Whether your car is in the shop and you need a vehicle to get around or you just want to try something new, you may be considering renting a car. If you do decide to rent, it’s essential that you understand Arizona rental car insurance laws. If you know your rights, you can avoid unexpected costs and challenges in the event of an accident.
Although the rental car agent has to act in the best interest of the rental vehicle occupants and provide insurance information or other available insurance options, renters should understand how their insurance policy and that of the rental company work in tandem.
If you are involved in a rental car accident, your insurance company might put some heat on you. However, you should always consult a car accident lawyer to better understand your legal rights and obligations.
A car accident lawyer can assist you with insurance company negotiations, gathering evidence, and pursuing fair compensation. Here is what you should know about Arizona’s rental car insurance laws.
Minimum Insurance Requirements
A rental car agent is responsible for informing renters of their insurance obligations. Rental car agents must provide information about the insurance coverage included in the rental agreement and explain to renters the minimum liability coverage, which is mandated by state law for rental vehicles. This coverage is different from a private passenger motor vehicle. The auto insurance policy there differs from the one provided by the rental company.
In Arizona, a rental car company must provide the following minimum insurance in liability coverage:
- $15,000 per person
- $30,000 per accident
- $10,000 for property damage
This minimum coverage is meant to provide coverage during the rental period for victims involved in car accidents, including other occupants and other drivers.
The Minimum Liability Insurance For Drivers in Arizona
The prospective renter must understand that, based on the rental agreements, the rental company’s insurance will act as the primary coverage in the event of a car accident. Drivers should evaluate their insurance company policy to understand how coverage would apply to their rental car accident and damage.
Generally, you will use the insurance of the rental company in conjunction with your own insurance company insurance to cover the damages. However, if you are not at fault for the rental accident, then the other driver’s insurance company must pay you for the damages. The minimum liability insurance coverage for drivers in Arizona operating their own vehicles is:
- $25,000 per person
- $50,000 per accident
- $10,000 per property damage
Optional Coverages: Are They Worth It?
A rental company might have optional property damage liability, physical damage insurance, or other liability insurance. Based on the individual rental agreement, a rental car agent must disclose these available options, but they are prohibited from making statements that could be considered a production payment to incentivize the purchase of additional coverage.
A rental car agent acting on the company's behalf must provide accurate insurance coverage information. Generally, optional coverage includes collision damage waivers (CDW) and personal accident insurance. The CDW is not like personal property insurance. It simply absolves you from liability if you damage the rental vehicle. You can also purchase underinsured motorist coverage separately or coverage for certain types of vehicles, such as a sports car, pickup truck, or passenger van.
It’s essential to review your own auto insurance policy and how it may apply to a cargo vehicle or sport utility vehicle. Understand the rental agreement before signing anything to see if it's worth it. Remember that a rental car agent cannot operate legally without a license. To better understand your options, especially in the event of a car accident, consult a Phoenix car accident lawyer.
Steps to Take If You Are Involved in a Car Accident With a Rental Car
If you have been involved in a car accident with a rental vehicle in Arizona, taking the right steps to ensure everyone’s safety and protect your rights is essential.
Seek Medical Attention
If you or anyone else is hurt, seek immediate medical attention regardless of symptoms. Prioritize your health and remember that the medical records will act as a link between your rental accident and the injuries sustained.
Document the Accident Scene
Before renting vehicles, it’s generally best to take some pictures of the car to prove if certain damages were caused by the accident or were already present. Even if you already did this or not, take pictures before leaving the accident scene.
Photograph your injuries, the damages to the motor vehicle operated, road conditions, and the damages to the other driver’s vehicle. Exchange insurance and contact information, and write down the contact information of possible eyewitnesses.
Report the Accident to Rental Company and Authorities
Contact the rental company office to inform them of the accident and your insurance company. If the accident resulted in property damage exceeding $1,000, injury, or a fatality, alert authorities.
Consult a Personal Injury Lawyer
If you believe the rental company is acting in bad faith, have trouble understanding how insurance policies overlap, or need to prove fault and secure compensation for your damages, consult a personal injury lawyer who handles rental car accidents. Whether you were in an accident with a pedestrian or your collision resulted in a fatality, contact an attorney immediately.
Common Pitfalls to Avoid When Dealing With Insurance Companies
Car rental insurance regulations and requirements can be complex to understand, and victims can face certain pitfalls. You should know what mistakes to avoid to protect yourself and your right to compensation.
To keep it simple, an insurance company can deny coverage or minimize payouts in car accidents. However, working with a dedicated car accident attorney can help you understand how insurance works, who might be liable for the accident, and what damages you may recover. Generally, you might not be able to use the rental car company’s minimum liability coverage if:
- The rental vehicles were operated by unauthorized drivers during the accident. Only authorized drivers, as stated in the written agreement, are eligible for coverage
- If the authorized driver used the rental vehicle for purposes not covered by the rental agreement, the coverage will not apply
- The authorized driver was under the influence of drugs or alcohol during the accident
- The driver did not report the accident to the rental company in a timely manner
- The accident occurred due to the rental company’s negligence. In this case, their liability coverage may be applicable
- Other potential exceptions
Legal Recourse for Rental Car Accidents: Working With a Rental Car Accident Lawyer
Regardless of how your rental car accident occurred, various other laws can play a huge difference in your claim and complicate insurance aspects. One example is Arizona’s pure comparative negligence system.
In this legal doctrine, parties involved in accidents can be assigned fault but can recover damages even if they are 99% at fault. However, the percentage of fault allocated to them will be used to minimize their total damage awards accordingly.
Working with a lawyer is crucial when you are involved in a rental car accident. Liability and insurance can greatly differ from that of regular car accidents.
How Wiatt Injury Law Can Help You Navigate Rental Car Insurance Laws
At Wyatt Injury Law, our rental car accident lawyers can help you navigate rental insurance laws and provide guidance on your rights and obligations as a rental car customer. We can assist you with filing insurance claims, negotiating with the rental car company and insurance provider, and pursuing legal action.
Our lawyers work on a contingency fee basis. You won't have to pay if we don’t win your case. Contact our law office for a free case consultation to learn more and pursue justice.
