires car insurance, with the exceptions of New Hampshire, Virginia, and remote parts of Alaska. In every other state, driving without insurance will result in steep penalties. Additionally, police officers can legally have your vehicle towed if you don’t have insurance. And even if insurance is not required in your state, you will still be financially responsible for any damage you cause.

Causing an accident without the financial safety net of a car insurance policy also leaves you vulnerable to lawsuits. In no-fault states, each driver’s insurance pays their basic medical bills, but drivers can sue for serious or particularly expensive injuries. However, fault laws do not affect property damage, so you will still be responsible for any damage you cause to other cars, buildings or mailboxes, for example. And in tort states, which use fault as a factor in determining who pays, you can be sued for expenses due to injuries or property damage. Even if you don’t have enough money to pay for the destruction you cause, courts can seize your assets or garnish your wages.

If you caused an accident without insurance and want to continue driving, you should purchase a car insurance policy immediately. Be aware, however, that drivers with a lapse in coverage will pay more for insurance since they are considered high-risk. A history of at-fault accidents will also increase your premium. With that in mind, WalletHub has ranked the cheapest car insurance companies for drivers with accidents, for your convenience.

Cheapest Car Insurance for Drivers with One At-Fault Accident

AAA - $715 annually

Geico - $900 annually

Esurance - $1,103 annually

USAA - $1,154 annually

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Answer 1 · 2022-03-09 11:53:28

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Leif Olson, Car Insurance Writer

@leif_olson_1 • 03/09/22 This answer was first published on 03/09/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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If you crash a rental car without insurance and you are at fault, you will have to pay out-of-pocket for damage to the rental car. If you are not at fault, the other driver’s liability insurance is responsible for paying to repair or replace the rental car.

Note that you must have at least the state-mandated minimum level of liability insurance when driving, even when driving rental cars. In every state except California, the state-minimum level of coverage is already included in standard rental car fees. Thus, you are protected against a basic level of liability claims while driving a rental car. However, this will not cover damage to the rental car itself.

You Have to Pay Out-Of-Pocket to Repair a Rental Car If:

You are at-fault,
You do not have collision or comprehensive coverage,
And you decide not to buy a collision damage waiver from the rental car company.

You may also have to pay out-of-pocket if you cause an accident that costs more in repairs and/or medical bills than you have in liability coverage. You can prevent this by purchasing higher liability limits through the rental car company.

To learn more, check out WalletHub’s guide to rental car insurance.

What happens if you crash a rental car without insurance?

Leif Olson, Car Insurance Writer

You Have to Pay Out-Of-Pocket to Repair a Rental Car If:

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