Rental Car Accidents in Utah: Whose Insurance Pays?

Short answer: Usually not the rental company’s. A federal law known as the Graves Amendment generally prevents rental companies from being held liable just because they own the car. The claim runs against the driver, and the money typically comes from the driver’s own auto policy, any coverage bought at the rental counter, the rental company’s backup coverage required by Utah law, and your own policy.

Rental cars are everywhere in Utah, from the Salt Lake City airport to St. George and the ski towns. When a rental is involved in a crash, people often assume the rental company will pay. That assumption is usually wrong, and knowing why helps you look for the right coverage from the start.

The Graves Amendment

Federal law says the owner of a vehicle who rents or leases it is not liable under any state’s law, simply because of that ownership, for harm arising out of the use of the vehicle during the rental, as long as the owner is in the business of renting or leasing vehicles and there was no negligence or criminal wrongdoing on the owner’s part (49 U.S.C. 30106(a)).

Two limits on that protection matter:

• The company’s own negligence. The shield covers liability that comes only from owning the car. If the rental company itself was negligent, the federal law does not protect it from that claim. Whether a company was negligent depends on the facts of each case.
• State insurance requirements. The law does not override state laws that impose financial responsibility or insurance standards on vehicle owners, or that impose liability on rental companies for failing to meet state insurance requirements (49 U.S.C. 30106(b)).

What Utah Requires of Rental Companies

Utah requires a rental company to maintain owner’s or operator’s security, the state’s term for the required liability coverage. But that coverage is a backstop. It applies only when there is no other valid and collectible insurance meeting the state minimums. If other coverage meeting those minimums exists, the rental company’s obligation is satisfied; if none exists, the rental company must provide coverage meeting the minimums (Utah Code 31A-22-314).

The minimums themselves can differ for rental fleets. For most policies issued or renewed since January 1, 2025, Utah’s minimum liability limits are $30,000 for injury to one person, $65,000 per accident and $25,000 for property damage. For a self-insured private rental fleet, the statute sets them at $25,000 per person, $65,000 per accident and $15,000 for property damage (Utah Code 31A-22-304).

If a Rental Car Driver Hit You

Think of the possible coverage in layers:

1. The driver’s own auto policy. Many drivers’ personal policies extend to cars they rent. The terms vary, so the policy itself has to be checked.
2. Coverage bought at the counter. Some renters buy supplemental liability protection from the rental company. The rental agreement will show whether they did.
3. The rental company’s required coverage. Under 31A-22-314, it applies when there is no other valid coverage meeting Utah’s minimums, which can happen when the renter has no personal auto policy, such as some international visitors.
4. Your own policy. Your PIP pays first regardless of fault, and your uninsured and underinsured motorist coverage can fill gaps when the driver’s coverage is missing or too small. See underinsured motorist claims in Utah.

The renter may also be a visitor who has gone home by the time you file a claim. Utah courts can still hear claims against nonresidents who cause injury in Utah (Utah Code 78B-3-205(3)).

If You Were Driving the Rental

If you rented a car and another driver caused the crash, your injury claim is against that driver and their insurer, just as it would be in your own car.

Your own PIP still matters. Utah law extends PIP benefits to the named insured when injured in an accident involving any motor vehicle, with an exception for the insured’s own vehicle that is not insured under the policy (Utah Code 31A-22-308(1)). PIP pays at least $3,000 in medical expenses and part of your lost income regardless of fault (Utah Code 31A-22-307). See is Utah a no-fault state for how PIP works.

Damage to the rental car itself is a separate issue. Depending on what you bought and what cards and policies you carry, that damage may be handled by a damage waiver purchased at the counter, your own collision coverage, or a credit card benefit. Credit card rental coverage varies from card to card and may apply only after other insurance, so read the card’s benefit terms. If another driver caused the crash, their liability insurer should be responsible for the damage. Our guide to property damage claims after a Utah car accident covers the vehicle side of the claim.

If You Were in a Rental and Caused the Crash

If you were at fault, the injured person’s claim is against you as the driver. Your own liability coverage, if your policy extends to rentals, is usually the first place to look, followed by any supplemental liability coverage you bought and the rental company’s backup coverage. Report the crash to your insurer and to the rental company promptly.

What to Gather After a Crash Involving a Rental

• The rental agreement, or at least the rental company’s name and the agreement number.
• The renter’s name, home address and personal insurance information, which may differ from the paperwork in the car.
• The police report. See how to get a Utah police crash report.
• Photos of the vehicles, the scene and your injuries.

Most Utah injury claims can be filed within four years (Utah Code 78B-2-307(4)), but rental records and a visiting driver’s contact details are easiest to get early.

Talk to a Utah Car Accident Attorney

Rental car crashes can stack several policies on top of each other. A free case review can help identify each one before you settle.

Hurt in Utah? Call (801) 921-5134 or send us your case for a free consultation. No attorney fees unless we win. Hablamos Español.