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Committee hears testimony on bill to make insurers primary for rental-car crashes
Summary
The Joint Committee on Transportation heard industry and trade association testimony supporting S.2367, which would require insurers to be primary for losses caused by their insured drivers when driving rental cars; no committee vote was taken.
The Joint Committee on Transportation heard testimony supporting Senate Bill 2367 on making personal auto insurers primary for losses their insureds cause while driving rental vehicles.
Supporters said the change would align Massachusetts with most states and simplify claims for crash victims and rental companies. Thomas Doyle, regional liability manager for Enterprise Mobility's Northeast claims operations, told the committee S.2367 would make "the insured negligent party [be] primarily responsible for the damage that he or she causes" and would bring Massachusetts "in line with nearly every other state in the country." Don LaFave, executive director of the American Car Rental Association, said the change "ensures that belief matches reality" and noted that similar reforms in other states have not raised insurance premiums.
The bill would require an insurer to be primary for losses caused by its insured drivers when they operate rental vehicles. Testimony emphasized that rental companies would retain liability for their own negligence and for employees, and that insurers already collect premiums that commonly include coverage for nonowned or temporary vehicles. Witnesses said rental-car claims form a small share of total auto claims and pointed to other states' experience as a precedent for no premium spikes after similar reforms.
Committee members asked witnesses how the system works in other states and about likely consumer impacts if the Commonwealth adopts the change. Thomas Doyle described the process in most states as "essentially an accident with your own vehicle" where the insured contacts their insurer and follows a normal claims path. Don LaFave testified that reform would help small rental firms compete and would provide clarity to consumers.
No formal committee vote occurred during the hearing; committee chairs accepted testimony and offered to receive written submissions for the record. The committee may consider the bill in future business.
