Does Rental Car Insurance Pay in an Accident?

Does Rental Car Insurance Pay In An Accident?

Car rental insurance is not mandatory for car renters to obtain in Louisiana. However, specific rules regarding the applicability of liability, coverage, and responsibility on bodily injuries and personal damages claims for car rentals are laid out in Louisiana Civil Code 22:1296.

As a car renter, it is crucial to understand how the law applies coverage and liability insurance policies to motor vehicle rentals in Louisiana. Below is valuable information on how car insurance policies are applied for car rentals in Louisiana.

Are Car Renters Required To Purchase Car Rental Insurance In Louisiana?

No.

In Louisiana, car renters are not required to purchase car rental insurance. However, as discussed below, there are varying repercussions on the liability over the damages and injuries caused by car rental accidents in the event that the motor vehicle renter refuses to obtain car rental insurance at the time of rental.

Moreover, a car renter’s insurance policy could automatically apply as the car rental’s insurance coverage.

Is A Car Renter’s Insurance Policy Coverage For Their Personal Motor Vehicle Transferrable To Their Car Rental In Louisiana?

Yes

Yes, the car renter’s insurance coverage policy applicable to their own personal motor vehicle is transferred to a car they have rented. However, the applicability of a car renter’s personal car insurance policy coverage may be limited.

According to the Louisiana Civil Code 22:1296, the motor vehicle insurance policy of the person renting the car would be extended to the vehicle they rented. This generally means that a car renter’s exact coverage for their own vehicles would serve as the primary insurance coverage for the rental car.

As further discussed below, a car renter’s insurance policy coverage for their own vehicles may not be applicable as the car rental’s primary insurance if the car renter has obtained an insurance policy to cover the car rental specifically.

Which Insurance Policy Would Apply To The Car Rental If The Renter Has Multiple Motor Vehicle Insurance Policies?

In the event that the car renter has multiple car insurance policies covering their own vehicles, then the motor vehicle insurance policy that includes a comprehensive and collision or liability insurance coverage would generally apply as the car rental’s primary coverage.

Which Insurance Policy Would Cover The Rental Car If The Car Renter Has A Personal Car Insurance Policy Coverage But Also Purchased A Separate Car Rental Insurance Policy?

Under Louisiana Civil Code 22:1296, the car renter’s own motor vehicle insurance policy would not serve as the primary coverage for the car rental if a car rental insurance policy is obtained specifically for the car rental. This applies even if the car renter’s motor vehicle insurance policy has better coverage.

Simply put, the car rental insurance policy would serve as the primary coverage for the rental car instead of the renter’s personal car insurance policy.

Are Rental Companies In Louisiana Liable To Cover The Damages And Injuries Caused By Rental Cars?

It Depends On The Insurance Policy Coverage Applicable And The Car Rental Circumstances.

According to Louisiana 22:1296, a car rental company must secure all car rental units that meet the state’s Motor Vehicle Safety Responsibility Law standards. However, there are limitations to the applicability of the rental company’s obligation over the car rental units. Specifically, the car rental company’s obligations and its limitations within the law are as follows:

• The security provided by the car rental will only be applicable if there is no other valid insurance that meets the minimum financial responsibility standard set by the Motor Vehicle Safety Responsibility Law.
• Other than providing the minimum financial responsibility stated above, a car rental company’s liability over the car rental unit would be limited if the car renter has a valid and collectible insurance policy or other means that meet the minimum financial responsibility standard of the Motor Vehicle Safety Responsibility Law, and that the claimant has an underinsured or uninsured motorist coverage for bodily injury and property damage claims, or if the car renter has violated the terms and conditions of the rental agreement.
• A rental company would be exempt from being required to offer uninsured or underinsured motorist coverage or lower limits of uninsured or underinsured coverage to the car renter or allow the renter to add authorized drivers as long as the car rental company provides minimum financial responsibility limits.

However, as discussed above, a car renter’s personal car insurance policy may apply to the car rental or a separately purchased insurance policy specifically for the car rental.

Filing a claim or understanding insurance coverage of rental vehicles can be complicated to navigate, mainly as specific rules apply under Louisiana laws. Thus, retaining the legal services of an attorney highly knowledgeable in insurance law in Louisiana may be valuable to your car rental insurance claim.

If you or a loved one is a party to an insurance claim involving a rental car, please give us a call at (225) 963-9638, or you can click here to contact us for a free consultation. Our highly experienced attorneys can help you assess your claim and represent your legal interests.