Rental Car Insurance Claims Trends Report: More than 60% of Rental Car Damage Claims are Not at Renters’ Fault

PUBLISHED ON Jan, 20 2025

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The terms of a rental agreement that require a renter to return the vehicle in the same condition as when it was rented are aggressively enforced. Understanding the complexities behind these claims can help renters navigate this issue more effectively.

Our recent research into 1,347 rental car damage claims has uncovered a startling statistic: over 60% 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 60% of Rental Car Damage Claims are Not at Renters’ Fault

More than 60% 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, 20.39% of the claims were for major collisions and accidents. It can be at driver’s fault such as “I caused the damage while driving on the highway, getting stuck in a fence while driving”. Or not at driver’s fault such as this case: “I had to swerve to avoid a small animal which ran out from the right side of the highway towards the other side. As a result of running over the bushes, the right headlight and right side of the front bumper were badly scratched and the cover for the right headlight washer was lost”.

The average price charged by rental companies to fix is US$ 1,169. The highest claim for a collision damage seen by CarInsuRent is US$ 4,072.

Rental car crashed and totaled

Rental car crashed and totaled

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.

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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.

Paint Damage and Scratches

Paint damage and scratches are common types of car damage and represent 63.1% of the claims. Despite your 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 (45%)
  2. The car was scratched while parked (13%)
  3. The renter was charged for a pre-existing scratch (53%).

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. The cost of “fixing” pre-existing damage is US$ 223 on average compared to US$ 623 on average for a scratch while parking.

Rental car scratched while parked

Rental car scratched while parked

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Rim and tire damage

can result from various factors such as impacts, wear, and poor maintenance, and they can significantly affect the vehicle’s safety and performance. Common types of rim damage include cracks, bends, and chips caused by impacts with potholes, curbs, or debris. Tires can be damaged in multiple ways, including punctures, sidewall cuts, bulges, or abnormal wear.

Damage to tyres cost on average US$ 306 to repair, as in many cases the renter need to use roadside assistance services. The highest claim for tyres’ damage seen by CarInsuRent is US$786.

Rental car wheel and rim damage

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).

According to our study 0.97% of the claims reported are related to weather with an average cost of US$ 743.

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 5.83% of the claims that we dealt with were for windshield damage. The average price charged by rental companies to fix is US$ 769.

Rental car windshield damage

Rental car windshield damage

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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.
Rental car claim statistics

Rental car claim statistics

Final Thoughts

In conclusion, understanding rental car damage claims is crucial for protecting yourself against unfair charges. Our research, based on 1,347 claims, shows that more than 60% of these claims are not the renter’s fault. 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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Frequently Asked Questions (FAQ)

Can I buy a plan for just one day?

Yes. Insurance for a single day is available.

Can I buy a plan for part of my rental only?

No. We provide a single journey plan. You are covered from the time you pick up the rental car up to the time you return it or on the last date written on your Certificate of Insurance, whichever comes first.

Can I buy a plan when I pick up my rental car?

No. You should purchase a policy before starting your travel.

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