Rental Car Accidents in Tennessee: What Drivers Need to Know
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Rental car accidents in Tennessee can create confusion about liability, insurance coverage, and financial responsibility. Many drivers are unsure whether their personal auto insurance, the rental car company, or another driver’s insurance will pay for damages. Understanding Tennessee’s at-fault laws, rental agreements, and available insurance coverage helps renters make informed decisions.
In this blog, you will learn what to do after a rental car accident in Tennessee, how insurance coverage works, and why working with an experienced Memphis car accident attorney can help you protect your rights and recover fair compensation.
Legal and Insurance Landscape in Tennessee
Understanding the legal and insurance landscape helps renters handle rental car accidents correctly in Tennessee.
Tennessee Is an At-Fault State
Tennessee follows an at-fault insurance system. The driver who causes the car accident is financially responsible for the damages. This includes rental car accidents involving personal vehicles or rental cars. The at-fault driver’s insurance company covers the losses up to the policy’s liability limits.
Minimum Liability Insurance Requirements
Drivers in Tennessee must carry minimum liability insurance coverage as outlined in Tenn. Code §55-12-102. The required coverage limits are $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $25,000 for property damage. This ensures that drivers, including those operating rental vehicles, can provide coverage for other drivers involved in a collision.
Financial Responsibility and Proof of Insurance
Tennessee law requires proof of financial responsibility under Tenn. Code §55-12-139. All drivers, including renters, must be able to show valid insurance information when requested by law enforcement after an accident. Failure to provide proof can result in fines or suspension of driving privileges.
Statute of Limitations for Claims
In Tennessee, the statute of limitations for personal injury claims is one year under Tenn. Code §28-3-104. Property damage claims have a three-year limit under Tenn. Code §28-3-105. Drivers involved in rental car accidents should file insurance claims or legal actions promptly to preserve their rights.
Uninsured and Underinsured Motorist Coverage
Tennessee law requires that every personal auto insurance policy include uninsured motorist coverage unless the policyholder rejects it in writing. This protection, detailed in Tenn. Code §56-7-1201, can apply if a rental car accident involves an uninsured or underinsured at-fault driver.
Why This Matters for Rental Car Accidents
Understanding these insurance requirements ensures that renters have adequate insurance coverage before signing a rental agreement. Knowing how Tennessee’s at-fault rules apply helps renters determine which insurance provider—personal auto insurance, rental car company, or the at-fault driver’s insurance—will handle the claim.
Rental Car Contracts & Disclosures in Tennessee
Understanding rental car contracts and required disclosures helps renters avoid costly mistakes after a rental car accident in Tennessee.
The Role of the Rental Agreement
The rental agreement outlines the renter’s financial responsibility for the rental vehicle. It details insurance coverage, liability terms, and how claims will be handled if a car accident occurs. Renters should review this agreement carefully at the rental car counter before signing.
Disclosure Requirements Under Tennessee Law
Tennessee law requires rental car companies to provide clear information about insurance coverage and damage waivers. Under Tenn. Code §56-7-1110, rental companies must state on the first page of the agreement whether the offered insurance or collision damage waiver overlaps with the renter’s personal auto insurance. The law also allows renters to require that claims be submitted to their personal auto insurance company as their agent.
Rental Company Liability and the Graves Amendment
Most rental car companies are protected from automatic liability under the federal Graves Amendment. This means a rental car company is not responsible for damages caused by the renter unless the company was negligent in vehicle maintenance or knowingly rented to an unlicensed driver. Renters are generally held financially responsible for their own actions or those of authorized drivers listed in the rental agreement.
Additional Fees and Financial Responsibility
Rental companies may seek recovery for loss of use, towing, administrative fees, and repair costs when a rental car is damaged. These fees are often outlined in the rental agreement. Renters should confirm whether their personal auto insurance, rental car insurance, or credit card coverage provides protection against these costs.
Why Reviewing the Contract Matters
Reading and understanding the rental contract helps prevent disputes with the rental car company or insurance provider after an accident. A renter who understands their liability coverage, rental car insurance options, and the claims process will be better prepared if an accident happens.
Types of Insurance That May Apply in a Rental Car Accident
Several types of insurance coverage can apply after a rental car accident in Tennessee. Understanding how these policies interact helps renters know which insurance provider covers which costs.
Personal Auto Insurance Policy
Many drivers have personal auto insurance policies that extend to rental vehicles. This coverage may include liability, collision, and comprehensive protection. The renter’s personal auto insurance company usually acts as the primary insurance provider unless the policy states otherwise. Renters should review their personal auto insurance policy before driving a rental car to confirm coverage limits and exclusions.
Rental Car Company Coverage
Rental car companies offer optional insurance at the rental counter. Common choices include a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW), which can cover repair or replacement costs for a damaged vehicle. Additional options may include Supplemental Liability Insurance (SLI), Personal Accident Insurance, and Personal Effects Coverage. These plans provide extra protection but may duplicate coverage already available through the renter’s own insurance.
Credit Card Insurance Benefits
Some credit card companies provide rental car insurance when the card is used to pay for the rental. This protection often applies as secondary coverage after the renter’s personal auto insurance. Coverage limits and terms vary depending on the credit card issuer. Renters should contact their credit card company to confirm if rental car coverage applies and what documentation is needed to file a claim.
At-Fault Driver’s Insurance Coverage
If another driver caused the rental car accident, the at-fault driver’s insurance company may cover damages under their liability insurance policy. Tennessee’s at-fault system holds the responsible driver liable for property damage and personal injury. Renters should collect the other driver’s insurance information and file a claim as soon as possible.
Uninsured and Underinsured Motorist Coverage
When an at-fault driver does not have adequate insurance, uninsured or underinsured motorist coverage can help. This coverage, required under Tenn. Code §56-7-1201 unless rejected in writing, may come from the renter’s personal auto insurance policy. It can cover medical costs and other losses that the at-fault driver’s insurance does not pay.
Why Insurance Coordination Matters
Rental car accidents often involve multiple insurance providers. Coordinating coverage between a personal auto insurance company, rental car company, and credit card benefits ensures that all potential claims are addressed. Understanding which policy applies first prevents coverage gaps and reduces the risk of unexpected financial responsibility.
Step-by-Step Actions After a Rental Car Accident
Knowing what to do after a rental car accident in Tennessee helps protect your legal rights and ensures that insurance coverage applies correctly.
Check for Injuries and Call for Help
The first step is to check for injuries and call 911 if anyone is hurt. Seek medical attention immediately, even for minor accidents. Tennessee law requires drivers to report any accident involving injury, death, or property damage exceeding $50 to local police under Tenn. Code §55-10-106.
Document the Accident Scene
Gather as much information as possible at the accident scene. Take photos of all vehicles, license plates, and visible damage. Collect names, driver’s license numbers, and insurance information from all drivers involved. Note the time, location, and weather conditions. These details support your insurance claim and can help if liability is disputed later.
Notify Law Enforcement and Obtain a Police Report
Contact local police or the Tennessee Highway Patrol to create an official accident report. Request a copy of the report for your records. The police report provides essential details for the insurance company and can verify which driver was at fault.
Inform the Rental Car Company
Call the rental car company as soon as possible to report the accident. Follow the instructions listed in your rental agreement. Provide the accident report number and details of the damaged vehicle. The rental company will guide you through its claims process and advise whether to return or exchange the vehicle.
Notify Your Insurance Provider
Contact your personal auto insurance company promptly after the accident. Report all relevant information, including the rental car company’s details, other driver’s insurance, and any police report numbers. Early notification helps avoid claim delays and confirms whether your personal auto insurance policy provides coverage for the rental vehicle.
Contact Your Credit Card Company if Coverage Applies
If you used a credit card with rental car insurance benefits, inform the credit card issuer immediately. They may require documentation such as the rental agreement, police report, and proof of payment. This step helps activate any secondary insurance coverage that can cover remaining costs.
Keep All Records and Receipts
Save every document related to the accident, including receipts for towing, repairs, and medical costs. These records support your insurance claim and can help prove financial responsibility.
Consult a Car Accident Lawyer if Needed
If the insurance companies dispute fault, deny coverage, or delay payment, contact a Tennessee car accident lawyer. A qualified car accident attorney can help file insurance claims, negotiate settlements, and ensure that you receive proper compensation under Tennessee law.
Contact an Experienced Memphis Car Accident Lawyer Today!
If you were involved in a rental car accident in Tennessee, our team at Mogy Law Firm is ready to help. A skilled Memphis car accident attorney can review your insurance coverage, handle claim disputes, and pursue full compensation for your losses.
Contact us at (414) 334-5472 for a free case consultation today!
