A rental car accident in Arizona throws an extra wrinkle into an already stressful situation. Instead of one insurance policy, you’re often looking at three or four that might apply. Figuring out which one actually pays first isn’t always obvious. Whether you were the one driving the rental or you were hit by someone else in one, the layers of coverage work the same way.
A Rental Car Accident in Arizona Still Follows the At-Fault Rule
Renting the car doesn’t change the basic rule. Arizona is an at-fault state, so whoever caused the crash is responsible for the damage, whether they were driving their own car or a rental. What changes is which policy actually pays out on behalf of the at-fault renter. A rental car itself typically doesn’t come with its own built-in liability coverage the way an owned vehicle does.
The Layers of Coverage, in the Order They Usually Apply
- The renter’s personal auto policy. Many personal policies extend liability, comprehensive, and collision coverage to a rental car used for personal, not business, purposes. This is especially true if the renter already carries comprehensive and collision on their own vehicle. This is often the first policy that responds.
- Rental company coverage purchased at the counter. Options like a collision damage waiver, supplemental liability insurance, and personal accident coverage are sold separately. They only apply if the renter opted in when picking up the car.
- Credit card benefits. Many major credit cards include secondary coverage for damage to or theft of the rental vehicle if the rental was paid for with that card. This coverage is almost always secondary, meaning it responds after other applicable insurance is used. It typically covers damage to the rental car itself rather than injuries to other people.
What This Means If You Were Hit By Someone Driving a Rental
If someone else caused your crash while driving a rental car, you are not left chasing the rental company. Arizona’s at-fault framework means the at-fault renter is responsible for your damages, through their personal policy, rental coverage they purchased, or both, the same as in any other crash. The rental company itself is not automatically on the hook just because it owns the vehicle.
Total Loss and Diminished Value Still Apply
If a rental car is totaled, the same principles that apply to any total loss claim in Arizona apply here too, just directed at the rental company’s asset instead of a personally owned vehicle. And if you were driving your own car when a rental car driver hit you, your vehicle’s diminished value from the accident is still a real, recoverable loss. It doesn’t matter what the at-fault driver was driving.
Common Complications With Rental Car Claims
A few issues come up more often with rental accidents than with ordinary crashes:
- Loss-of-use charges. Rental companies sometimes bill the at-fault party’s insurer for the days the vehicle was out of service for repairs, on top of the repair cost itself. That’s a separate line item to watch for in the claim.
- Coverage disputes between insurers. With multiple potential sources of coverage, personal policy, rental company, credit card, it isn’t unusual for each insurer to point to another as the one that should pay first. That back-and-forth can slow a claim down considerably.
- Commercial use exclusions. A personal auto policy usually will not extend to a rental car being used for business purposes. That can leave a gap in coverage that the renter didn’t anticipate.
The Bottom Line
A rental car accident in Arizona still follows the state’s basic at-fault rule, but with more insurance policies in the mix and more room for disagreement over which one pays first. Whether you were the renter or the person who got hit, knowing the order these coverages typically apply in helps you push back when an insurer tries to point somewhere else.
For more detail, see Arizona DIFI’s consumer guide to automobile insurance: https://difi.az.gov/consumer/automobile-insurance.
Frequently asked questions
Typically your own personal auto policy responds first if it extends to rental cars used for personal reasons, followed by any rental company coverage purchased at the counter, then credit card benefits as a secondary, limited backstop.
Arizona’s at-fault rule still applies. The at-fault renter, through their personal policy, rental coverage, or both, is responsible for your damages the same as in any other crash.
Usually not. Credit card coverage is typically secondary and generally covers damage to or theft of the rental vehicle itself, not liability for injuries to other people.
Yes. Your vehicle’s diminished value from the accident is a recoverable loss regardless of whether the at-fault driver was in their own car or a rental.
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This article is for general information only and is not legal advice. Insurance policies and rental agreements vary by company and by state. Talk with a licensed Arizona attorney about your specific situation.