This question was answered based upon current rules, regulations & statutes in effect on April 17, 2019
Need clarification on whether or not a rental car company can chase and insured and/or their insurance carrier for loss of use on a vehicle? I know carriers aren't paying it. But recently we had a case where the carrier denied it and the rental car company pursued the insured.
Kathy Cormier: When a customer rents a vehicle they are signing the contract that they are ultimately responsible for any damage to that vehicle. If the insurance carrier is not paying a particular damage, the rental car company will go after the renter.
I’m also sending this to Irene Morrill, VP Technical Affairs to see if she may want to add anything...Irene?
Irene Morrill: As Kathy said as an adult if I sign a rental contract and assume damage to as well as loss of use of a rental car it will be upheld in court. What I sign is not the carriers responsibility unless the policy says it is. The 2008 MAP definitely excludes damage TO an auto I rent or borrow but is vague as to the loss of use for it. Loss of use has been paid in the past but it is not an “easy row to hoe”. However at the end of 2017 MAPFRE took a case to court in MA and won. Reading it the rental company didn’t argue correctly but that is neither here nor there now. Also the 2016 Part 4 has language in the insuring agreement about not paying loss of use so people need to buy the loss damage waiver or use a credit card that pays loss of use
And also they need to READ what they SIGN
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