If you get into an accident with a rental car, what happens next depends on the type of auto insurance coverage you have and the circumstances surrounding the crash. If you paid for it with a credit card or purchased additional insurance, you are generally covered. Purchasing additional insurance from the agency is not necessary if your own auto policy covers rental vehicles. However, if you do not own a vehicle, decided not to purchase rental car coverage, or did not pay with a credit card offering protection, you are liable for all expenses relating to the crash-- if you were at-fault. If you were not at-fault, the other driver’s insurance company should pay for the rental car damage and medical costs relating to injuries.