You can be the victim of a rental car accident, and with it come physical, emotional, and financial challenges. In this situation, you can sue the at-fault driver and sometimes even the rental car company for negligence. You might have a claim against the company if their negligence caused the incident, for example, if they rented the vehicle to someone unfit through negligent entrustment.
Liability in rental car accidents can be complex. Rental companies sometimes have special protections from the law. These protections are provided under the Graves Amendment and Nevada’s contributory negligence, all discussed below. The rental agreement terms also influence whether you can recover compensation from the business. Knowing your rights and who you can sue for damages is important, given these complexities. This guide will get you started.
Pursuing a Negligence Claim After Being Involved in a Rental Car Accident In Nevada
When you want to file a negligence lawsuit after being involved in an accident with a rental car in Nevada, you should understand some of the leading legal principles to determine liability. These are:
Duty of Care
Under Nevada law, a duty of care is imposed on drivers of all vehicles, including rental cars. Every driver has a duty that requires “reasonable care” not to cause harm to others.
On the other hand, rental car companies must ensure their cars are safe and not rented to drivers who cannot drive safely. They should check that renters have a valid license and seem fit. The rental company could be liable if they fail to comply with these obligations.
Breach of Duty of Care
When the driver or the rental company does not act reasonably, their actions are deemed a breach of duty. A driver might breach the duty of care by speeding, driving recklessly, or being distracted, for example, by texting. Another common offense is driving under the influence.
A breach often involves negligent entrustment on the part of rental companies. This refers to a rental company renting its vehicle to an unfit driver. For example, the rental company rents the car to a driver without a valid driver’s license. Another example of a breach would be poor car maintenance. In case of any mechanical fault, like brake failure or a tire blowout, resulting from the company’s negligence, the company could be liable for the accident.
Causation
Another key factor in a negligence lawsuit is causation. You must establish that the breach of duty caused the accident and your injuries to win your case. This means there must be a clear connection between the defendant’s conduct and the harm. You must prove that the at-fault party’s negligence caused the accident.
For example, if a driver ran a red light and hit your car, you must prove that the driver’s breaking of the law caused the accident. Similarly, if a mechanical defect caused the accident, you will need to show that the fault leading to the malfunction was due to the rental company’s failure to keep the vehicle well-maintained.
Damages
Once duty, breach, and causation have been established, you must show damage or harm from the accident. The damages include medical bills, lost earnings, property damage, pain, and suffering. The damages could also include the loss of use of your car, which creates further strain.
Note: You have two years after the accident to pursue the lawsuit.
Challenges to Expect When Seeking Compensation for Injuries Caused in a Rental Car Accident
Filing a negligence claim may seem straightforward after an accident in a rental car. However, in Nevada, two critical issues may complicate this, namely:
- Nevada’s comparative negligence law
- The Graves Amendment
Knowing how these laws affect your case is in your best interest when considering compensation for injuries and damages. Without this knowledge, you could undervalue your claim or face other hurdles to recovery.
Nevada’s Comparative Negligence Law
Nevada follows a modified comparative negligence standard, stating that the fault is apportioned among all parties involved in an accident. Your share of fault should be less than 50% to recover damages.
You may still recover damages if your fault is equal to or less than 50%, but the amount will be reduced in proportion to your fault. For instance, 30% fault means receiving 30% less compensation due to the accident. If the court assigns you a 51% or more fault, you will be barred from receiving any compensation.
Comparative negligence becomes very important when a rental car is involved in an accident. This is because it is not always clear who is at fault. The rental car driver, another driver, or even the rental company may share some fault in the accident.
If the rental car driver was distracted, speeding, or otherwise negligent, the driver bears most of the fault. You could also be at fault if you are the crash victim and engaged in risky behavior, like running a red light or tailing your car. Furthermore, Nevada law demands a thorough examination of each party’s actions leading up to the crash to determine fault.
The Graves Amendment and Rental Company Liability
The Graves Amendment came into effect in 2005. It limits the liability of rental car companies for accidents caused by the cars they rent out. According to this law, rental companies are not responsible for any damage because they own the vehicle connected to the damage (vicarious liability). That is, the rental agency can probably avoid liability for a rented vehicle accident if they:
- Complied with all legal requirements
- Properly maintained the vehicle
- Rented it to a competent driver
However, the rental company will not be immune if it is negligent in some way.
You must create a compelling and proof-based case to overcome these legal hurdles. Start by documenting everything related to the incident. Take plenty of pictures of the scene, damage to cars, and your injury. Go to the doctor immediately, as doing so can protect your health and create a medical record supporting your damages. Moreover, if you believe the rental company bears some responsibility, request maintenance records on the car.
Damages You Can Recover in the Lawsuit
When you file a negligence claim in Nevada, you generally seek compensatory damages to recover the tangible and intangible losses the accident caused you. These damages cover medical expenses, rehabilitation costs, lost wages, property damage, and non-economic harms, including pain and suffering or emotional distress. The goal is to compensate and restore you to how things would have been had the accident not occurred. However, a few unique factors can complicate your claim. In particular, the fact that your accident involved a government employee or your claim will involve punitive damages.
Nevada’s sovereign immunity laws limit lawsuits when the at-fault party is a government employee acting within the course of his/her employment. Sovereign immunity protects governmental bodies and employees from unreasonable financial damages, which limits damages awarded in a case to a maximum of $100,000 per claim. Simply put, if your actual losses exceed the cap, you cannot recover damages any more than the cap, even though the cap can be frustrating. It ensures that public money, often diverted to essential services, is protected from large payouts. Absent this protection, government operations will be significantly disrupted.
However, you are not totally without recourse. You must adhere to stringent procedures, including filing a formal notice of claim within a specific period, to win a claim against the government. If you do not meet these deadlines or follow procedural rules, your case can be dismissed, whether or not it has merit. Thus, legal help is necessary with claims involving government workers or employees.
Unlike compensatory damages, punitive damages do not aim to reimburse you for your losses. Instead, they are imposed on the defendant to punish them and deter misconduct. Under Nevada law, you can pursue punitive damages if the party responsible for your injuries acted intentionally, recklessly, or with gross negligence. This includes the cases in which the driver at fault was drunk, driving aggressively, or blatantly ignored traffic laws and ended up hurting you badly.
In Nevada, the law places limits on punitive damages to ensure that these damages do not become excessive, as seen below:
- If the compensatory damages are $100,000 or less, then punitive damages must not exceed $300,000
- If the compensatory damages are at least $100,000, the punitive damages shall be capped at three times the compensatory award.
These caps balance punishing wrongful conduct and avoiding excessive financial burdens on defendants.
Potential Defendants in the Lawsuit
In Nevada, rental car accidents can lead to lawsuits against several parties, all of whom could share fault in the case. Depending on the facts of the case, here are the main parties you may want to name in your case:
The At-Fault Driver
Usually, the driver at fault for the accident is the main defendant in these cases. The crash could be caused by a negligent driver, one speeding, one driving under the influence, or any other violation of the traffic rules. If the operator drove the rental car recklessly or negligently, they could be responsible for the damages.
The Rental Car Company
Sometimes, the rental car company can also share the blame for the accident. An example of negligent entrustment occurs when a company rents a vehicle to someone who the company knows or should know is an unsafe driver. Moreover, the company may be liable if your rented car was poorly maintained or had flaws that led to the accident. Rental companies need to keep their vehicles safe and well-maintained.
The Vehicle Manufacturer or Dealer
If a mechanical failure or a vehicle design defect caused the accident, the car maker or the dealership selling the car could be a defendant in the lawsuit. In this situation, to prove that the defect in the vehicle caused the accident, a product liability claim would need to be brought. This may include problems caused by brakes or airbags and engine malfunctions.
Government Entities or Employees
Sometimes, accidents happen due to bad public roads, faulty traffic lights, or accidents involving government workers. If the accident was caused by a government employee acting within the scope of their job, then you can bring the claim against the government.
However, do not forget about Nevada’s sovereign immunity laws since they limit these claims, including damages and special procedures that must be followed when suing the government.
Other Parties Involved
Besides the main parties named above, other persons and institutions may be or may share liability in particular circumstances. These include:
- Passengers — You could name them as defendants if their actions contributed to the accident, for example distracting the driver.
- Maintenance services — A third-party maintenance company that did not inspect or repair the vehicle properly can be liable if it contributed to the crash.
- Roadside assistance or towing companies — If they improperly towed your vehicle or failed to assist you when needed, these companies could be liable for the accident.
Insurance Companies
Though they are not traditionally defendants, insurance companies are big players in rental car accident lawsuits. If the insurer denies or underpays claims, engages in bad faith claims practices, or fails to provide the coverage stipulated in the rental agreement, disputes can arise. In this case, you can pursue a separate legal action against the insurer for a breach of contract or bad faith tort action.
Who Pays When a Rental Car Accident Occurs in Nevada?
The insurance liabilities can be complicated if you have had an accident involving a rental car.
When an accident is caused by someone driving a rental car, the driver’s personal auto insurance policy will likely be primary coverage for any injuries and damages caused. Drivers in Nevada must have minimum coverage as per law. The coverage must not be lower than:
- $25,000 for the death or injury of one person
- $50,000 for bodily injury or death of two or more persons
- $20,000 for property damage per incident
Under this primary insurance, you can receive compensation for medical bills, repairs to your vehicle, and other damages from the accident. Additional insurance coverage may apply if the driver at fault does not have enough insurance to cover all damages.
Sometimes, when the at-fault driver does not have sufficient insurance, the rental car company’s insurance comes into play. As discussed above, rental companies are usually not vicariously liable under the Graves Amendment. However, the rental company’s insurance could pay for the remaining damages the at-fault driver’s insurance cannot if the rental company is negligent.
If you are in an accident with a rental car and the at-fault driver’s insurance is inadequate, your auto insurance policy can fill the gap. Two fundamental forms of protection could become applicable, namely:
- Uninsured/Underinsured Motorist Coverage (UM/UIM) — If the at-fault driver is uninsured or their coverage is insufficient to cover your losses fully, your insurance will pay for the remaining damages. This includes healthcare fees, lost income, and emotional distress.
- Collision coverage — This helps you if your car is damaged in an accident covered by the policy. It pays for the repairs or replacement of your vehicle regardless of who is at fault.
If you are the driver of the rented vehicle and cause an accident, your personal auto insurance would be the first to pay. Liability insurance protects you if others suffer property damage or bodily injury because of your actions. If your coverage runs out or you lack the appropriate insurance, the rental company’s insurance would cover the excess, depending on the rental agreement’s terms.
When renting a car, some other supplemental coverage options can protect you further, namely:
- Credit card insurance — Many credit cards offer secondary insurance if you charge the rental car to that card. This coverage usually kicks in when your personal auto or rental company’s insurance has been exhausted. Insurance that comes with the card can protect the individual against various issues, including damage, theft, or liability. However, familiarize yourself with the card’s terms and conditions before relying on this option.
- Supplemental coverage from the rental company, specifically:
- Loss Damage Waiver (LDW) or Collision Damage Waiver (CDW) — This policy covers damage to or theft of the rental vehicle, often with no deductible. They essentially waive your financial responsibility for the car’s repair or replacement cost.
- Supplemental Liability Insurance (SLI) — If the liability limit on your insurance policy is low or if you desire extra coverage, this SLI coverage can extend your personal limits.
- Personal Accident Insurance — Some rental agreements can offer coverage for you and your passengers for medical expenses following an accident.
If your vehicle is involved in an accident and is being repaired, rental car reimbursement under your auto policy can help pay for a rental while your car is fixed.
Find a Las Vegas Personal Injury Attorney Near Me
Rental car accidents involve legal complexities beyond physical injuries and financial losses. Dealing with these complexities can be overwhelming. To ensure that you receive the maximum compensation you deserve, you should seek the services of an experienced personal injury attorney who can tackle these complexities properly.
We at Las Vegas Personal Injury Attorney Law Firm have handled rental car accident cases and know what you are going through. Our team will work to protect your rights. We will identify all potential defendants and help you include all damages that need to be included in your lawsuit.
Call us at 702-996-1224 for a consultation today so we can help you get the compensation you deserve.
