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Question: I hope you could help meinterpret the policy language regarding non-owned autos underDamage to Your Auto, Personal Auto Policy (PAP). If an insured rentsa vehicle for three months, would that be considered available forhis regular use?

— Indiana Subscriber

Answer: Although “non-owned auto” under the PAPoften includes rental cars, the rental vehicle still mustotherwise meet the definition of a non-owned auto and not be“furnished or available for the regular use” of the namedinsured.

Courts consider the general availability of the vehicle and thefrequency of use by the insured. A few years ago, the SupremeCourt, Appellate Division of New York found that a rental vehicledid not meet the definition of a non-owned vehicle when it wasavailable for regular use for 55 days. [Elrac, Inc. v. GE CapitalIns. Co.]

Although there is no single objective guideline for determiningwhen a rental car becomes furnished for regular use, most courtdecisions are consistent with Elrac. While a week's or perhaps evena month's rental of a car would probably qualify as a non-ownedauto not readily available for the regular use of the insured, athreemonth rental with the insured using the car every day on aregular basis probably would not.

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