"Can I sue a rental car company for my car accident?"
If that question—or something like it—is what brought you here, you're in the right place. The short answer is: "Probably not." But a complete answer depends on the specific facts of your case.
Most often, you'll look to the at-fault driver to pay for your injuries. If you were the at-fault driver, your auto insurance will cover others' losses. In either case, you might be able to bring a claim against the rental company if you can show it was partly to blame for what happened.
We start by identifying the parties who usually are on the hook in a rental car accident case. Following that, we'll describe some situations when the rental company itself should be a liability target. From there, we cover what to do if you were in a wreck involving a rental car, how to bring an insurance claim and file a lawsuit against the rental agency, and why you'll want a car accident lawyer to represent you.
Basic Liability Rule in Rental Car Accident Cases
In most states, the basic car accident legal responsibility ("liability") rule is simple: Liability follows fault. That is, anyone whose fault causes an accident can be on the hook to pay for injuries and property damage. This rule applies to all cases, even those involving rentals.
Usually, that will be one or more careless drivers. But the facts might point to a negligent motorcyclist, bicyclist, or pedestrian. Or maybe the state, or a county or city, shares blame because of a dangerous road condition or a malfunctioning traffic signal. And yes, if you can show that the car rental agency's wrongdoing contributed to cause an accident, it's fair game, too.
There's an important exception to our basic rule when a wreck happens in a no-fault insurance state. There, each person starts by bringing a claim against their own personal injury protection auto insurance. No-fault laws do allow claims and lawsuits against an at-fault driver's liability insurance in cases involving serious injuries. If you were hurt in a no-fault state, ask your lawyer for details.
When Can a Rental Car Company Be Liable?
Keep in mind that our basic liability rule—liability follows fault—also applies to rental car companies. The fact that a company rented a car to a driver who wrecked it, standing alone, doesn't amount to the required fault.
Federal Law Protects Rental Car Companies
Rental agencies have a special federal law that protects them from legal responsibility for rental car accidents. Known as the "Graves Amendment," 49 U.S.C. § 30106(a) (2025) says that unless their own negligence or criminal misconduct played a part, owners of auto rental businesses aren't liable for injuries or property damage arising out of the operation or use of their rental vehicles.
What Did the Rental Company Do Wrong?
To point the finger at the rental company, you must show some wrongdoing on its part. For example, maybe the company negligently rented to a driver who was visibly intoxicated, was underage, or didn't have a valid driver's license.
Some accidents are caused by vehicle defects or improper maintenance. Auto rental companies have a legal duty to make sure the cars in their rental fleet are reasonably safe. That means, for example, responding to manufacturer recalls, doing periodic maintenance checks, and fixing known problems. When failure to repair or maintain a rental car leads to an accident, liability can follow.
The Bar Might Be Set Very Low
In some states, rental car companies are excused from even minimal legal duties that impose few burdens. A recent Connecticut decision illustrates. Enterprise rented a car to a driver named Nogiec. The Enterprise rental agent checked to see that Nogiec had a valid license, as required by state law. Later that day after renting the car, Nogiec—while drunk—hit Stanford, a jogger, causing serious personal injuries.
Stanford sued Enterprise, claiming the company should have run Nogiec's license through a state database and another commercial database to check for driving restrictions. Had Enterprise done so, Stanford said, it would have discovered that Nogiec was restricted to driving vehicles equipped with an ignition interlock device, commonly used to prevent drunk drivers from getting behind the wheel.
A Connecticut appeals court disagreed. Connecticut law required only that Enterprise confirm Nogiec had a valid license. It had no duty to check for restrictions on his driving privileges or to take other steps to check his driving competency. Nothing about Nogiec's physical appearance at the time he rented the car, said the court, suggested he was drunk or otherwise unfit to drive.
What to Do Following a Collision With a Rental Car
After any auto accident, your first steps should be to:
- check yourself and others for injuries, and
- call 911 to get first responders on the scene as needed.
Note that in most states, you must notify police when an accident causes injuries or the vehicle damage exceeds a certain amount—usually $500 or $1,000. If you're unsure, call to be on the safe side.
If police respond, don't leave the scene until you've been cleared to go by the officer in charge, unless you're taken for medical care by EMS. Take photos of the vehicles and the scene, but be sure not to interfere with law enforcement, firefighters, or paramedics. Exchange contact and insurance information with all other drivers, and get contact information for any witnesses, too.
Notify Your Auto Insurer
Your car insurance policy requires you to notify the company after an accident, often within a few days. Do this as quickly as you can, even if you think the collision wasn't your fault. Start with a call to your agent. Follow that with a report on the company's accident reporting webpage or app. Your insurer will investigate, and might be able to provide details and information you don't have.
Collect Records, Pictures, and Documents
Should you decide to pursue claims for compensation ("damages"), you'll need records, photos, and other documents to prove your case. Here are some of the most important things to gather:
- pictures and videos of the crash scene (including surveillance videos) and the damages to all vehicles and other property
- photos of your injuries
- your doctor, hospital, therapy, and pharmacy records, along with bills from all providers
- repair estimates for the damages to your car
- documentation of your lost wages or income
- receipts for any related out-of-pocket expenses, and
- a copy of the police report.
Notify At-Fault Parties
Notify all at-fault parties that you're bringing claims against them. For drivers, do this by sending their auto insurance companies a claim notice letter. Send the letter directly to any driver who wasn't insured at the time of the wreck.
If you're planning to go after an auto rental company, get online and find a link to their claim reporting page. Follow the instructions there, but resist the temptation to provide lots of detail. They need to know when and where the collision happened, that you were injured, that your car was damaged, and that you plan to bring a claim. Save the rest for later.
Finally, even if you provide notice via the rental agency's website, send a follow up letter, too.
Claims and Lawsuits Against Rental Car Companies
When it comes to collecting compensation for your injuries, a car rental company is no different than any other responsible party. You start the process with an insurance claim. Chances are, your claim will settle. If not, you need to decide whether to go to court.
Insurance Claims
Once you've collected documents and records and put the company on notice that you're bringing a claim, you're ready to kick off settlement talks. You do that with a demand letter, describing the facts, how the accident happened, why the rental company is to blame, and your injuries and damages. The letter concludes with a demand to settle your claims for a specific sum of money.
Here are sample demand letters for personal injury and vehicle damage claims. They're driver-against-driver demands but you can modify the facts so they're driver-against-rental company.
What Kinds of Car Accident Damages Should You Ask For?
If you win your case, you'll collect compensatory damages. As the name indicates, these are meant to compensate you for your injuries and losses. Compensatory damages fall into two groups: Economic damages and noneconomic damages.
- Economic damages. Economic damages reimburse you for losses that come out of your (or your insurance company's) pocket. Medical bills, lost wages and benefits, medical equipment expenses, and auto repair costs are typical examples.
- Noneconomic damages. Noneconomic damages pay for losses that aren't directly out of pocket. Included here are injuries like pain and suffering, emotional distress, and loss of enjoyment of life.
Learn more about car accident damages, and see the results of our reader survey about car accident payouts.
Filing a Lawsuit
If settlement negotiations don't succeed, you'll need to decide whether it makes sense to file a lawsuit. If you haven't already, this would be a good time to speak to an experienced lawyer. Lawsuits are time consuming and expensive. Before heading down that road, make sure you have a viable claim against the rental agency so you're not just throwing good money after bad.
You start a lawsuit by filing a document called a complaint. The car rental company—called the "defendant" in court—will respond with an answer that typically denies most or all of your claims. Don't be upset by this—it's standard court procedure. From there, your case will enter the "discovery" phase. During discovery, each side gets a chance to learn about the facts, claims, and defenses the other will rely on if the case goes to trial.
A lawsuit can settle at any point in this process, and many do. If there's no settlement, then about a year after the case was filed, give or take a few months, you'll go to trial. Jury trials can be unpredictable. And even if you win and the court orders the defendant to pay money to you, there's likely to be an appeal. Depending on court backlogs, an appeal can add six months to a year to the process.
Here's more about filing a lawsuit.
If You Rented the Car, You'll Probably Have to Arbitrate Your Case
You likely won't have the option to sue the rental company in court if you're the one who rented the car. Why? Companies hate being sued. Lawsuits are a good way to make their misbehavior a matter of public record. Conveniently, federal law gives them an out. It's called mandatory arbitration.
As a condition of renting you a car, most of the major rental agencies require you to agree to resolve your differences in a private arbitration forum, out of public view and away from the media. Refuse these terms and the company will refuse to rent you a car. Here, as examples, are waiver and arbitration clauses used by Hertz, AVIS, and Alamo.
How a Lawyer Can Help
How can a car accident lawyer help your case? Among other things, an attorney will investigate the facts and review applicable state law to make these crucial determinations:
- whether there are facts, provable in court, to hold the car rental agency accountable
- the legal theories that might be used
- when there are multiple defendants—as there almost certainly will be—what the rental company's share of liability is likely to be
- a range of probable values for your case, and
- whether, taking all these factors (and more) into account, it makes sense to name the company as a defendant.
The car rental company will be represented by seasoned insurance adjusters and lawyers. Don't expect them to roll over just because you threaten to sue. Chances are you don't have the negotiating experience or understanding of the law to go toe-to-toe with them. A knowledgeable injury lawyer has been down this road before, and can handle their hardball tactics.
Long story short: Your best chance of a successful result will come from having a car accident attorney in your corner. When you're ready, here's how to find an attorney who's right for your case.