Car rental report finds majorty of claims for structural damage not caused by renter

Fifty-eight percent of rental car claims for structural damage were not caused by the renter, a new report from CarInsuRent says. 

The 2025 Rental Car Insurance Report analyzed 1,710 rental car damage claims submitted globally worldwide. The results are similar to the 2024 claims trends report that found 60% of the claims were not the renter’s fault, it says. 

It found that many rental car damages are attributed to factors such as pre-existing issues, poor documentation at the time of rental and even fraudulent claims made by rental companies. Other times the report pointed to issues such as a parked car hit by another vehicle as the cause for the damage. 

The report found 23% of claims were for major collisions with damaged that could include crumpled car frames, totaled vehicles or critical failures in mechanical components. 

“This insight highlights the importance of thoroughly documenting the condition of the car at both pickup and return to protect renters from unwarranted charges, as well as the importance of having proper car hire excess insurance in place,” the report says. 

Paint damage and scratches were the most common type of car damage (56%). It said the type of damage usually happens when parking (31%) or while the car is parked (40%) or the renter was charged for a pre-existing scratch (29%). 

“As per the third category, unfortunately, it is a known bad practice of some rental companies to charge clients for pre-existing damage,” the report says. “When the client files a claim for damage that he didn’t cause and didn’t see before he returned the vehicle, we ask them if the rental company’s representative spotted the damage immediately. When the answer to this is positive, we assume that the tiny small damage existed and wasn’t marked on the rental agreement.”

Rim and tire damage represents 14% of reported issues in rental car claims, the report says. This includes flat tires, as well as scuffs, scratches or cracks on wheel rims. 

“Wheel rim scuffs are particularly problematic,” the release says. “In many cases, the damage is pre-existing and may not be clearly documented at vehicle pickup. Minor scuffs can be difficult to notice, especially in low light or when the vehicle is already worn. In other cases, rim damage may occur during routine parking, such as contact with a curb – often unintentionally and at low speed. Despite the minor nature of such damage, repair or replacement costs charged by rental companies can be disproportionately high.”

Additional costs, such as towing can result from tire damage, it adds. 

The report found that 6% of claims dealt with windshield damage and 99% of the cases were not the driver’s fault. 

Weather-related vehicle damage included flood, hail and wind damage made up 0.97% of the claims. The report adds that weather related vehicle damage was more likely to happen in places with extreme weather, such as Iceland. 

The results are similar to the 2024 claims trends report that found 60% of the claims were not the renter’s fault, it says. 

The report suggests that consumers photograph any damage when they rent a vehicle including dents, scratches and marks on the body, interior, wheels, and windows before driving away. 

“If a damage claim arises later, having these pictures can prove that the damages existed beforehand,” the report says. “It’s common to find some pre-existing damage unless the car is brand new.”

A renter should also ask the rental employee to officially record all visible damage before you leave the lot. 

Consumers who did not time-stamp photos should ask for photos taken just before they drove off the lot, request post-return photos and request rental history. 

“Ask for a record showing all rentals of that car between your return and the date of the damage claim letter,” the report says. “If the rental company delayed the claim, they should prove that you were responsible for the damage, considering the car was rented multiple times since your return.”

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