What Happens If You Crash a Rental Car in Massachusetts?

If you crash a rental car in Massachusetts, your own auto policy is usually the first place the money comes from, because since February 24, 2026 the rental company’s liability coverage is only a backstop that applies when the driver has no valid policy that meets the state minimums. Your personal injury protection pays the first medical bills whoever caused the crash. Damage to the rental car itself is paid by your collision coverage, less your deductible, if you have collision coverage, or by a collision damage waiver if you bought one. If you were hit by someone else driving a rental car, a federal law generally keeps you from suing the rental company just because it owns the car, so the claim runs against the driver and the driver’s insurance.

If you were hurt in a crash involving a rental car and want to talk through what comes next, call Jim Glaser Law at (617) JIM-WINS. The line is answered 24 hours a day. The first telephone consultation is free. This page is general information about Massachusetts law, not legal advice about your situation.

A few terms come up throughout. A renter is the person who signs the rental agreement. An authorized driver is the renter or anyone the rental company lists on the agreement as allowed to drive. A collision damage waiver is an optional charge on the rental agreement under which the company gives up its claim against you for damage to the car. Personal injury protection, or PIP, is the part of a Massachusetts auto policy that pays medical bills and lost wages up to at least $8,000 per person regardless of fault. Secondary coverage is insurance that pays only after, or only in the absence of, another policy.

The Four Questions After a Rental Car Crash

Every rental car crash raises the same four questions, and Massachusetts answers each one under a different statute:

1. Whose liability insurance pays the people you hurt? Your own policy first, under the 2026 version of M.G.L. c. 90, sec. 32E. The rental company’s policy stands behind it.
2. Who pays your own medical bills? Personal injury protection, under c. 90, secs. 34A and 34M, without regard to fault.
3. Who pays for the damage to the rental car? Your collision coverage if you have it, or a collision damage waiver if you bought one, under c. 90, sec. 32E1/2. Otherwise, possibly you.
4. Can you sue the rental company if its car hit you? Generally not just because it owns the car, under the federal Graves Amendment, 49 U.S.C. sec. 30106, unless the company itself was negligent.

The rest of this page takes them one at a time.

The 2026 Change: Your Policy Comes First

Massachusetts has long required a business that rents out cars to carry a motor vehicle liability policy on them. Until February 24, 2026, the second paragraph of c. 90, sec. 32E simply required every lessor to “provide and maintain” a policy, bond or deposit while in the business.

The Legislature rewrote that paragraph in St. 2025, c. 78, titled “An Act relative to affordable car rentals,” approved November 26, 2025. The new text, in effect from February 24, 2026, says the lessor’s policy is held “on a secondary or contingent basis, equal to not less than the financial requirements imposed on owners or registrants in the commonwealth if the lessee or operator does not have a motor vehicle liability policy or other coverage.” The next sentence is the one that matters in practice:

“If the lessee or operator holds a valid and collectible liability policy or other form of financial security which satisfies the minimum financial requirements imposed on owners or registrants in the commonwealth, a lessor’s obligation under this section shall be satisfied.”

In plain terms, if you have your own auto policy that meets the Massachusetts minimums and you cause a crash in a rental car, your policy is the one that answers for the injuries you caused. The rental company’s coverage is there for the renter who has no policy at all.

The minimums matter here, because they set the line your policy has to clear. For policies issued or renewed on or after July 1, 2025, c. 90, sec. 34A requires bodily injury coverage of not less than $25,000 for any one person and $50,000 for any one accident. A renter who carries only the minimum and causes a serious crash may find that $25,000 does not go far. See Massachusetts car insurance requirements.

The same session law amended c. 90, sec. 34M twice so that the personal injury protection rules apply to a policy “as required under section 32E.” The rental company’s backstop policy, when it applies, carries PIP like any other Massachusetts policy.

What about crashes before February 24, 2026? The earlier text of sec. 32E applied then. Whether the change reaches a claim from an older crash is a question to raise with a lawyer, and this page does not answer it.

Who Pays Your Medical Bills

Personal injury protection pays first, and fault does not matter. Under c. 90, sec. 34A, PIP pays “without regard to negligence or gross negligence or fault of any kind,” up to at least $8,000 per person, for reasonable medical expenses incurred within two years of the crash and for most of the wages actually lost.

The statute’s list of who PIP covers is worth reading closely, because it fits a rental car. Section 34A defines PIP as payment to “the named insured,” to “members of the insured’s or obligor’s household,” to “any authorized operator or passenger of the insured’s or obligor’s motor vehicle including a guest occupant,” and to “any pedestrian struck by the insured’s or obligor’s motor vehicle.” Passengers in the rental car, and a pedestrian struck by it, fall inside that list under whichever policy is covering the car. How your own PIP and any PIP on the rental company’s policy are coordinated is set by the policies themselves, so ask your insurer early and in writing.

Two limits apply. First, the same definition excludes a person “entitled to payments or benefits under the provisions of chapter one hundred and fifty-two,” the workers’ compensation law. If you were driving a rental car for work, on a business trip or a client visit, the claim for your medical bills and lost wages may belong in workers’ compensation rather than PIP. See the going-and-coming rule in workers’ compensation. Second, a claim for PIP must be presented “as soon as practicable” and “within at least two years from the date of accident” under c. 90, sec. 34M. More on PIP is in personal injury protection in Massachusetts.

Who Pays for Damage to the Rental Car

This is the question most renters worry about at the counter, and Massachusetts answers part of it in the rental agreement itself.

Under c. 90, sec. 32E1/2, every collision damage waiver sold in Massachusetts must carry a printed notice in at least ten point type. Part of it reads: “For Massachusetts drivers: If you have an automobile policy on your personal vehicle with coverage for collision, your policy will cover collision damage to a rental vehicle, less the deductible on your policy.” The same notice tells drivers with policies from other states to check with their own agents.

That sentence has a condition built in: coverage for collision. Collision coverage is optional in Massachusetts. A driver who carries only the compulsory coverages does not have it, and the notice does not promise that driver anything.

The section also limits what the rental company can do:

• The waiver is optional. A company that advertises or rents at a rate that does not include the waiver “may not require that collision damage waiver be purchased as a condition of the rental.”
• No damage deposit if you decline. If you decline the waiver, the company may not require a deposit, in cash or on a credit card, “to cover possible damage or loss.”
• You must agree in writing. The company may not sell the waiver unless you initial the waiver portion of the agreement when you sign it, or it was pre-selected in a corporate or group agreement.
• The waiver is not insurance. The statute says so in terms.
• Only listed exclusions are allowed. If you bought the waiver, the company may refuse to honor it only for the reasons the statute lists: damage caused intentionally, willfully or wantonly; driving while intoxicated or under the influence of an illegal drug; a speed contest; towing or pushing, or carrying people or property for hire, unless the agreement allows it; driving outside the United States or Canada unless allowed; damage while the car is driven, with the renter’s permission, by someone who is not an authorized driver; a rental obtained with fraudulent information; and damage during the commission of a felony.

A company that violates the section faces a fine of not more than $100 for each violation, and each rental transaction counts separately. The section’s definitions cover private passenger cars, station wagons, passenger vans and minivans rented from a Massachusetts location for thirty continuous days or less.

Your Own Car Compared With a Rental

Question	Crash in your own insured car	Crash in a rental car, on or after February 24, 2026
Liability coverage for injuries you cause	Your policy	Your policy first; the rental company’s policy only if you have no valid policy meeting the minimums (c. 90, sec. 32E)
Your medical bills and lost wages	Your PIP, regardless of fault	PIP, regardless of fault; workers’ compensation instead if you were on the job (c. 90, sec. 34A)
Damage to the car you were driving	Your collision coverage, if you have it	Your collision coverage less the deductible, if you have it, or the collision damage waiver, if you bought one (c. 90, sec. 32E1/2)
Deposit for possible damage	Not applicable	Not allowed if you decline the waiver (c. 90, sec. 32E1/2)
Written crash report within five days	You, as the driver (c. 90, sec. 26)	You, as the driver; the owner reports only if you are physically unable to (c. 90, sec. 26)
Claim against the owner as owner	You are the owner	Generally barred against the rental company (49 U.S.C. sec. 30106)

If Someone Driving a Rental Car Hit You

Massachusetts law normally makes it easy to hold a car’s owner responsible. Under c. 231, sec. 85A, evidence that a vehicle was registered to the defendant “shall be prima facie evidence that it was then being operated by and under the control of a person for whose conduct the defendant was legally responsible.”

For rental companies, federal law cuts that off. The Graves Amendment, 49 U.S.C. sec. 30106(a), provides that a company in the business of renting or leasing vehicles “shall not be liable under the law of any State… by reason of being the owner of the vehicle” for harm arising from the use of the vehicle during the rental, as long as “there is no negligence or criminal wrongdoing on the part of the owner.”

Two openings remain, and both are narrow:

1. The company’s own negligence or wrongdoing. The federal law protects the company only as an owner. Massachusetts separately forbids a rental business to lease a car until the renter shows a valid license, and forbids leasing to anyone the business knows or has reason to believe is under the influence of liquor or drugs (c. 90, sec. 32C). Facts like those go to the company’s own conduct, not its ownership, and are worth raising with a lawyer if they are present.
2. State insurance requirements. Section 30106(b) says the federal law does not override state laws “imposing financial responsibility or insurance standards” on owners, or liability on rental businesses for failing to meet them. That is where the c. 90, sec. 32E backstop policy fits. If the driver who hit you had no policy of their own, the rental company’s secondary policy is meant to stand in at the state minimums.

What if the driver was not on the rental agreement? Section 32E says a person the renter permits to drive in violation of the section is still “deemed to be with the express or implied consent of the lessor” for the purposes of the compulsory insurance sections, c. 90, secs. 34A to 34J. An unlisted driver does not, by that fact alone, take the car outside the insurance the statute requires. The same unlisted driver can, however, void a collision damage waiver for damage to the rental car itself.

Your own PIP pays your first medical bills either way. If the rental driver had no coverage, see also uninsured and underinsured motorist coverage.

Answer Capsule

After a crash in a rental car in Massachusetts on or after February 24, 2026, the renter’s own auto policy answers first for injuries the renter caused. St. 2025, c. 78 rewrote M.G.L. c. 90, sec. 32E so that a rental company’s liability policy is held “on a secondary or contingent basis” and its obligation is satisfied when the renter or driver holds a valid policy meeting the state minimums, which are $25,000 per person and $50,000 per accident for policies issued or renewed on or after July 1, 2025. Personal injury protection pays the first $8,000 of medical bills and lost wages regardless of fault, except for a person covered by workers’ compensation, and a PIP claim must be presented within two years. Damage to the rental car is covered by the renter’s own collision coverage, less the deductible, if the renter has collision coverage, or by a collision damage waiver if one was bought; under c. 90, sec. 32E1/2 the waiver is optional, cannot be required where the rate excludes it, and a renter who declines it cannot be made to leave a damage deposit. A person hit by a rental car generally cannot sue the rental company just because it owns the car (49 U.S.C. sec. 30106), so the claim runs against the driver, with the company’s secondary policy standing in if the driver had none. An injury claim must be filed within three years under c. 260, sec. 2A.

Fault, Pain and Suffering, and the Deadline

A rental car does not change the ordinary rules for an injury claim.

Fault is shared by percentage. Under c. 231, sec. 85, a person can recover as long as their own negligence “was not greater than the total amount of negligence attributable to the person or persons against whom recovery is sought,” and their damages are reduced by their share. See how partial fault works.

Pain and suffering has a threshold. Under c. 231, sec. 6D, a person hurt in a motor vehicle crash in Massachusetts can recover for pain and suffering only if reasonable and necessary medical expenses exceed $2,000, or the injury causes death, the loss of a body member, permanent and serious disfigurement, a described loss of sight or hearing, or a fracture.

The deadline is three years. Under c. 260, sec. 2A, an action for personal injuries must be commenced “within three years next after the cause of action accrues.” See the Massachusetts statute of limitations for personal injury.

Where the case is filed. Under c. 223, sec. 1, an injury action is brought “in the county where one of them lives or has his usual place of business.” Where the rental counter was and where the crash happened do not decide it.

A crash outside Massachusetts. If you rented in Massachusetts and crashed in another state, c. 90, sec. 34M says the Massachusetts trade of PIP for the right to sue does not apply “in the case of an accident occurring outside the commonwealth.” See out-of-state drivers and border towns.

What to Do After a Rental Car Crash

1. Get to safety and call 911 if anyone is hurt or the cars cannot be moved. Get the police report number before the officer leaves.
2. Get medical care the same day, even if the injury seems minor. PIP covers the first bills regardless of fault.
3. Photograph everything, including the rental car from all sides, the other vehicle, the scene, and the odometer and fuel gauge.
4. Call the rental company’s emergency or accident line listed on the agreement or the key tag, and follow its reporting steps. Write down who you spoke to and when.
5. Find your copy of the rental agreement and check whether you initialed the collision damage waiver. That one initial decides who pays for the car.
6. File the Massachusetts crash report within five days. Under c. 90, sec. 26, the driver must report in writing to the Registrar and send a copy to the local police whenever anyone was hurt or any one vehicle or other property had more than $1,000 in damage. The rental company reports only if you are physically unable to. See how to report a car accident in Massachusetts.
7. Notify your own insurer promptly. Under the 2026 law your policy is likely the first one on the hook, and late notice causes problems.
8. Do not sign a damage acknowledgement or give a recorded statement until you understand what you are agreeing to. See recorded statements to insurance companies.

Key terms

• Renter (lessee): the person who signs the rental agreement and takes the car.
• Authorized driver: the renter, or anyone the rental company expressly lists on the agreement as allowed to drive.
• Collision damage waiver: an optional, separately charged promise by the rental company to give up its claims against the renter for damage to or loss of the rental car; Massachusetts law says it is not insurance.
• Secondary or contingent coverage: a policy that applies only when the primary coverage is missing or does not meet the required minimums.
• Personal injury protection (PIP): the part of a Massachusetts auto policy that pays medical bills and lost wages up to at least $8,000 per person, whoever caused the crash.
• Graves Amendment: the federal law, 49 U.S.C. sec. 30106, that shields a rental or leasing business from liability that arises only from owning the vehicle.

Frequently Asked Questions

Q: Does my own car insurance cover a rental car in Massachusetts?

A: For injuries you cause to others, yes in most cases, and since February 24, 2026 it comes first: c. 90, sec. 32E makes the rental company’s policy secondary when you hold a valid policy meeting the state minimums. For damage to the rental car itself, the notice required by c. 90, sec. 32E1/2 says a Massachusetts policy with collision coverage covers collision damage to a rental, less your deductible. Without collision coverage, that notice does not apply to you.

Q: Do I have to buy the rental company’s collision damage waiver?

A: No. Under c. 90, sec. 32E1/2 the waiver is optional, a company renting at a rate that does not include it may not require you to buy it, and if you decline it the company may not require a deposit to cover possible damage. Whether you should buy it depends on whether you have collision coverage and what your deductible is.

Q: What happens if I crash a rental car and I have no car insurance of my own?

A: The rental company’s policy under c. 90, sec. 32E stands in at not less than the state minimums for injuries you cause to others, because you have no policy of your own. Damage to the rental car is a separate matter: without collision coverage and without a waiver, the company may look to you for it. See what happens if you crash without insurance.

Q: Can I sue the rental car company if one of its cars hit me?

A: Generally not just because it owns the car. The Graves Amendment, 49 U.S.C. sec. 30106, bars that kind of claim where there is no negligence or criminal wrongdoing by the company. The claim runs against the driver. If the company’s own conduct contributed, for example renting to someone without a valid license, that is a different question for a lawyer.

Q: Who pays my medical bills after a rental car crash?

A: Personal injury protection, up to at least $8,000 per person regardless of fault, under c. 90, sec. 34A. If you were driving for work, workers’ compensation may apply instead, because the PIP definition excludes people entitled to benefits under chapter 152. Present the PIP claim as soon as practicable and within two years.

Q: What if a friend who was not on the rental agreement was driving?

A: Section 32E treats a person the renter allowed to drive as driving with the rental company’s consent for the purposes of the compulsory insurance sections, so the required insurance still applies. A collision damage waiver, though, may be refused for damage that happened while someone other than an authorized driver was driving with the renter’s permission.

Q: Do I have to report a rental car crash to the RMV?

A: Yes, if anyone was hurt or killed or any one vehicle or other property had more than $1,000 in damage. Under c. 90, sec. 26 the driver must report in writing to the Registrar within five days and send a copy to the police. Telling the rental company does not replace that report.

Q: How long do I have to bring an injury claim after a rental car crash?

A: An action for personal injuries must be commenced within three years after the cause of action accrues under c. 260, sec. 2A. A PIP claim has its own two-year limit under c. 90, sec. 34M.

Q: Is Jimmy Knows AI giving me legal advice?

A: No. This page is general information about Massachusetts law for educational purposes. It is not legal advice for your situation and does not create an attorney-client relationship. For advice about your own case, call Jim Glaser Law at (617) JIM-WINS.

Talking to a Lawyer

The 2026 change moved the first dollar of a rental car crash from the rental company to the renter’s own insurer, and most renters have not heard about it. If you were hurt in a rental car, or by one, the questions worth asking early are whose policy is first in line, whether workers’ compensation applies, and what the rental agreement says about the car. For more on crash claims generally, see car accident help in Massachusetts and what an insurance adjuster is looking for. Call Jim Glaser Law at (617) JIM-WINS. The line is answered 24 hours a day. The first telephone consultation is free.