Renting a car is usually straightforward — choose your vehicle, sign the agreement, and start your trip. However, one important question remains the same whether you are renting a car for a holiday, business trip, or weekend getaway:
Who pays if the rental car is damaged or involved in an accident?
A recent court ruling in the United States involving one of the world’s largest car rental companies, Hertz, has once again brought this issue into the spotlight. While the case is specific to the U.S. market, it raises questions that are highly relevant for travelers across Europe and around the world.
Why Did This Case Attract So Much Attention?
The case focused on the role of rental car companies when they offer additional protection products and insurance coverage to customers during the booking process.
The court ruled that car rental companies should not automatically be treated as insurance providers simply because they offer optional protection packages to renters.
Although the ruling does not directly affect European rental markets, it serves as an important reminder that customers should understand exactly what their rental agreement covers and what financial responsibilities they may face in the event of an accident or damage.
What Does Standard Rental Car Insurance Cover?
Most rental vehicles include some form of basic insurance coverage, but this rarely means that the customer is fully protected against all costs.
In many cases, renters remain responsible for an excess or deductible amount if damage occurs during the rental period.
Typical examples include:
- scratches or dents on the vehicle body;
- damage to bumpers or doors;
- cracked windshields;
- damaged wheels or tires.
Even when the vehicle is insured, the customer may still have to pay part of the repair costs up to the amount specified in the rental agreement.
What Are CDW and LDW?
When booking a rental car, customers often encounter various abbreviations that can be confusing.
CDW (Collision Damage Waiver) limits the renter’s financial liability for damage to the vehicle.
LDW (Loss Damage Waiver) generally provides broader protection and may include both damage and theft coverage.
It is important to remember that coverage conditions vary between rental companies and countries, which is why reading the rental agreement carefully before signing is always recommended.
Is Additional Coverage Worth It?
There is no universal answer.
For short rentals in familiar locations, some travelers prefer to accept the risk and decline additional coverage.
For longer journeys, unfamiliar roads, busy cities, or mountain destinations, extra protection can provide valuable peace of mind.
Many travelers see the additional cost as protection against unexpected expenses that could otherwise reach hundreds or even thousands of euros.
Does Your Credit Card Provide Coverage?
Some premium credit cards include rental car insurance benefits.
However, this does not automatically mean that every type of damage or situation will be covered.
Restrictions often apply regarding:
- the country where the vehicle is rented;
- the rental duration;
- the type of vehicle;
- the payment method used for the booking.
Before relying on credit card coverage, it is advisable to review the terms and conditions provided by your bank or card issuer.
What Should You Do Before Driving Away?
Regardless of the country or rental company, a few simple steps can help you avoid costly disputes later:
- take photos of the vehicle from all sides before leaving;
- inspect the car for existing damage;
- ensure all scratches and defects are recorded in the inspection report;
- understand the amount of your deductible or excess;
- check which situations are excluded from the insurance coverage.
Final Thoughts
The legal dispute involving Hertz highlights an issue that remains one of the biggest concerns for rental car customers worldwide.
Whether you are renting a vehicle for a holiday in Greece, a business trip in Germany, or a family vacation in Spain, the best protection is understanding exactly what your rental agreement includes and what your responsibilities are.
An informed customer makes better decisions and avoids unpleasant surprises after the trip is over.