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House clarifies rental-car and personal auto insurance liability
Summary
The House passed S.B. 238 to clarify that a renter's personal auto policy remains primary and that rental-car companies' policies apply only when the renter lacks coverage; Representative Dunnigan sponsored the measure and the House passed it as amended 66-0.
The Utah House passed Senate Bill 238 on Feb. 28 to clarify the allocation of liability when a rental car is involved in an accident. Representative Dunnigan, sponsor of the bill, said a recent Supreme Court ruling had left uncertainty about whether rental companies could be liable even when a renter's own auto policy existed.
Dunnigan told the House the bill's intent is to confirm market practice: a renter's personal automobile insurance policy is primary for claims arising from an accident while renting a vehicle, and the rental company's policy applies only when the renter has no valid collectible coverage. Representative Oda offered Amendment No. 1 to remove redundant language the industry already follows; Dunnigan accepted the amendment as friendly.
The House adopted the amendment and then passed S.B. 238 as amended; the reading clerk recorded 66 yes votes and 0 no votes. The bill will be referred back to the Senate for further consideration.
