In the Land of Enchantment, the allure of open roads and picturesque landscapes often leads individuals to explore the state in rental cars. While these vehicles offer convenience, the unfortunate reality is that accidents can still happen. In the event of a collision involving a rental car, the question of responsibility and who is going to pay for damages can become complex. This article aims to shed light on the intricacies of determining liability coverage in rental car accidents in New Mexico, providing valuable insights for those seeking guidance.
by Meaghan T. Baca, Esq.
What is Liability in a Car Accident?
Why is This Important?
Like in any other car accident, you must first establish who is at-fault for the accident, or in other words, who is liable. Generally, the liable person failed to exercise reasonable care while operating their vehicle and this failure led to the collision. Once you establish who was negligent and at fault, then you can consider who must pay for the damages.
Will Insurance Pay for Damages in a Rental Car Accident?
The person who is at-fault is responsible for paying for the bodily injury damages and the property damages after an accident. Usually, a rental car agency will require the renter to either purchase insurance or prove that they already have liability coverage with their own auto insurer prior to releasing a car to the renter. Alternatively, the renter can have their own auto insurance but also purchase additional car insurance through the rental company.
Let’s examine what would happen in each of these scenarios:
Renter Purchases Rental Car Insurance but Does Not Have Individual Car Insurance
When it comes to proving distracted driving as the cause of a collision, evidence supporting your claim is crucial. Evidence to support your claim might come from reviewing the other driver’s cellphone records or gathering witness statements that corroborate the driver’s behavior. This type of evidence is imperative in proving personal injury claims for distracted driving.
Renter Has Individual Auto Insurance and Elects Not to Purchase Rental Car Insurance
Usually, individual auto insurance liability coverage will cover the insured in a rental car; however, be aware because not all liability insurance will cover you! Be sure to consult with your insurance agent before declining to purchase coverage on your rental car. With that said, if your individual insurance covers liability in rentals, then that insurance would be responsible for all or part of the damages. Any damages in excess of the individual insurance’s policy limits would be the responsibility of the at-fault driver.
Who Pays for Rental Car Damages if You Did Not Cause the Accident?
Let’s say you’re in a rental car and are involved in a car accident. However, you did not cause the collision and the rental car policy does not have enough insurance coverage to pay for all your damages.
In this situation, you would first find out what liability insurance is available. As discussed above, there could be liability coverage with the rental insurance, and there could be liability coverage with the individual. If both policies have been exhausted, then you may make an “underinsured” motorist claim with your own auto insurer if you have underinsured motorist coverage (a/k/a “UM/UIM Coverage”). (Please note, underinsured and uninsured motorist coverage is optional in New Mexico; therefore, not every person has it).
If you purchased liability insurance with your rental car, then check the policy to see if there is UM/UIM coverage. If so, then the rental car policy is your primary UM/UIM policy because the crash happened in the rental car. However, in New Mexico, you may stack UM/UIM coverages. As such, if you have your own private UM/UIM policy with your auto insurer you might be able to make a secondary UM/UIM claim – as long as both UM/UIM policies do not offset each other.
Cassidy Baca, P.C. is a family-owned law firm, located in historic Bernalillo, New Mexico and serving surrounding communities like Albuquerque, Cuba, Rio Rancho, Placitas, Santa Fe, and more!
Why Do I Need a Lawyer After a Rental Car Accident?
Navigating the legal landscape following a rental car accident in New Mexico requires a comprehensive understanding of the various factors influencing liability. Whether you’re the renter, a third-party driver, or the rental company, consulting with a knowledgeable personal injury attorney in New Mexico is crucial to protect your rights and pursue fair compensation. By clarifying the responsibilities of each party involved, this article aims to provide valuable insights for those seeking guidance in the aftermath of a rental car accident in New Mexico.
Discover who is responsible in an accident involving a rental car in New Mexico. Learn about liability coverage, insurance options, and what to do if you’re not at fault. Get valuable insights and guidance from our personal injury attorneys in Albuquerque, New Mexico.
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What to do After a Car Accident in Albuquerque
Your actions right now may play an important part in determining the results of your auto accident case. Take the following steps to help ensure your case is preserved.
Seek Medical Attention
Check yourself for injuries and get to safety as soon as possible.
Contact the Police
Call 9-11 right away to report your accident. Request an ambulance if you are in pain, or immediately follow-up with your doctor or an urgent care visit.
Gather Evidence and Contact Information
Take pictures, exchange information with the other driver, and cooperate with any police investigation.
Document Your Injuries
Scheduling a visit with a medical doctor right away is important.
Take a Break
Don’t post on social media, and don’t speak with an adjuster without your attorney present.
Contact a Car Accident Attorney
The experienced accident attorneys at Cassidy Baca, P.C. are ready to help you understand all of your legal options after an injury.
Speak with an Experienced Car Accident Lawyer Right Away
If you have been hurt by another person, party, or entity or have lost a loved one during an accident, contact our knowledgeable personal injury attorneys in Albuquerque, New Mexico at Cassidy Baca, P.C. today at (505) 717-2992 for a free consultation.
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If you have been severely injured in an auto accident, car crash, or truck collision in Sandoval County, contact our Albuquerque Injury attorneys for a free case evaluation today.