Who Pays for a Rental Car Accident in Minnesota?

Key Takeaways

• Minnesota law requires that your auto insurance cover rental cars. You typically don't need to purchase additional coverage from the rental company.
• Your personal injury protection (PIP) coverage follows you to rental vehicles, providing medical expense coverage regardless of fault.
• The at-fault driver's insurance is ultimately responsible for damages and injuries in most rental car accidents.
• Rental car companies have limited liability but can be held responsible in certain circumstances involving negligence.

Minnesota's Rental Car Insurance Laws

Minnesota law requires every auto insurance policy to include a minimum of $35,000 in coverage for damage to a rental car, with no deductible. All auto insurance policies must cover damage and loss of use to a rental vehicle, and extend the policy's basic economic loss benefits, residual liability insurance, and uninsured and underinsured motorist coverage.

This requirement means that if you have auto insurance in Minnesota, your policy automatically covers rental cars in most situations up to the extent of your coverage.

Consumer Protection Requirements

The state has protections to prevent rental car companies from selling you unnecessary insurance. When you rent a car in Minnesota, the rental company must provide you with a written notice stating that your personal auto insurance likely covers the rental vehicle, making additional coverage purchases optional rather than necessary.

Who Pays for a Rental Car Accident?

If you’re in an accident involving a rental car, the liability for covering damages will depend on the details of the accident. Here are a few possible scenarios.

When You're At Fault in a Rental Car

Your auto insurance typically covers the damages if you cause an accident while driving a rental car.

• Your no-fault PIP coverage will cover your medical expenses and lost wages regardless of who caused the accident.
• Your liability coverage will cover damage to other vehicles and injuries to different people, up to your policy limits.
• Your collision coverage will pay for damage to the rental car, subject to your deductible. (Collision coverage is not mandatory in Minnesota, so this may not be covered under your current policy.)
  

When Someone Else Is at Fault

If the other driver is at fault for the accident, and they have insurance coverage, their insurance should cover the damages, including:

• Damage to the rental vehicle
• Your medical expenses (beyond what your PIP covers)
• Lost wages and other economic damages
• Pain and suffering damages

An insurance adjuster from the at-fault driver's insurance company will investigate the accident and make an offer under the terms of that driver's policy. However, you should always be wary of these offers, and never sign anything until you’ve spoken to an attorney.

When the At-Fault Driver Is Uninsured

If you are driving a rental car and are hit by an uninsured driver, your insurance coverage must fill the gap. Your uninsured and underinsured motorist coverage will cover medical expenses after your PIP benefits are exhausted. Your collision coverage, if you have any, will pay for repairs to the vehicle.

Conversely, if you are hit by someone driving a rental vehicle who has no auto insurance, the rental car company must provide the minimum coverage required by state law. This coverage is currently set at $30,000 for liability per vehicle if one person is injured in an accident, and $60,000 if more than one person is injured.

Can Rental Car Companies Be Liable?

While rental car companies are generally protected from liability under federal law (see the Graves Amendment for details), there are exceptions where they can be held responsible.

Negligent Maintenance

If a rental car accident is caused by a mechanical failure that the rental company should have caught during routine maintenance, they may be liable. Examples include:

• Brake failures due to a lack of maintenance
• Blowouts from worn tires
• Steering problems from neglected repairs
  

Vehicle Defects and Recalls

If a rental company continues to rent vehicles with known safety defects or active recalls contributing to an accident, it may be liable for any resulting injuries and damages.

Renting to Unqualified Drivers

Rental companies have a duty to verify that renters are legally qualified to drive and not obviously impaired. 

Credit Card Coverage for Rental Cars

Many credit cards offer rental car coverage as a benefit, but it's important to understand the limitations. Credit care companies may cover:

• Collision damage to the rental vehicle
• Theft of the rental car
• Loss of use charges

However, they often do not cover:

• Liability for injuries to other people
• Damage to other vehicles
• Medical expenses

Check with your insurance company to determine the scope of your coverage before you rent a car.

Common Challenges in Rental Car Accident Cases

Rental car accidents often involve complications that don't arise in typical car accidents:

Multiple Insurance Policies

With your insurance, the at-fault driver's insurance, rental company coverage, and potential credit card benefits all in play, determining which policy pays first can become a complex legal issue.

Disputes Over Coverage

Insurance companies may dispute whether they have primary or secondary responsibility for covering damages, leading to delays in resolving your claim.

Rental Company Tactics

Some rental companies may try to charge your credit card immediately for damages or pressure you into accepting their damage assessment before your insurance company has had a chance to investigate.

Complex Liability Questions

When mechanical failures or rental company negligence may have contributed to the accident, determining all responsible parties requires a thorough investigation.

When to Consult an Attorney

Consider seeking legal help in the following cases:

• If you or anyone else suffered significant injuries, you need someone who understands how to maximize your compensation for medical expenses, lost wages, and pain and suffering.
• When multiple insurers point fingers at each other or deny responsibility, an attorney can cut through the red tape and hold the right parties accountable.
• Insurance companies often make lowball offers in hopes that you’ll accept before you know how much your claim is really worth. An experienced attorney can evaluate whether an offer fairly compensates you for all your damages.
• If you suspect the accident was caused by poor vehicle maintenance, known defects, or other rental company negligence, proving this requires legal expertise and investigation.
• If insurance companies are delaying your claim, not returning calls, or giving you conflicting information, legal representation can accelerate the process.

Get Help from Minnesota’s Trusted Personal Injury Firm

If you've been involved in a rental car accident in Minnesota, don't let insurance complications prevent you from getting the compensation you're entitled to. At SiebenCarey, we've been helping Minnesota families navigate complex car accident claims for over 70 years. We understand the unique challenges of rental car accidents and know how to hold all responsible parties accountable.

Whether you're dealing with disputed liability, multiple insurance companies passing the buck, or a rental car company trying to shift costs to you, we have the experience to protect your interests and pursue the full compensation you deserve.

Best of all, we work on a contingency fee basis, meaning you won’t pay anything unless we recover money for you.

Schedule a free consultation with one of our Minnesota auto accident attorneys, and we can answer all your questions. Don't face the insurance companies alone – let our experience work for you.