Riddle & Riddle Injury Lawyers can help you understand your rights and navigate these complex claims. We have more than 40 years of experience representing car accident victims, and we believe that Justice Counts™ for everyone. Give us a call at 800-525-7111 or contact us online today to schedule a free consultation to learn how we can help with these multi-party claims.
Why Rental Car Wrecks Are More Complex Than Standard NC Accidents
North Carolina is a fault state for car accidents, meaning the at-fault driver is typically held responsible for covering the damages resulting from any accident they cause.
However, North Carolina follows an unusual rule that differs from the majority of states, and which may catch out-of-state visitors off guard. North Carolina follows contributory negligence rules. These rules can prevent crash victims from recovering compensation if they are even 1% to blame for the accident.
Rental car crashes are also complicated by the fact that multiple parties may be responsible for covering accident losses. This may include:
- The driver
- The rental car company
- The car manufacturer
- Third-parties
And, in some cases, these parties may have multiple insurance policies, such as rental car counter coverage they purchased when renting the vehicle, their personal liability policy, or credit card coverage.
An attorney with experience in rental car accidents can help victims sort out who is to blame and address other issues, like dealing with out-of-state insurance if the rental car driver caused the crash and was visiting North Carolina from another state.
Parties Who May Be Held Liable in an NC Rental Car Accident
Determining who is liable in a rental car accident is challenging because there are often many parties involved.
If you were hit by a rental car driver in NC or otherwise involved in a rental car accident in North Carolina as a driver, pedestrian, passenger, or bicyclist, here are the different parties you could potentially take legal action against if you can prove liability under North Carolina’s fault rules.
The Driver of the Rental
Any authorized driver of a rental car is personally liable for negligent driving, just as they would be in their own vehicle. Their own auto insurance may sometimes cover the losses, or they may have coverage through the rental car agency.
The Rental Car Company
The Graves Amendment, found in 49 U.S.C. § 30106, generally protects rental car companies from being held vicariously liable for the negligence of renters. This is a federal law that applies throughout the U.S., including in North Carolina. However, there are some limited exceptions. A rental car company could be sued for:
- Negligent maintenance
- Negligent entrustment (renting to someone they knew or should have known was unfit to drive)
- Direct negligence by a rental company employee such as a rental car driver who is driving a vehicle unsafely.
Vehicle Manufacturers or Maintenance Providers
If any component of the vehicle is defective and causes the crash, the vehicle manufacturer or parts manufacturers could be held responsible under North Carolina’s product liability laws. Examples could include situations in which defective brakes cause an accident.
How Insurance Works After an NC Rental Car Wreck
Rental car wrecks are complicated because there could be multiple NC rental car insurance claims. Here are some of the different kinds of insurance that may provide coverage.
Coverage Sold at the Rental Counter
Rental car companies often sell insurance at the counter. Some of the different kinds of insurance the rental car company offers include:
- Supplemental Liability Protection (SLP): This provides additional liability coverage if you injure someone else or damage another person’s property while driving the rental car.
- Personal Accident Insurance (PAI): This helps cover medical expenses for you and your passengers if you are injured in an accident in the rental vehicle.
- Personal Effects Coverage (PEC): This covers certain personal belongings if they are stolen from or damaged in the rental car.
Rental car drivers may also be offered a Loss/Collision Damage Waiver (LDW or CDW), which is not technically insurance but is an agreement that waives the rental company’s right to hold you financially responsible for certain damage to the rental vehicle or for theft of the rental vehicle.
Coverage Outside the Rental Counter (Personal Auto and Credit Card)
Most North Carolina personal auto policies also provide liability and collision coverage if the policyholder rents a vehicle. Coverage can vary, and drivers should check with their insurer.
Credit card companies may also provide secondary collision coverage for drivers who pay for a rental with their card, but this typically does not include liability coverage. The Insurance Information Institute recommends contacting your card issuer to see what is covered.
How NC's Contributory Negligence Rule Applies to Rental Wrecks
While North Carolina is a fault state that allows drivers to get compensation from the at-fault driver in any accident, the state also has contributory negligence rules. These make it more difficult for victims to pursue a claim. Contributory negligence applies to rental car crashes just as it does to any other crash.
Under contributory negligence rules, accident victims can’t get compensation if they’re even 1% to blame for an accident. Since most states don’t have this rule, it often comes as a surprise to out-of-state visitors who become involved in accidents. Because proving fault is so important, preserving evidence, including photos, witness statements, and police reports, is critical in rental car accident cases.
Steps to Take Immediately After a Rental Car Wreck in NC
After a rental car wreck in NC, you should:
- Report the accident
- Get medical help
- Preserve evidence from the crash scene
- Obtain driver and witness contact details
- Notify the rental car company, as the rental agreement likely requires notification
- Alert your insurer. Insurance may pay for a rental car while your vehicle is being fixed
- Avoid talking to the insurance company before consulting a lawyer so you don’t jeopardize your case
You can call 911 or the non-emergency number. You are required to report a car accident if someone is hurt or killed or if there is substantial property damage.
Talk to a North Carolina Car Accident Lawyer Today
Riddle & Riddle Injury Lawyers believes Justice Counts™ for everyone, and we are ready to fight for you. Learn about our firm to find out about our long track record of success and see how we can help you. Give us a call at 800-525-7111 or contact us online today to schedule your free case evaluation and learn how we can help with these multi-party claims.
