Palmdale, CA asked in Civil Litigation and Insurance Bad Faith for California

Q: CAN A RENTAL CAR COMPANY LEGALLY SUE YOU AFTER THEIR CLAIM WAS DENIED BY YOUR INSURANCE COMPANY

THE INSURANCE COMPANY DENIED THEIR CLAIM DUE TO THEIR INABILITY TO MEET THEIR DOCUMENTATION AND TIME RESTRICTIONS.

THEIR CLAIMS WERE LIES CLAIMING THEY SPENT 12,000.00 + TO REPAIR THE CAR WHEN IN FACT THEY SOLD THE CAR AT AUCTION 2 MONTHS LATER FOR $18,000.00+ AS IS WITH NO REPAIRS DONE.

2 Lawyer Answers
Gerald Barry Dorfman
Gerald Barry Dorfman
Answered
  • Mill Valley, CA
  • Licensed in California

A: Yes, they can sue you. If they do, turn it over to your insurance company right away. They will provide a defense (including appointing an attorney) for you.

William John Light agrees with this answer

James L. Arrasmith
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Answered
  • Insurance Claims Lawyer
  • Sacramento, CA
  • Licensed in California

A: Whether a rental car company can legally sue you after their claim was denied by your insurance company may depend on the specific circumstances of the situation and the laws of the jurisdiction where the rental occurred.

In general, if you signed a rental agreement with the rental car company, you may be liable for damages to the rental car, regardless of whether your insurance company paid the claim or not. However, the rental car company would have to prove that you were at fault for the damages and that they suffered losses as a result. The fact that the rental car company was unable to meet documentation and time restrictions, or that they may have made false claims about the cost of repairs, may be relevant factors in the case.

It is important to consult with a lawyer who is familiar with the laws in the jurisdiction where the rental occurred and who can review the rental agreement and any relevant documentation to determine your legal rights and obligations in this situation.

Under California law, a rental car company may seek compensation from a renter for damages to the rental car. However, the amount of damages that a rental car company may recover from a renter may be limited by California's insurance laws and other legal requirements.

Specifically, California Civil Code section 1936 provides that a rental car company may not hold a renter responsible for damages to a rental car that are beyond normal wear and tear, unless the renter has violated the terms of the rental agreement or committed a prohibited use of the rental car. In addition, California law requires rental car companies to maintain certain levels of liability insurance coverage for their rental cars.

If the rental car company filed a claim with your insurance company and the claim was denied due to the rental car company's inability to meet their documentation and time restrictions, the rental car company may still be able to sue you for damages. However, in order to recover damages, the rental car company would have to prove that you were responsible for the damages to the rental car and that they suffered losses as a result.

It is worth noting that if the rental car company made false claims about the cost of repairs, this may be considered fraud or a deceptive business practice under California law. In such cases, you may have legal recourse against the rental car company for any damages you suffered as a result.

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