Rental Car Insurance 2025 Claims Trends Report: More than 58% of Rental Car Damage Claims are Not at Renters’ Fault

Rental car damage claims are often perceived as the result of driver error or negligence. However, our 2025 Claims Trends Report reveals a very different reality. An analysis of rental car insurance claims submitted over the past year shows that more than 58% of reported damage claims were not caused by the renter at all.

This report examines the most common claim scenarios, and the financial impact on renters who are often held liable despite having no direct responsibility. By highlighting these trends, the report aims to help travelers make more informed insurance decisions and better protect themselves against unexpected rental car charges in 2026 and beyond.

While our 2024 claims trends report found that over 60% of the claims were not the result of any fault on the part of the renters, our recent research into 1,710 rental car damage claims has reaffirmed the statistic: over 58% of these claims were not the result of any fault on the part of the renters. In many cases, rental car damages are attributed to factors such as pre-existing issues, poor documentation at the time of rental, or even fraudulent claims made by rental companies after the vehicle was returned. This insight highlights the importance of thoroughly documenting the condition of the car at both pickup and return to protect renters from unwarranted charges, as well as the importance of having proper car hire excess insurance in place.

More than 58% of Rental Car Damage Claims are Not at Renters’ Fault

Types of Rental Car Damage Claims:

Accidents and Collisions

Major collisions and accidents refer to severe incidents involving motor vehicles that result in significant damage, serious injuries, or fatalities. These events often occur at high speeds, involve multiple vehicles, or involve a collision with a substantial object. Major accidents typically cause extensive structural damage to vehicles. This may involve crumpled car frames, totalled vehicles, or critical failures in mechanical components.

According to our research, 23% of the claims were for major collisions and accidents (compared to 20.39% in 2024). It can be at driver’s fault such as “We were driving on a narrow road, and while passing another vehicle, our side mirror was hit and damaged. Or not at driver’s fault such as this case: “my rental car rolled backwards while parked and hit another car – minimal damage to Hertz car but the other car was impacted”.

The average price charged by rental companies to fix is US$ 882 (compared to U$1,169 in 2024). The highest claim for a collision damage seen by CarInsuRent is US$ 4,452 (compared to US$ 4,072 in 2024).

Rental Audi A8 Collision

Car broken into

It’s an unfortunate situation when you return to the vehicle and find out that the window on the drivers side is shattered, car covered in glass, and someone  tried to steal something. According to our study, 2.91% of our claims relate to the damage associated with the break in.

Rental car broken into

Paint Damage and Scratches

Paint damage and scratches are common types of car damage and represent 56.7% of the claims (compared to 63.1% in 2024). Despite renters’ best efforts, scratches on your rental car are almost inevitable. This type of damage usually occur during parking (self-damage) or while the car is parked (“my rental car was hit while parked”).

When dealing with paint damage and scratches, we divide it to 3 categories:

1. The driver scratched the car while he parked the vehicle (31%)
2. The car was scratched while it was parked (40%)
3. The renter was charged for a pre-existing scratch (29%).

As per the 3rd category, unfortunately, it is a know bad practice of some rental companies to charge clients for pre-existing damage. When the client file a claim for damage that he didn’t cause and didn’t see before he returned the vehicle, we ask them if the rental company’s representative spotted the damage immediately. When the answer to this is positive, we assume that the tiny small damage existed and wasn’t marked on the rental agreement. While the cost of “fixing” pre-existing damage is US$ 341 on average (compared to US$ 223 in 2024), the cost of fixing real scratches caused by drivers is US$ 602 on average (compared to US$ 623 on 2024).

Rented Skoda Scala scratched while parked

Rim and tire damage

Rim and tyre damage represent 14% of reported issues in rental car claims. This category includes flat tyres as well as scuffs, scratches, or cracks on wheel rims, and often leads to disputes between renters and rental companies.

Wheel rim scuffs are particularly problematic. In many cases, the damage is pre-existing and may not be clearly documented at vehicle pickup. Minor scuffs can be difficult to notice, especially in low light or when the vehicle is already worn. In other cases, rim damage may occur during routine parking, such as contact with a curb – often unintentionally and at low speed. Despite the minor nature of such damage, repair or replacement costs charged by rental companies can be disproportionately high. The average cost of a claim related to fixing the wheel rim is US$ 493.

Flat tyres present a different challenge. Many modern rental vehicles are supplied without a spare tyre, relying instead on sealant kits or roadside assistance. When a flat tyre occurs and cannot be repaired on the spot, the vehicle often needs to be towed, resulting in additional costs beyond the tyre itself. These may include towing fees, immobilization charges, and lost-use costs, significantly increasing the renter’s financial exposure. While the average cost of fixing / replacing a flat tyre is US$ 163 (including administration fees), when it comes to roadside assistance / towing expensses, the cost of “fixing” a flat tyre might reach US$ 1,315 (!!!).

Together, rim and tyre incidents highlight a common gap between renter expectations and rental company practices, making them a key area of risk for travelers without appropriate coverage.

Damage to tyres cost on average US$ 309 to repair (compared to US$ 306 in 2024), as in many cases the renter need to use roadside assistance services. The highest claim for tyres’ damage seen by CarInsuRent is US$1,315. In this particular case, several roadworks were carried out and it was possible to notice a lot of metal scraps and nails on the road.  The next morning, when the driver arrived to the car , he noticed that the air had gone down in 3 tires. In 2 of them, there were several nails that had entered the tires when he drove on the road.

Rental car wheel and rim damage

Weather-related vehicle damage

Weather-related vehicle damage refers to harm caused to a car due to exposure to extreme or harsh weather conditions. Some common types include:

1. Flood Damage: heavy rains or flooding can lead to water entering the car, damaging the engine, electrical systems, and interior upholstery;
2. Hail Damage: hailstorms can cause dents, cracks, and scratches on a car’s exterior;
3. Wind Damage: high winds can blow debris, such as tree branches or gravel, against vehicles, leading to scratches, dents, or broken glass).

Weather related vehicle damage are most likely to occur in places like Iceland where clients “Just entered the snow pile, caused by the road freezing and strong winds”.

According to our study 0.97% of the claims reported are related to weather with an average cost of US$ 543.

Windshield damage

Windshield damage refers to any physical harm to the car’s front glass, which can compromise visibility and safety. Common types of windshield damage include Chips, which are small, localized areas of damage caused by debris such as rocks or pebbles and Cracks, which are larger lines of damage that spread across the glass.

In 99% of the cases, this damage is not at drivers fault, yet 6% of the claims that we dealt with were for windshield damage. The average price charged by rental companies to fix is US$ 709 (compared to U$ 769 in 2024).

Rental car windshield damage

Lost key

There are no industry-wide statistics on car rental lockouts. According to our analysis less than 1 percent (0.97%) of our clients reported that they were locked out of their cars and had to call the company for help.

The Influence AI-Assisted Vehicle Inspection Systems on Claim Patterns.

According to our analysis, 58% of rental car damage claims are not attributable to renter fault, with a growing share of disputes involving pre-existing or non-visible damage. These include minor surface marks, micro-scratches, or inconsistencies that may only be detectable under specific lighting conditions or through image-based comparison systems.

This trend aligns with the increasing use of advanced inspection technologies by major rental providers, including Hertz and SIXT. While these systems are designed to improve accuracy and efficiency, they may also contribute to a rise in claims involving damage that renters did not observe during the rental period.

For a detailed breakdown of how these systems work and where disputes may arise, see:

• Hertz AI damage detection system – what renters need to know
• SIXT AI damage detection – what renters need to know 

As AI-driven inspection becomes more widespread, the gap between system-detected damage and renter awareness is emerging as a key friction point in the claims process.

Here’s What to Do When You Rent a Car:

• Photograph any damage: Capture all dents, scratches, and marks on the body, interior, wheels, and windows before driving away. If a damage claim arises later, having these pictures can prove that the damages existed beforehand. It’s common to find some pre-existing damage unless the car is brand new.
• Request documentation: Ask the rental employee to officially record all visible damage before you leave the lot.

If you didn’t document the damage initially, follow these steps:

• Request time-stamped photos: Ask for photos taken just before you drove off the lot. This helps confirm whether any previous renter or an employee caused damage before you took possession.
• Request post-return photos: Obtain time-stamped photos taken immediately after you returned the car to ensure no damage occurred afterward.
• Request a rental history: Ask for a record showing all rentals of that car between your return and the date of the damage claim letter. If the rental company delayed the claim, they should prove that you were responsible for the damage, considering the car was rented multiple times since your return.

CarInsuRent Rental car claim statistics – 2025

Final Thoughts

In conclusion, understanding rental car damage claims is crucial for protecting yourself against unfair charges. Our research, based on 1,710 claims, shows that more than 58% of these claims are not the renter’s fault. These findings challenge common assumptions held by renters, rental companies, and insurers alike. Many claims stem from factors outside the driver’s control – such as pre-existing damage, vandalism, third-party incidents, automated damage detection systems, and administrative discrepancies at vehicle return. This highlights the importance of thorough documentation before, during, and after the rental period. Whether you’re taking photos or asking for time-stamped evidence, being proactive in recording the condition of the car can help you avoid costly disputes. Always make sure to communicate clearly with the rental agency and keep all relevant records to protect yourself.

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