Two questions must be answered before a determination on payment obligations can be made.
What are the 2 questions?
• Who was at-fault for the accident?
• What level of coverage did the driver of the rental car have?
Who must pay if the other driver was at-fault?
In that case, the other driver’s insurance company must pay for repairs to the rented vehicle. If the driver of the other vehicle did not carry insurance, the driver of the rented vehicle must use his or her liability coverage. Any driver that had purchased an uninsured motorist option could use that, in the event that the other driver was uninsured.
Who must pay if the driver of the rented vehicle was found to be at-fault?
In that case, the same driver would be responsible for payment of repairs to the vehicle that had been secured from the rental agency. It would be that driver’s responsibility to discover what coverage he or she might have from a purchased policy.
—That coverage might come from the driver’s own policy. That would depend on where the accident took place. If it took place within the boundaries of the area in which the policyholder had been promised coverage, then the driver’s own insurance company would have to pay for repairs to the damaged vehicle.
—Alternatively, that coverage might come from an insurance that was purchased from the rental agency.
So, if the same consumer/driver did not have a policy that covered the situation, and had not purchased insurance from the rental company, then he or she would have to come up with the money for the repairs?
That might not be the case. It is possible that the consumer/driver had used a credit card to pay for the rented vehicle. If that were the case, then the credit card company might be held responsible for paying the cost of the repairs. In order to learn whether or not that was possible, the affected credit card holder would need to consult with a lawyer.
Understand that an injury lawyer in Stoney Creek would not know for certain whether or not the credit card company would be obligated to cover those expenses. It would be the lawyer’s job to investigate the situation, and to learn whether or not the credit card company did have that obligation.
The best way to avoid the worries that could arise, in the event of an accident, would be to pay for the insurance that was offered to all customers that had expressed a desire to rent one of the rental agencies vehicles. The only exception to that suggestion could emerge if the customer knew what his or her policy said, with regard to covering a rented vehicle.