This article is dealing with Arizona auto insurance and we encourage everyone to read their own auto policy to see what is covered. This article is meant to provide a general answer to the question, Will my auto insurance cover me when I rent a car? This answer to this question is maybe, and I'm not trying be coy. The reality is that every auto insurance carrier is different and some may cover a rental car and some may not.
Many carriers have adopted the ISO insurance form. ISO is the International Organization for Standardization. If your insurance carrier is using this form, then most likely they will cover a rental car. Lets discuss liability first. The ISO auto policy form gives a definition of "your covered auto" to also include temporary substitute transportation. "Any auto or "trailer" you do not own while used as a temporary substitute for any other vehicle described in this definition which is out of normal use because of its: Breakdown, repair, servicing, loss or destruction."
Although many people rents cars for reasons other than those listed above, if the policy does not exclude rental car usage, the policy would cover the liability under the "Temporary substitute" section of your policy.
Now, what about physical damage, the damage to the rental car itself versus the damage the rental car, while you are driving, may cause to others and others property. Under part D of the ISO auto policy form it says that the policy will pay for damage to the "non-owned" auto using the same coverage as the auto with the broadest coverage currently scheduled on your auto policy. "We will pay for direct and accidental loss to "your covered auto," or any "non-owned auto" including their equipment, minus any applicable deductible shown in the declarations. "If there is a loss to a "non-owned auto," we will provide the broadest coverage applicable to any "your covered auto" shown in the declarations."
In other words, if you are using a rental car and you have collision coverage on your personal auto policy and you rap that rental car around a tree; your personal auto policy likely will pay for the damage to that rental car minus your deductible. I say likely because not all carriers adopted the ISO auto policy form and some amend the form to exclude rental cars.
The bottom line is, a good agent will make sure you have a good auto policy. We here at Insurance Professionals of Arizona like to pride ourselves on understanding policies and what policies are good for our clients and which ones aren't. Nothing is worse than when an insured thinks they are covered for something and they aren't. If you would like a free review of your coverage's and a free quote call Insurance Professionals of Arizona at 480-981-6338 or go online by click GET A QUOTE. We would be happy to assist you.