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Rental car industry urges Massachusetts to make personal auto policies primary for rental crashes
Summary
Industry witnesses and a rental company owner told a committee that House Bill H.1301 would align Massachusetts with other states, make liability clearer, and would not increase overall premiums for consumers.
Donald Fave, executive director of the American Car Rental Association, told the committee that House Bill H.1301 would require personal auto insurers to provide primary coverage when their insured causes an accident while driving a rented vehicle. “If driver causes an accident, their own insurance, not the rental car companies should be the first to respond,” Fave said.
Fave said 47 states already follow the principle and described Massachusetts as an outlier, arguing the change would not relieve rental companies of liability for their own negligence. “When an insurer has accepted premiums to cover temporary or non owned vehicles, it should fulfill that obligation,” he said.
A second witness, the president of J. Harling Corporation, which does business as Black Mobility Ace Rent A Car, said the current system is a significant financial burden for small rental operators and that rental-related claims account for “less than 0.5 of all auto claims.” He said aligning state law with other states would protect small businesses and give drivers “peace of mind” that their personal policies will respond.
Both witnesses urged a favorable report on H.1301 and argued comparable states saw no premium increases after similar reforms. The provided transcript records testimony and requests for committee action but does not show a committee vote or other formal action on H.1301.
