Who pays when a rental car is in a crash?
The driver who caused the crash, through that driver's insurance, is responsible for the injuries. The rental company is usually not liable just because it owns the car: a federal law known as the Graves Amendment bars claims against a rental or leasing business based only on ownership, as long as the company itself was not negligent and did nothing criminal (49 U.S.C. § 30106).
That leaves the driver's own auto policy, any liability coverage bought at the counter, and the rental company's own negligence, if there was any, as the main sources of payment for someone else's injuries.
If a rental car driver hit you
Your claim is against the person who was driving. Many renters have a personal auto policy that extends liability coverage to a rental. Some bought supplemental liability coverage from the rental company. Your job, or your lawyer's, is to find out which policies exist, which responds first, and what the limits are.
Get the rental agreement number and the rental company's name at the scene along with the driver's license and personal insurance. The rental company's claims department will often be the first to call you. Its role is to deal with its car, not to protect your injury claim.
One detail is worth checking: rental fleets often carry out-of-state plates. If you are bound by limited tort and the at-fault car was registered in another state, Pennsylvania law may restore your full tort rights (75 Pa.C.S. § 1705(d)(1)(ii)). Our page on out-of-state drivers covers that exception.
When the rental company can still be responsible
The Graves Amendment protects owners from liability based on ownership alone. It does not protect a company from its own negligence. If the company rented out a car with bald tires, bad brakes or an open safety recall it failed to fix, a claim may lie against the company directly.
The statute also preserves state laws that impose financial responsibility and insurance requirements on vehicle owners (49 U.S.C. § 30106(b)).
If you were driving or riding in the rental
Your medical bills are first paid by first-party benefits. Under 75 Pa.C.S. § 1713, if you have your own policy, it pays first even though you were in a rental car. If you have no policy but live with a relative who does, that policy is next. Only then does the policy on the vehicle you were in apply.
If another driver caused the crash, you claim against that driver's liability coverage for your other losses, and then against UIM if the coverage falls short. If you were renting a car because yours was in the shop after an earlier crash, keep those two claims and their paperwork separate.
Counter coverage and credit card benefits
Rental counters offer several products, and they are often confused. A collision or loss damage waiver typically deals with damage to the rental car itself. Supplemental liability coverage adds protection for injuries to others. Personal accident coverage pays limited benefits to the renter and passengers. Many credit card rental benefits cover damage to the rental car rather than injuries.
Read the actual terms before you assume anything. We ask clients for the rental agreement, the receipt showing which coverages were bought, and the credit card used.
Visitors, airport rentals and local roads
Travelers who fly into Philadelphia and drive rentals onto I-76, I-476 and US-1 are unfamiliar with local roads, and wrong-lane turns and sudden merges are common. If the renter lives in another state, the claim may involve an out-of-state insurer, but a crash that happens in Pennsylvania can generally be brought in Pennsylvania courts.
Pennsylvania generally allows two years to file an injury lawsuit (42 Pa.C.S. § 5524). Warren I. Siegel, a Pennsylvania lawyer since 1992, can sort out every policy in a rental car crash. The fee is 100% contingency: no attorney fee unless we recover, all case costs advanced by the firm and repaid only from a recovery. Call (267) 412-4601 or send the free case review form.
Questions People Ask About Rental Car Accident Claims
Can I sue a rental car company if its car hit me?
Not just because it owns the car. The Graves Amendment blocks ownership-only claims. You can pursue the company if its own negligence, such as renting out a car with known defects, contributed to the crash.
Does my personal car insurance cover a rental car accident?
Many personal policies extend coverage to rentals, but the terms vary. Your first-party medical benefits generally follow you as the named insured, even in a rental.
Who pays for my injuries if I was a passenger in a rental car?
Your own policy or a household policy pays medical benefits first, then the policy on the rental. Your other losses are claimed against whichever driver caused the crash.
Does the rental company's damage waiver cover injuries?
Usually not. A collision or loss damage waiver generally deals with damage to the rental car. Injury coverage comes from liability insurance or separate accident coverage.
What if the renter who hit me had no insurance of their own?
Check whether the renter bought liability coverage at the counter and whether the rental carried required coverage. If not enough is available, your own uninsured or underinsured motorist coverage may apply.
What should I get at the scene of a rental car crash?
The driver's license and personal insurance, the rental company name, the rental agreement number, the plate and state of registration, and photos of everything.
Sources
- 49 U.S.C. § 30106 (rented or leased motor vehicle safety and responsibility; Graves Amendment)
- 75 Pa.C.S. § 1713 (source of first-party benefits)
- 75 Pa.C.S. § 1705 (limited tort exceptions)
- 42 Pa.C.S. § 5322 (jurisdiction over persons who cause harm in this Commonwealth)
- 42 Pa.C.S. § 5524 (two-year limitation)
Written for general information by the office of Warren I. Siegel, Esq., Pennsylvania Attorney ID 65342. Last reviewed 2026-09-25. This is not legal advice for your situation, and deadlines vary by claim. Talk to a lawyer before relying on any date.