Renting a vehicle is usually a straightforward process: you need to go to a company, choose an available car, sign some paperwork and drive away to your destination. In states like Minnesota, you are protected by specific consumer laws that can come in handy if you happen to be involved in an accident.
Fault and coverage differences
Under state law, your personal auto insurance policy usually applies to a rental car, covering both property damage and liability. Because Minnesota is a No-Fault state, your own Personal Injury Protection (PIP) will usually cover your medical expenses regardless of who caused the crash. However, for vehicle damage:
- If you’re at fault, your collision coverage or the rental company’s Collision Damage Waiver (CDW) will take care of repairs.
- If another driver is at fault, their liability insurance is expected to cover the damages. However, keep in mind that seeking compensation for “Loss of Use” fees from the rental company can be challenging.
If you want extra financial protection from property damage and third party liability, Supplemental Liability Coverage is a good option for you.
What if you are on a business trip?
In Minnesota, when driving a personal vehicle for work, your personal auto insurance usually serves as the main coverage. However, personal policies often exclude business use, potentially resulting in claim denial. In such cases, the employer’s commercial insurance might apply, especially if it includes a “hired and non-owned auto liability” (HNOA) endorsement.
Ask for legal assistance
If you were involved in a car crash, chances are you will have to deal not only with the rental car company but with their insurers, which will possibly complicate matters with payouts and fees. Do not wait and consult a lawyer as soon as you can.