Being involved in any car accident can be stressful, but things often become more complicated when a rental vehicle is involved. In Michigan, where no-fault insurance laws already add layers to the process of seeking compensation, rental car accidents bring their own set of challenges. Whether you were driving the rental or were hit by someone using one, it’s important to understand your rights and how liability is handled in these situations.
What to Do Immediately After the Accident
Your first priority after a crash should always be safety. Call 911 to report the incident and request medical assistance if anyone is injured. Move to a safe location if possible and exchange information with all drivers involved. Make sure to:
-
Document the scene with photos
-
Note the condition and location of all vehicles
-
Get contact details of witnesses
-
Ask for insurance information and rental car agreement details
Even though one of the vehicles is a rental, the process at the scene doesn’t change much. What changes later is how insurance and liability are handled.
Understanding Michigan No-Fault Rules
Michigan’s no-fault insurance law means your own auto insurance typically covers your medical expenses and lost wages—regardless of who caused the accident. If you were injured while driving a rental car and you have a Michigan no-fault policy, your insurance would generally provide your personal injury protection (PIP) benefits.
However, if you do not have your own auto policy, coverage may come from the rental car company’s insurance or the policy of another household member. This often depends on who rented the car and how the rental agreement was written.
Who Pays for Property Damage
In a rental car accident, determining who pays for property damage can be more complicated. Rental car companies usually offer customers various types of coverage at the time of rental, including:
-
Collision Damage Waiver (CDW): This is not technically insurance but a waiver that says the rental company won’t charge you for damage to the car.
-
Liability Insurance Supplement: This can cover damages or injuries you cause to others.
-
Personal Accident Insurance: This may help with medical bills for you and your passengers.
-
Your Own Auto Insurance: If you declined all the above and have your own full coverage auto policy, your personal insurance might still cover the rental vehicle.
If you’re the injured party and were not driving the rental, you may be dealing with the at-fault driver’s insurance, the rental agency’s insurer, or your own insurer. Multiple parties might be involved, which can delay or complicate your ability to get repairs or cover medical costs.
Rental Car Accidents Caused by Another Driver
If you were driving a rental and someone else caused the crash, you may be able to file a third-party claim against that driver for damages not covered by your PIP benefits, such as pain and suffering or long-term disability. This is allowed in Michigan if the injury is considered serious or results in significant impairment.
You may also be able to recover costs for the rental vehicle’s damage through the at-fault driver’s property damage liability coverage. But keep in mind, some drivers carry only the minimum required insurance, which may not fully cover your losses.
When the Rental Driver Is at Fault
If you were injured by someone driving a rental car, the process will depend on what coverage that person purchased. If the driver has their own insurance, that may extend to the rental vehicle. If they bought supplemental liability coverage from the rental company, that policy might apply instead.
In rare cases, the rental company may share some liability, especially if they rented the vehicle to someone without a valid license or ignored clear signs of driver unfitness. These cases are less common, but they do happen.
What If You’re a Passenger in a Rental Car
If you were injured while riding as a passenger in a rental car, your own PIP policy would typically cover your medical expenses. If you don’t have a policy, coverage may come from the driver’s insurance, a household member’s insurance, or the rental company’s plan.
You may also have the right to pursue a liability claim if the driver of the rental or another vehicle caused the crash. An attorney can help you figure out which route makes the most sense based on the injuries and insurance coverage involved.
Steps to Protect Your Rights
Because rental car accidents often involve multiple insurance companies, it’s easy for victims to get lost in paperwork or pressured into low settlement offers. Taking the right steps early can protect your right to fair compensation:
-
Seek medical care immediately, even for minor pain
-
Keep records of treatment, expenses, and time missed from work
-
Avoid giving recorded statements to insurers before speaking with a lawyer
-
Save a copy of the rental agreement if you have access to it
-
Consult with a Michigan personal injury attorney who understands rental car liability
These steps will make it easier to support your claim and avoid mistakes that can be used against you later.
Why Legal Guidance Matters
Rental car accident claims require attention to detail. There may be questions about who rented the car, whether coverage was in place, and whether fault is clear. Because of Michigan’s no-fault structure and the involvement of out-of-state companies in many rental agreements, injured victims often face delays, denials, or confusion when trying to recover compensation.
An experienced attorney can investigate the crash, determine which insurance policies apply, and push for full compensation through negotiation or, if necessary, litigation. Your lawyer will also deal with the rental agency, their insurer, and any involved third parties—so you don’t have to manage the stress alone.
Conclusion
Being injured in an accident with a rental car in Michigan brings extra complications you might not face in a typical crash. Between no-fault rules, various insurance policies, and the involvement of rental agencies, it’s easy for injured drivers and passengers to get overwhelmed.
But the law still protects your right to recover if someone else was negligent. Whether you were driving the rental or hit by one, knowing how the process works—and having the right legal support—can make a major difference in how your claim is handled and how quickly you’re able to move forward.
ADDRESS 
CONTACT 
EMAIL