If you’ve been in a rental car crash or recently crashed a rental car, it’s natural to feel overwhelmed and uncertain about what comes next. A rental car accident adds an extra layer of confusion to an already stressful situation. You might be asking yourself, “Do I have insurance?” or “Am I covered for this?”
Whether you’re involved in a car accident in a rental car, unsure about who is liable, or looking for guidance on how to claim compensation after an accident in a rental car, knowing your legal rights is essential. At Withstand Lawyers, we help people navigate the complex issues around rental car accidents and motor vehicle compensation claims. Read on to see how our car accident lawyers can help you after a rental car crash on a No Win No Fee basis.
Crashed a Rental Car? Here’s What You Need to Know
A rental car accident can leave you feeling anxious, especially when you’re unsure who is legally responsible. Understanding liability is crucial to protect yourself financially and legally. Let’s break down who may be responsible for paying damages when a rental car crash occurs.
Who Pays for Damages if You Crash a Rental Car?
Crashing a rental car raises immediate concerns about who will cover the damage, to both the rental vehicle and any other vehicles involved. The answer depends on fault and insurance coverage, and it’s something most renters don’t think about until it’s too late.
All rental cars in Australia must come with a Green Slip, also known as Compulsory Third Party (CTP) insurance, in order to be legally registered. However, CTP insurance only covers personal injuries to other drivers, passengers, and pedestrians. It does not cover damage to vehicles or property.
Rental companies usually offer optional rental insurance (such as Collision Damage Waiver or Excess Reduction) at the time of hire. If you choose not to purchase this additional cover, if you crash the rental car you could be personally liable for:
Repairs to the rental car you were driving
Damage to the other party’s vehicle
Administrative fees from the rental company
Loss of use charges while the car off the road and being repaired
However, if you purchased Collision Damage Waiver (CDW) or Excess Reduction, these policies can significantly reduce your out-of-pocket expenses after a rental car accident. While these options often come with additional fees, such as an insurance excess, the total amount payable is usually much lower than if you had no coverage at all.
If You Were Not At Fault
If the other driver was at fault in the rental car accident, their insurance is generally responsible for covering the damage. However, most rental companies will still require you to pay the insurance excess upfront, regardless of who caused the rental car crash. This is a standard policy to ensure the rental company can recover repair costs quickly.
Once fault is confirmed, you can seek reimbursement of the excess from the at-fault driver’s insurer. But this process can be slow and complicated, often taking weeks or even months, especially if the insurer disputes liability or delays the investigation.
To claim a refund successfully, you’ll need to provide detailed evidence, such as:
The police report from the accident
Photos of the accident scene
Witness statements
A receipt for the excess payment
Correspondence with the rental company
If you’ve crashed a rental car and aren’t sure what to do next, our experienced car accident lawyers are here to help. We’ll explain your legal rights, guide you through your options, and support you in taking the right steps to claim the compensation you deserve.
Claiming Compensation After a Rental Car Accident
If you’ve suffered an injury in a rental car accident, whether as a driver, passenger, or pedestrian, you may be entitled to claim compensation under NSW’s CTP scheme. It does not matter whether you opted to purchase additional rental insurance, if you were driving the rental car, or if it was a rental car that hit you.
Who Can Claim Compensation After a Rental Car Accident?
Drivers of rental vehicles may be entitled to a payout if they are not at fault and have sustained non-threshold injuries (breaks, fractures, nerve damage, tears or psychological injuries), even if they share some responsibility for the accident.
Passengers travelling in a rental car can usually claim compensation for injuries, regardless of which driver was at fault in the accident.
Pedestrians injured by a rental car may be eligible to claim compensation through the rental driver’s CTP insurer, if they were the driver of the at fault vehicle.
Cyclists injured in a collision involving a rental car can also claim compensation through the rental driver’s CTP insurance policy, if they were the driver of the at fault vehicle.
Struck by a car while cycling on the road? Click here to learn more about cycling accident claims 🔍
Drivers and passengers in other vehicles involved in an accident with a rental car may be able to claim a payout if the rental driver was at fault and if they suffered non-threshold injuries (breaks, fractures, nerve damages, tears or psychological injuries).
What Can You Claim After a Rental Car Accident Injury?
The compensation you can claim after crashing a rental car depends on factors like whether your injuries are non-threshold injuries, how your life and work capacity have been affected, and who was at fault.
If You Were Not at Fault
If another driver caused the rental car accident, you may be eligible for:
Statutory Benefits (No-Fault Entitlements)
Available immediately after the car accident, these benefits may cover:
✅Weekly income support – if your injuries prevent you from working
✅Medical and rehabilitation expenses – including GP visits, scans, physiotherapy, surgery, and treatment for your injuries
✅Domestic assistance – if you require help with household tasks as a result of your injuries
These benefits are generally available for up to 12 months, but can be extended if your injuries are classified as non-threshold (such as fractures, soft tissue tears, nerve damage, PTSD).
Lump Sum Compensation
If the other party is at fault and your injuries are deemed non-threshold, you may also claim a lump sum for:
✅Pain and suffering – for the long-term physical and emotional impact of the accident
✅Past and future income loss – if your ability to work has been permanently affected
To claim compensation for pain and suffering, your injuries must be assessed at a Whole Person Impairment (WPI) of more than 10% by a qualified medical assessor. The higher your WPI rating, the greater the potential payout, especially if your injuries result in long-term disability or a reduced capacity to work. While exact amounts vary, serious rental car accident injuries that meet the WPI threshold can result in lump sum payouts worth hundreds of thousands of dollars, depending on the extent of the impact on your life and earning potential.
In 2024, the State Insurance Regulatory Authority (SIRA) reported 14,261 motor accident injury claims in New South Wales, with total compensation payouts amounting to $1,612.4M. This equates to an average compensation of approximately $113,000 per claim, however your claim may be worth more.
Our experienced car accident lawyers can organise your medical assessments and provide clear advice on your legal entitlements. Contact our team today for a free claim assessment and find out exactly what you may be entitled to after a rental car accident.
Click here to see what others have received for pain and suffering after a car accident.
If You Were At Fault
Being found fully at fault in a rental car accident doesn’t mean you’re left without support. In NSW, you may still be eligible for statutory benefits under the CTP scheme, even if the accident was your fault.
Statutory Benefits for At-Fault Drivers May Include:
Reasonable medical expenses – such as GP visits, physiotherapy, scans, and medication
Weekly income support – for up to 12 months if your injuries are classified as non-threshold
Rehabilitation and recovery services – to assist with your treatment and return to daily life
While at-fault drivers are not eligible for lump sum compensation, you may still be entitled to meaningful short-term financial and medical support.
If you’ve been injured in a rental car accident, even if you think you were at fault, our team of experienced motor vehicle accident lawyers is here to help on a No Win No Fee basis. We’ll assess your situation, determine who was at fault and advise you on your entitlements under the NSW CTP scheme. Contact us today for a no-obligation, free claim assessment.
Steps to Take After A Rental Car Accident
Knowing what to do immediately after a rental car crash can make a big difference in protecting your health, legal rights, and your ability to claim compensation. Whether it’s a minor bump or a serious car rear end collision, taking the right steps can ensure you’re covered under NSW’s personal injury laws.
Here’s what you should do if you’ve been involved in a rental car accident:
If possible, move your vehicle to a safe location out of traffic. Check yourself and others for injuries, even if they seem minor. Some symptoms, like whiplash, may appear hours or days later. Call emergency services if anyone is injured or if there’s significant damage.
Exchange contact, licence, registration, and insurance information with the other driver. If there are any witnesses, get their details too. Accurate information is crucial for filing a CTP claim after being in an accident.
Take clear photos of all vehicles involved, number plates, road conditions, traffic signs, and visible injuries. These images can support your claim and help determine fault.
In NSW, you’re required to report accidents that involve injury or significant property damage. Contact the police to report the accident and request an event number. This report may be needed when claiming through CTP insurance.
Even if you feel okay, see a doctor as soon as possible. Explain you were involved in a car accident and request a full examination. Medical records provide essential evidence for your compensation claim.
If you were driving the rental car, it is important to contact the rental company as soon as possible to report the accident.
If you were hit by a rental car, then you should inform your own insurance company about the incident you were involved in.
In either case, avoid making formal statements or accepting liability without legal advice.
The most important step? Speak with experienced car accident lawyers. At Withstand Lawyers, we help you understand your rights, lodge your CTP claim correctly, and negotiate with insurers to secure the maximum compensation you’re entitled to – all on a No Win No Fee basis, so you never pay out of pocket to make a claim.
Contact us today for a free claim assessment so you know where you stand after a rental car accident.
TPD Claims After a Rental Car Accident
If a crashed rental car has left you with permanent injuries that prevent you from returning to work, you may be eligible to make a Total and Permanent Disability (TPD) claim through your superannuation fund. This type of claim is not related to CTP compensation and could provide a significant lump sum payment to support your future. Most Aussies have TPD cover included automatically in their super, and the amount of cover is separate from your account balance.
When Can You Make a TPD Claim?
You may be eligible to make a TPD claim after a rental car accident if:
You were working before the rental car accident
The accident caused injuries that prevent you from returning to any kind of work that you have education, training or experience in
A doctor confirms your condition will not improve
You hold a superannuation account that includes TPD insurance (most do)
What Can You Receive?
A successful TPD claim may entitle you to a lump sum payment, typically ranging from $50,000 to $350,000 . This payout is separate from your account balance and could help cover:
Lost income
Ongoing medical and care expenses
Living costs and financial security for the future
If you’re unsure if you have TPD cover or if you’re eligible to make a claim, contact our TPD lawyers today. We offer a free claim check where we investigate, on your behalf, whether you held TPD insurance at the relevant dates. Within 4 to 6 weeks, our TPD lawyers will tell you how much you can claim, which is often the full insured amount.
Only after this step do we send you a No Win No Fee cost agreement. While our legal fees are capped and transparent, we often provide an estimate based on the value of your potential benefit, usually not more than 15 percent. This percentage is not a fixed fee. Under Australian law, lawyers cannot charge contingency fees, and all work must be billed in accordance with legal cost disclosure obligations.
If you’re unsure where to start, our team is here to guide you through every step with no upfront costs and clear advice from the outset. Contact us today to see what your claim could be worth.
Want to learn more? Click here for more information about TPD claims 🔍
Scott, a 29-year-old electrician from Western Sydney, was enjoying a well-earned long weekend with his partner on the South Coast. While driving a rental car through Nowra, their trip came to a sudden halt when another driver ran a red light and T-boned their vehicle at high speed. Scott was rushed to hospital with serious knee and lower back injuries and was later diagnosed with a torn meniscus and lumbar disc damage. Unsurprisingly, the holiday was cut short.
Back home, Scott attempted to return to work, but the physical demands of his trade were no longer manageable. With constant pain and limited mobility, continuing as an electrician was simply not an option.
Unsure of what to do next, Scott reached out to Withstand Lawyers for advice. We helped him lodge a CTP claim, which gave him access to statutory benefits including treatment costs and weekly income support. As his recovery stalled, we arranged a formal medical assessment. The insurer denied he was suffering from non-threshold injuries, despite his tear. We successfully overturned this and Scott secured a $550,000 lump sum payout, covering both pain and suffering and his past and future loss of income.
We also identified that Scott had TPD cover for $225,000 through his superannuation, which he didn’t know that he had. We managed the claim process from start to finish, giving Scott additional financial security while he retrains for a new, less physically demanding career.
How Withstand Lawyers Can Assist You After A Rental Car Accident
When you’ve been injured in a rental car accident, you need more than just legal advice. You need a legal team that understands the physical, emotional, and financial toll these incidents can take. At Withstand Lawyers, we combine experience, empathy, and results to help you claim the compensation you deserve.
Here’s why people across NSW trust us with their rental car accident claims:
✅ Rental Car Accident Specialists
We’ve helped countless clients injured while driving or riding in rental cars, and we know how to navigate the unique legal and insurance challenges they present.
✅ We Handle Everything for You
From lodging your statutory benefits claim to preparing medical evidence and negotiating a lump sum settlement, we manage the entire process so you can focus on recovery.
✅ No Win, No Fee
You won’t pay any legal fees unless we win your case.
✅ Free Claim Assessment
We’ll assess your situation at no cost, explain your legal rights clearly, and map out the best way forward.
📞 Contact us today on 1800 952 898 or fill out the online form for a no-obligation, free claim assessment. We’ll help you with your claim, No Win, No Fee!
Issa Rabaya
• Bachelor of Laws
• Graduate Diploma in Legal Practice
• Approved Legal Service Provider to the Independent Review Office
• Member of the Law Society
Issa Rabaya
• Bachelor of Laws
• Graduate Diploma in Legal Practice
• Approved Legal Service Provider to the Independent Review Office
• Member of the Law Society
Rental Car Accident FAQ's
Yes. Whether you were the driver, a passenger, or another party involved, you may be entitled to compensation under NSW’s CTP scheme, especially if you suffered non-minor injuries and were not at fault.
Yes, you can but the extent of compensation benefits may be less if you are wholly or mostly at fault. If the accident was wholly your fault, you are still entitled to claim medical expenses and income support payments for time off work for the first 12 months.
Our team of motor vehicle accident lawyers work on a No Win No Fee basis, which means you do not pay for our legal costs unless you receive compensation. The legal fees we charge will be clearly outlined during your free claim assessment and are only payable if your claim is successful.
The permanent disability rating is determined by Independent Medico-Legal doctors. They assess your injuries to determine your whole person impairment rating based on the American Medical Association Guidelines. The disability rating can vary from 0% to 100% and is only relevant to qualifying for damages for pain and suffering.
Yes. If you are struck by a rental car, as a pedestrian, cyclist or driver of another vehicle, you may be eligible for compensation under NSW’s Compulsory Third Party (CTP) insurance scheme. You can claim for medical treatment, income loss, and other related expenses.
Contact our team of experienced car accident lawyers to find out what entitlements you are eligible to claim.
The answer depends on your injuries and how long does it take for them to be stabilised. Generally speaking, a motor vehicle accident claim can take between 1 to 2 years. Contact us for a free claim assessment to find out more information tailored to your individual situation.
To access income support payments and medical expenses from the date of your rear end accident, you must submit an Application for Personal Injury Benefits within 3 months of the incident.
If it’s been more than 3 months since your accident, you will still be able to make a claim, and depending on the reasons you will be required to provide, to explain the delay, it may still be accepted. Contact our team of experienced car accident lawyers so you know what options are available
Normally, you’d need to exchange contact details and information to lodge a motor vehicle accident claim however if you are involved in a hit and run accident, this cannot be an option. That’s why it is recommended to contact an experienced motor vehicle accident lawyer to seek assistance to plan the motor vehicle compensation claim steps. You can read our Hit and Run Accident Claims page for further information.
