Sponsor seeks 7‑day rental protection for drivers hit by at‑fault vehicles; insurers point to existing rules

Representative Steve Pearson told the committee a constituent who was struck by another driver was pressured by the at‑fault carrier to turn in a rental car immediately after the carrier declared the vehicle a total loss. Pearson said the constituent, who was not at fault, had no rental‑car coverage in her own policy and was left scrambling.

Pearson proposed a statutory minimum—seven days of rental coverage from the at‑fault insurer after a loss—to give innocent drivers time to arrange replacement vehicles and to prevent what he described as pressure tactics by claims adjusters demanding quick signoffs. “When you own a single car and your car has just been destroyed, you have to have the ability to replace it,” Pearson said.

The Insurance Department’s Emily Doherty told the committee that existing administrative rules (INS 1002) already address rental‑car coverage in certain circumstances: the department’s claim‑settlement rule requires at least five days of rental coverage after an equitable settlement offer for total losses and provides rental coverage for like kind and quality vehicles during repairs if the claimant has not delayed the process. Doherty noted the department is reviewing the rule — which was approaching expiration — and invited constituents to file complaints with the department’s consumer division when they experience problematic claim handling.

Insurers said claims are often complicated because fault may be disputed, police reports can be ambiguous and carriers must verify damages before paying. Mike McLaughlin of Allstate urged caution: carriers and consumers already have remedies and subrogation (an insured’s own carrier can recover costs from the at‑fault insurer); reforms to standardize consumer protections and clarify rule language could be pursued in rulemaking.

Committee members asked questions about whether the sponsor’s example reflected a lack of rental coverage in the victim’s own policy, how total loss determinations are made, and whether consumers should be required to contact their own insurers. The bill’s sponsor and carriers agreed the department’s consumer protection role is important; the committee closed the hearing and said the item will go to subcommittee.