Rental Car Accident Lawyer in Louisville, Kentucky

Reviewed by Larry Forman, Attorney

A rental car accident raises insurance questions that an ordinary crash doesn't. Was the driver covered by the rental company, their own policy or a credit card? Can the rental company be sued? And if the car came from Turo or another app, which of the three or four possible insurers actually pays? Kentucky has specific rules for each of these situations, and knowing them early can keep a valid claim from stalling.

Forman & Associates represents people hurt in Louisville and across Kentucky by rental cars, rental trucks and peer-to-peer shared cars. That includes people who were driving or riding in a rental themselves. Here's how these claims work.

Three common rental car accident situations

1. You were hit by someone driving a rental car or a shared car. The main question is which liability policy covers the renter.
2. You were a passenger in a rental car or shared car. Your PIP benefits usually come from the rental car's coverage, and you may have a liability claim against your driver, the other driver or both.
3. You were driving a rental and someone else caused the crash. You have a claim against the at-fault driver, plus PIP and possibly your own uninsured or underinsured motorist coverage.

Is the rental company liable for a rental car accident?

Usually not just because it owns the car. A federal law known as the Graves Amendment says a company in the business of renting or leasing vehicles isn't liable under state law, by reason of being the owner, for harm caused during the rental. That protection applies only if the company itself wasn't negligent and committed no crime (49 U.S.C. 30106).

That leaves two important openings:

• The company's own negligence. A rental company can still be liable for its own mistakes, such as renting out a car with an unrepaired safety recall, bald tires or failing brakes. If a defect in the vehicle itself caused the crash, see our product liability page.
• Insurance requirements. The Graves Amendment expressly leaves in place state laws that impose financial responsibility and insurance requirements on rental companies (49 U.S.C. 30106(b)). Kentucky requires rental companies operating under a "U-Drive-It" certificate to keep bonds or insurance that provide liability coverage when the vehicle is driven by the renter (KRS 281.626; KRS 281.655). Large rental companies often meet this through self-insurance.

Whose insurance pays?

Liability coverage (pain and suffering, wages and medical bills beyond PIP)

Depending on the facts, several layers may be available to pay for harm caused by the renter:

• The rental company's required coverage or self-insurance
• Supplemental liability insurance the renter bought at the counter
• The renter's own auto policy, many of which extend to rental cars
• Coverage through the renter's employer, if the rental was for work

A credit card's rental benefit usually covers only damage to the rental car itself, not injuries to other people. When several policies apply, their terms decide which pays first. Insurers often argue about it, and that argument shouldn't delay your claim.

PIP (no-fault) benefits

Kentucky's no-fault law looks first to the insurance covering the vehicle you were in, or, if you were a pedestrian, the vehicle that struck you (KRS 304.39-050). In Progressive Max Insurance Co. v. National Car Rental Systems, Inc., 329 S.W.3d 320 (Ky. 2011), the Kentucky Supreme Court applied that rule to a passenger hurt in a rental car. The self-insured rental company, not the renter's personal insurer, was the primary source of basic reparation benefits. See how Kentucky PIP works.

Your own uninsured and underinsured coverage

If you were driving or riding in a rental and the other driver had no insurance or not enough, your own UM and UIM coverage may follow you. See our uninsured motorist and underinsured motorist pages, and uninsured vs. underinsured motorist coverage.

Turo and peer-to-peer car sharing accidents

Apps such as Turo and Getaround let private owners rent out their own cars. Kentucky calls these peer-to-peer car sharing programs and set specific insurance rules for them, effective January 1, 2023 (KRS 365.520). They're different from traditional rental companies and from Uber and Lyft (see our rideshare injury page).

During the car sharing period, from when the trip starts (or the car is delivered) until it's returned:

• The program takes on the owner's liability for injuries and property damage to others, in an amount stated in the agreement. That amount can't be less than Kentucky's minimum liability limits and $10,000 in PIP benefits (KRS 365.522).
• There must be a policy covering both the owner and the driver. It can come from the driver, the program, the owner or a combination. Unless one policy says it's primary, the driver's policy pays first, then the program's, then the owner's.
• If the driver's or owner's insurance lapsed or doesn't provide the required coverage, the program's insurance must pay from the first dollar and defend the claim. It can't wait for another insurer to deny the claim first.
• When there's a dispute over who was driving, or whether the car was returned, and the program can't produce its trip records, the program's coverage takes primary responsibility.
• The owner and the program are generally not liable just for owning or listing the car, consistent with the Graves Amendment (KRS 365.528).

Watch for timing. Kentucky requires these programs to warn that their coverage applies only during the car sharing period. If the driver keeps the car after the trip ends, there may be no coverage (KRS 365.524). Programs must keep records of trip times, pickup and drop-off locations and payments for at least the length of the personal injury statute of limitations. Those records, along with any GPS data, can decide a disputed claim, and they can be obtained through the claims process or a lawsuit.

Rental trucks and vans

Moving trucks, cargo vans and passenger vans rented for a trip are also covered by Kentucky's U-Drive-It rules. Their drivers are often inexperienced with large vehicles, and they cause wide-turn, backing and low-clearance crashes. When a rental truck is driven for a business, the employer and commercial policies may also be involved. See our truck wreck page.

Steps to take after a rental car accident

• Get the rental or trip details. Note the rental company or app, the renter's name and whether the driver was listed on the agreement. Photograph the car, including any barcode or fleet number.
• Get the police report. See how to get a Kentucky accident report.
• Report the claim to every possible insurer, including your own, so PIP benefits start.
• Don't sign anything from a rental company or app without understanding it.
• Ask for preservation of the rental agreement, trip records, telematics and the vehicle itself.

If the driver of a rental or shared car left the scene, see our hit-and-run page. If you were walking or biking, see our bicycle and pedestrian page.

Deadlines

A lawsuit over a Kentucky car crash generally must be filed within two years after the injury, or after the last PIP payment, whichever is later (KRS 304.39-230). Visitors who rented a car while in Kentucky are still bound by Kentucky's deadlines. See our statute of limitations guide.

How Forman & Associates handles rental car accident cases

• Identify every policy layer: rental company, counter coverage, the renter's own policy, employer coverage and, in shared-car cases, the program's coverage
• Demand preservation of trip records, telematics and the vehicle
• Investigate whether the rental company or owner was negligent in its own right, such as unrepaired recalls or worn equipment
• Handle the PIP priority questions so your medical bills keep getting paid
• Prepare the case for trial. Larry Forman has tried 50+ jury trials and won 95% of them.

Learn more about Larry Forman, see our case results (past results don't guarantee a similar outcome), or visit our main car crash page. For a crash that took a life, see our page on fatal car accidents.

Rental car accident FAQs

Can I sue the rental car company if its renter hit me?

Not just because it owns the car. Federal law blocks liability based only on ownership. But the company can be liable for its own negligence, such as renting out a car with a dangerous defect, and its required insurance may still cover the renter.

Whose insurance pays when a rental car hits me?

Often a combination of the rental company's coverage, any coverage the renter bought at the counter and the renter's own auto policy. Your own PIP and underinsured motorist coverage may also apply.

I was a passenger in a rental car. Who pays my PIP benefits?

Kentucky looks first to the coverage on the vehicle you were in. The Kentucky Supreme Court has held that the rental company's coverage is primary for a passenger's PIP benefits.

What happens if a Turo car hits me?

Kentucky requires peer-to-peer car sharing programs like Turo to make sure the owner and driver are insured during the trip. The program takes on the owner's liability, at least up to state minimums, and its insurance must step in if the driver's or owner's coverage has lapsed.

What if the driver kept the Turo car after the trip ended?

The program's coverage may not apply after the car sharing period ends. Then the driver's own insurance, or your uninsured motorist coverage, becomes more important.

Does my credit card cover a rental car accident?

Credit card benefits usually cover damage to the rental car itself, not injuries to other people or to you. Check your card's terms.

Talk to a Louisville rental car accident lawyer

Get a free case evaluation or call (502) 931-6788. No fee unless we win. Our office is at 1139 S. 4th St., Louisville, KY 40203.

This page is general information about Kentucky law as of October 2026, not legal advice.