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 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.
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.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.