I’ve been in an accident with my loaner car from a dealership – what now?
Motor Vehicles Accidents - January 13, 2025 by Horwitz, Horwitz & Associates
Getting into an accident is stressful, but the situation becomes even more complicated when it involves a loaner car from a dealership. Whether your vehicle is in for repairs or maintenance, you may be uncertain about your rights, responsibilities, and how to proceed.
At Horwitz, Horwitz & Associates, we understand the complexities of loaner vehicle accidents. Below, our Chicago car accident attorneys explain what to do if you’ve been in an accident with a loaner car from a dealership, who may be liable, and how Illinois law applies to these cases.
Immediate steps to take after an accident with a loaner car
If you’ve been in an accident while driving a loaner car, follow these steps to protect your rights and ensure the situation is properly handled.
1. Gather information
Collect as much information as possible at the scene, including:
- Names, contact information, and insurance details of all involved parties.
- The make, model, and license plate number of all vehicles.
- Photos of the accident scene, vehicle damage, and any visible injuries.
- Witness contact information, if applicable.
2. Notify the dealership
Contact the dealership immediately to inform them of the accident. They may have specific protocols for handling accidents involving loaner cars. Provide them with the necessary details, including the police report number, if available.
3. Contact your insurance company
Notify your insurance company about the accident. They will guide you through the claims process and determine coverage based on your policy.
Who is liable for an accident with a loaner car from a dealership?
Determining liability in an accident with a loaner car depends on several factors, including who was at fault and the terms of the loaner car agreement.
1. Fault in the accident
Illinois follows a modified comparative negligence rule, which means that liability is divided among parties based on their percentage of fault. If you were less than 50% at fault, you may still recover damages, but your compensation will be reduced by your share of fault.
2. Insurance coverage for loaner cars
Loaner cars typically come with insurance provided by the dealership, but the terms can vary. Common scenarios include:
- Dealership’s insurance: Many dealerships carry liability insurance for their loaner vehicles, which may cover damages to third parties if you are at fault.
- Your insurance: Your personal auto insurance policy may extend coverage to a loaner car, including liability, collision, and comprehensive coverage.
- Collision damage waivers (CDWs): If you purchased a CDW or similar coverage through the dealership, it may cover damage to the loaner car.
Understanding the specific terms of both your insurance policy and the dealership’s agreement is crucial in determining coverage.
What if the other driver is at fault?
If the other driver caused the accident, their liability insurance should cover damages to the loaner car and any injuries you sustained. However, you may still need to involve your insurance company to facilitate the claims process or cover costs not immediately paid by the at-fault driver’s insurer.
What happens if I am at fault?
If you are found to be at fault for the accident, you may be responsible for:
- Damage to the loaner car: This may be covered by your insurance policy, the dealership’s insurance, or the CDW you purchased.
- Third-party damages: Your personal liability insurance may cover damages to other vehicles, property, or injuries resulting from the accident.
Reviewing your insurance policy and the dealership’s agreement is essential to understand your financial responsibility.
Common issues in loaner car accident claims
1. Insurance disputes
Disputes may arise between your insurance company and the dealership’s insurer over who is responsible for covering the damages. An experienced attorney can help navigate these disputes and ensure you are not unfairly held liable.
2. Out-of-pocket expenses
Even if insurance covers the majority of damages, you may face out-of-pocket expenses such as deductibles, rental car fees, or charges for violating the terms of the loaner car agreement.
3. Liability disagreements
Proving fault in an accident can be challenging, especially if there is conflicting evidence or testimony. A skilled attorney can investigate the accident, gather evidence, and build a strong case to protect your rights.
How Horwitz, Horwitz & Associates is here to help
If you’ve been involved in an accident with a loaner car from a dealership, understanding your rights and responsibilities is critical. With multiple parties and insurance policies involved, these cases can quickly become complicated. At Horwitz, Horwitz & Associates, we are here to guide you through the process and ensure you receive the compensation you deserve.
For a free consultation, contact us online or call (800) 985-1819. Let us handle the legal complexities while you focus on recovering from your accident.
