Is State minimum liability insurance included in all rentals? And how does it work?

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Oct 18, 2019
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Hi

In Louisiana. So I rented a Enterprise Truck, got the Damage Waiver add-on, no SLP. I think they said they do not do it for Truck rentals, though there is a box on the contract - standard contract for all rentals?

Anyway I caused some damage to a 3rd party vehicle, pretty minor (maybe $500/$1000 at max - no injuries) but they were a contractor in a commercial vehicle so had to go through insurance. No damage to the Enterprise truck. Police made a report. All good until my personal car insurance state they may not cover the incident due to the vehicle being over the weight covered by my policy. So i'm now figuring out what might happen next.

Now I've been told by a few people this means the state minimum liability policy that Enterprise has on the truck should now come into play. Enterprise associates at my branch say no. So I found this forum and you guys seem to have a lot of rental care experience so hoping for a confirmation or a clearer answer.... If it does kick in then how do I contact this insurance to tell them whats going on. And do Enterprise then come after me to be repaid? Reading various things it sounds to me the liability insurance is there as a back up in this sort of case and should mean I don't have to pay anything other than the premium that should have been part of the rental fee - and any damages past the state minimum?


The following is from the contract (my underlining):
Responsibilities to Third Parties. Owner or its affiliate complies with applicable motor vehicle financial responsibility laws as an insured, bond holder, or cash depositor. Except to the extent required by the motor vehicle financial responsibility laws of the applicable state or otherwise by law or this agreement, neither Owner or its affiliate extends any of its motor vehicle financial responsibility or provides insurance coverage to Renter or Renter’s Rep., AAD(s), passengers or third parties through this agreement. If liability insurance or self insurance is available on any basis to Renter or Renter’s Rep., AAD(s) or any other driver and such insurance or self insurance satisfies the applicable state motor vehicle financial responsibility law, then Owner or its affiliate as the case may be extends none of its motor vehicle financial responsibility. However, if Renter or Renter’s Rep and AAD(s) are in compliance with the terms and conditions of this agreement and if the Owner or its affiliate is obligated to extend its motor vehicle financial responsibility to Renter or Renter’s Rep., AAD(s) or third parties, then Owner’s or its affiliate’s obligation is limited to the applicable state minimum financial responsibility amounts. Unless required by law, Owner’s or its affiliate’s financial responsibility shall not extend to any claim made by a passenger while riding in or on or getting in or out of vehicle. Financial responsibility shall not extend to liability imposed or assumed by anyone under any worker’s compensation act, plan or contact.


Thanks!
 
Jun 12, 2019
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#2
The rental company has to provide the state minimum for property damage. Sounds like it will be under that limit. You should be considered an insured under their policy, which generally forbids them from asking for the money back. If they do, ask them where you signed to indemnify the rental co for all costs.
 

Dwayne Coward

Administrator
Staff Member
Director
Apr 13, 2016
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#3
It will depend on what is specified in the rental agreement and what is allowable under State law. In some cases, they may be able to seek reimbursement from the renter (or their personal insurance). If the rental company contacts you to pay, we recommend contacting an attorney in the State that you rented the vehicle to determine your liability. Here is an example of a recent case:

https://www.elliott.org/blog/car-rental-accident-no-insurance/
 
Sep 19, 2015
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Rental companies are often self insured -- ie they pay for it out of their own money -- and then they go after the renter. Was this rental through Enterprise car or Enterprise truck rental?
 
Likes: calihankl
Jun 12, 2019
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#5
I have not been on that side of a claim I just have experience with my insured getting hit by a rental and the renter didn't have their own liability insurance. I knew that ERAC would at least pay the CA state min on the claim and prorate the collision deductible and open an underinsured motorist bodily injury claim if the bill was over 15k. I never knew i
 
Oct 18, 2019
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#8
Thank you everyone so far.
Yes Enterprise Truck Rental.
I think i'm going to give Enterprise Corporate customer service a call tomorrow and let them know the situation and ask about using their minimum liability (so that I can give them the info on the accident). I'll also look into seeing an attorney to go over the contract and see what they say about coverage and reimbursement. I wish it was all a bit more clear cut.