How Does Arizona Handle Accidents Involving Rental Cars?

Our state has much to offer. Arizona’s beautiful landscapes and popular tourist destinations make rental cars a common sight on the roads. 

However, if you were involved in an accident in a rental car, several questions may come into play. Who’s liable for damages? What insurance applies? How do you seek compensation if you’re injured?

In this article, we’ll break down how Arizona handles rental car accidents and explain your rights as a driver, passenger, or injured party. We will also offer guidance on navigating insurance claims, liability issues, and personal injury compensation. 

Arizona Is a Fault-Based State

Arizona follows a “fault” system for car accidents. This means the driver who is legally at fault for causing the accident is responsible for paying for the resulting damages. This applies to rental cars as well. 

So, if you’re hit by someone driving a rental car, you have the right to pursue compensation from the liable party. This is true whether the at-fault party is the driver, the rental company, or an insurance provider. 

Who Pays for Damages in an Arizona Rental Car Accident?

Responsibility for damages in Arizona rental car accidents depends on multiple factors. Here is a breakdown of potential sources of coverage. 

The at-fault driver’s auto insurance

If the driver of the rental car is at fault, his or her personal auto insurance typically provides primary coverage — as long as the policy includes liability and collision coverage. 

This insurance coverage may pay for damage to the rental car, damage to other vehicles, and any medical expenses. 

The rental car company’s insurance

Rental companies are not automatically responsible for accidents involving their vehicles. 

However, they often offer optional coverage at the time of rental:

• Collision damage waiver (CDW)/ Loss Damage Waiver (LDW): Covers damage to the rental car, regardless of fault
• Supplemental liability insurance (SLI): Provides additional liability coverage beyond the driver’s personal policy
• Personal Accident Insurance (PAI): Covers medical expenses for the rental car driver and passengers

Credit card coverage

Many major credit cards offer secondary insurance for rental cars if you pay for the rental using that card. This typically covers damage or theft of the vehicle — but usually not liability for injuries or damage to others. Be sure to check the fine print, because terms vary widely.

Can the Arizona Rental Car Company Be Held Liable for Damages?

Generally, rental car companies are not automatically liable for accidents involving their vehicles. 

However, there are specific scenarios where they may be held accountable under Arizona law:

• Negligent entrustment: If the rental company rents a car to someone they knew or should have known was unfit to drive, they can be held liable. Examples include renting to an obviously intoxicated person or allowing someone with a suspended license to rent a car. 
• Improper vehicle maintenance: Rental companies have a duty to ensure their vehicles are safe and roadworthy. If a mechanical failure due to poor maintenance causes an accident, the company may be liable for injuries or damages. 
• Violation of federal or state laws: Under the Graves Amendment (a federal law), rental companies are shielded from liability for being the sole owner of the vehicle. However, immunity doesn’t apply if the company was negligent or violated safety laws.

What to Do If You’re Injured in a Rental Car Accident?

What you do immediately following a rental car accident can make a difference in your physical health and financial recovery.

Take the following steps to protect your health and legal rights:

• Call 911: Always report to the police and request emergency medical assistance if needed. A police report can be key to establishing fault. 
• Seek medical attention: Even if injuries seem minor, get checked out by a doctor. Some injuries, like whiplash or traumatic brain injuries, may not show symptoms immediately. 
• Gather evidence: Collect names, insurance details, driver’s license numbers, and contact information for all parties involved. Take photos of the accident scene. If there are witnesses, ask for their statements and contact info.
• Notify the rental company: Contact the rental agency and notify them of the accident. Most contracts require immediate notice. 
• Consult a personal injury lawyer: Injuries from rental car accidents can involve multiple insurance policies, state and federal laws, and complex liability questions. 

Arizona Rental Car Accident FAQs

The following are some frequently asked questions people have about rental cars and accidents in Arizona.

Do I have to buy the rental company’s insurance?

No, if you carry a personal auto insurance policy with minimum liability coverage, Arizona law lets you decline. Typically, your personal policy extends to most rental cars in the US.

What if the at-fault driver was another motorist, not the renter?

You can file directly against that driver and his/her insurer. Your own UM/UIM or the rental company’s policy may step in if that driver is uninsured or underinsured.

Can I sue the rental company for giving me a defective car?

Yes, mechanical failure is outside the “Graves” law shield. A personal injury lawyer can help you file a lawsuit for defective products. 

What if I was only a passenger?

You can pursue compensation from the at-fault driver’s insurance. Additionally, rental company insurance coverage must also insure passengers unless the company gave written notice excluding them.

How long do I have to notify my insurer of the crash?

Most insurance companies require “prompt” notice of a car accident. It’s best to notify your insurer as soon as possible. Late notice can jeopardize coverage. 

How Can a Personal Injury Lawyer Help After an Arizona Rental Car Accident?

Navigating a rental car accident can be overwhelming and frustrating. Here are some ways in which an experienced Arizona car accident lawyer can support your case:

• Determine liability: Your attorney will investigate the rental car accident. This could involve reviewing police reports, requesting copies of medical records, gathering witness statements, and more.
• Untangle insurance issues: Rental accidents often involve multiple insurers (personal, rental company, and credit card). A personal injury lawyer ensures that no source of compensation is overlooked. 
• Pursue maximum compensation: Whether it is through negotiation or litigation, your car accident lawyer will work hard to secure maximum compensation for you. Recoverable damages can include medical expenses, lost income, property damage, and pain and suffering. 
• Handle legal deadlines and paperwork: Arizona has strict time limits for filing personal injury claims (typically 2 years from the date of the accident). Your car accident attorney keeps your case on track.
• Protect you from blame: Arizona uses the comparative fault system. This means your compensation will be reduced by your percentage of fault. Your lawyer will fight to minimize any unfair blame. 

Injured in a Rental Car Accident in Arizona? Let Us Help

Whether you were driving a rental car or were hit by someone in one, the aftermath of an accident can leave you facing pain, confusion, and financial uncertainty. You don’t have to go through this challenging time alone. Our Arizona personal injury attorneys are here to offer support and legal guidance. 

We have extensive experience handling complex insurance disputes and car accident claims. We will investigate the details, identify all responsible parties, and fight to secure the compensation you deserve. 

Contact us today to schedule a free consultation with us. Put our experience to work for you. If we don’t win, your case is free.