Industry, rental associations push bill to make drivers' insurers primary for rental-car crashes

House Chair Representative Jim Arceuro presided over a hybrid hearing of the Joint Committee on Transportation where industry witnesses urged lawmakers to report S.2367 favorably, a bill that would make a driver’s own auto insurer the primary payer for damage caused while that driver operates a rental car.

The bill matters, supporters said, because current Massachusetts law can leave consumers and smaller rental companies in a more complex claims process than exists in most other states. "The insured negligent party should be primarily responsible for the damage that he or she causes," Thomas (Tom) Doyle, regional liability manager for Enterprise Mobility’s Northeast claims operations, told the committee.

Enterprise Mobility and the American Car Rental Association said the change would put Massachusetts in line with 47 other states and reduce administrative friction for consumers and rental businesses. Don Lefebvre, executive director of the American Car Rental Association, testified: "When someone causes an accident, their insurance, not the rental car company, should pay." He added rental‑related claims make up a very small share of overall auto claims and states that adopted similar rules did not see insurance premium spikes.

Supporters described the current process as confusing for crash-involved drivers and said the bill would protect both consumers and small rental companies by clarifying which insurer should respond first. Doyle said the industry sometimes takes a voluntary primary position in a small number of states, but Massachusetts remains an outlier: "This makes Massachusetts very much an outlier on the issue," he said.

During questioning, committee members sought details about experience in other states and whether shifting order of coverage would increase premiums. Witnesses responded that rental‑related claims account for less than 0.5% of auto claims in many jurisdictions and that nearby New England states have not experienced consumer harm from similar rules.

No formal vote was taken during the hearing. Committee staff reminded attendees that written testimony will remain on file and that recorded testimony and the livestream will be archived for later review.

Supporters asked the committee to report S.2367 favorably so Massachusetts would "match the rest of the country," in Doyle’s words, and to reduce administrative burden for crash victims and rental businesses.