Final answer:
To avoid paying for a stolen rental vehicle out of pocket, Stephen would need to have purchased rental car insurance. This insurance covers theft, damage, and liability for rental vehicles. It is part of a smart financial planning to mitigate potential losses from unexpected events.
Step-by-step explanation:
If Stephen decided to rent an SUV for the family trip and it got stolen on the way back from his trip, the product that he would need to have purchased to avoid paying for the vehicle out of his own pocket is rental car insurance. This specifically refers to a type of insurance that covers theft and damage to a rental car, as well as liability for any damage or injury caused while driving the rental vehicle. Without rental car insurance, Stephen would be financially responsible for the cost of the stolen SUV.
Experiences like an unexpected transmission failure or a natural disaster like a flood can quickly deplete savings, highlighting the importance of emergency funds. Furthermore, unanticipated medical expenses due to events like a broken leg can also put a strain on finances. These scenarios underscore the significance of having comprehensive insurance coverages to protect oneself from potential financial losses.
Therefore, to avoid the financial burden that comes with such unpredictable events, individuals are encouraged to consider the benefits of rental car insurance as part of their broader financial planning and risk management strategies.