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Auto Insurance in Phoenix and Rental Cars?

Posted on: August 19th, 2010 by admin

A common question that is posed is whether your personal auto insurance in Phoenix will cover you if you rent a car and whether you should decline the rental car insurance coverage. Your personal auto insurance in Phoenix does cover you for the most part but you could still end up paying out of pocket. Let me explain…

Let’s say for example you are traveling out of town and decide to rent a car to drive around. The person behind the rental car counter asks the question we have all heard “would you like to purchase our rental car insurance”? Most people answer no, with the assumption that their personal auto insurance in Phoenix will pay for it. Most people are correct to assume that you are covered for the most part. Let’s use another example, you are driving your rental car and are distracted from looking at a map to find your destination when all of a sudden you unexpectedly rear end another vehicle. How do you handle this since you declined the rental car insurance coverage? Your personal auto insurance would cover you and this would be a regular claim as if you were driving your own insured Phoenix vehicle. However, now the rental car company has just lost one of their vehicles to rent while it is being repaired in the shop. Who is responsible for the lost revenue the rental car company has incurred? You guessed it, you are. Now if you decided to purchase the rental car insurance there insurance would actually pay for the lost revenue they incurred which would truly cost you nothing out of pocket.

At the end of the day use your discretion when deciding to purchase the rental car insurance. Hopefully now you will have a better understanding of whether it makes sense for you.

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