Arizona Bill Removing Car Rental Companies as Primary Insurer Fails in House

Arizona Senate Bill 1286 that would’ve removed car rental companies as the primary insurer, failed in a House committee on March 12 in a 2-5 vote. The bill had already passed by a small margin in the state’s Senate in a 16-14 vote on March 1.

The proposed bill would’ve changed the state’s liability insurance coverage laws for motor vehicle rentals to say that a company’s insurance is “excess coverage to any other available insurance coverage for any damages and injury caused by a renter.” Currently, the law states that the public liability insurance or the obligation of a self-insured owner is the primary insurance provider.

The Arizona law, which was passed in 1997, means, for example, that a car rental company is the first source for insurance coverage if a renter gets into an accident and injures a third party, though additional liability may also be satisfied by the renter’s insurer. Only three other states have this type of statute: Delaware, Florida and Michigan.

To read the bill in its last form, click here.

— By Joanne M. Tucker

You can also check out a blog from Executive Editor Chris Brown on the Arizona bill when it was first introduced.

Comments

  1. Gil Cygler [ March 21, 2012 @ 07:11PM ]

    While the car rental industry is the immediate loser, the travelling and renting public suffers the most. Most people have coverage and they can not benefit which will force them to pay more for the rental of cars.

    It would be great if the Arizona car rental compaies would unite and present a unitfied front to the legislature explaining the merits of the case.

  2. Don [ May 26, 2012 @ 11:15AM ]

    No, the owner of a car should be the primary insurer of the car. Otherwise you will have uninsured renters on the highways. And why should personal insurance cover a car that depends on maintenance by someone else?

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 
 
 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Are Renters Exhibiting a Creeping Sense of Entitlement?

Some say this attitude is more prevalent in the millennial generation. Trend or not, your focus should be on dealing with it effectively.

What Keeps Small Fleets up at Night?

Our survey of small commercial fleets reveals their top pain points, but also shows that just a little more focus on fleet could drive big improvements.

Chrysler First Looks and First Drives

An event at Chrysler’s Chelsea Proving Grounds offered a walk-around of the new Ram ProMaster City, a Ram ProMaster test drive, a test of diesel fuel economy and, finally, a worthy trial for a Power Wagon.

Job Finder: Access Top Talent. Fill Key Positions.