Who is responsible if an accident occurs after renting out a car?

2 Answers
McLandon
07/29/25 1:38am
When a car rented to someone else is involved in a traffic accident, the liability for compensation generally falls on the actual controller of the vehicle. However, if the owner of the motor vehicle is at fault in lending the car—for example, knowingly renting it to someone without a valid driver's license—they should bear corresponding compensation liability. According to Article 1 of the "Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Road Traffic Accident Cases," if a motor vehicle causes damage in a traffic accident and the owner or manager of the motor vehicle is found to be at fault under any of the following circumstances, the People's Court shall determine their liability for the damage and apply the provisions of Article 49 of the Tort Liability Law to ascertain their corresponding compensation liability. These circumstances include: knowing or should have known that the motor vehicle had defects that contributed to the accident; knowing or should have known that the driver lacked a valid driver's license or the appropriate driving qualifications; knowing or should have known that the driver was under the influence of alcohol, narcotics, or other controlled substances, or had a medical condition that impaired safe driving; or any other behavior that should be deemed as fault on the part of the owner or manager of the motor vehicle.
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PaigeDella
08/12/25 5:44am
As someone who frequently handles car rental matters, I believe the responsibility for accidents that occur after renting a car depends on the rental agreement and specific circumstances. According to standard contracts, the renter is responsible for the vehicle during the rental period. If an accident is caused by the renter's driving negligence, such as speeding or distraction, they will be liable for repair and compensation costs. Rental companies usually provide basic insurance, but it often comes with a deductible of several hundred dollars, which the renter may need to cover themselves. If the accident is caused by a third party, such as being hit by another vehicle, the responsibility shifts to the other party, and their insurance will cover the damages. Additionally, if the accident is due to a vehicle malfunction, the rental company may also be liable. It is advisable for renters to carefully read the terms before signing the contract, purchase comprehensive insurance to reduce risks, and report any accidents immediately to both the rental company and insurance provider to ensure prompt resolution and avoid future disputes. Safe driving habits are the most effective preventive measure.
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