In a case of first impression, a Connecticut trial court has ruled that an automobile insurer may not exclude uninsured/underinsured motorist ("UM/UIM") coverage for rental vehicles from an automobile liability insurance policy where the policy otherwise provides rental vehicle coverage as permitted – but not required – by Connecticut law.
The Case
Justin Lollar contended that he was injured while riding as a passenger in a rental car that was struck by an uninsured driver. He sought UM/UIM benefits under the insurance policy his driver had purchased from Progressive Direct Insurance Company.
Progressive denied the claim, asserting that although its policy provided for coverage, generally, "when you rent a vehicle," a separate endorsement changed the definition of a covered automobile for UM/UIM purposes to those owned by the insured driver, thereby excluding rental vehicles.
Mr. Lollar sued, contending that the UM/UIM exclusion violated Connecticut law.
The parties moved for summary judgment.
The Court's Decision
The court granted summary judgment in favor of Mr. Lollar.
In its decision, the court explained that UM/UIM coverage was mandatory in Connecticut and could not be excluded from an automobile insurance policy unless specifically excluded by statute or regulation. The court added that an insurer seeking to limit its liability for UM/UIM coverage could do so "only to the extent" that it was expressly permitted to do so.
The court then ruled that although rental car coverage was not mandatory in automobile liability insurance policies in Connecticut, an exclusion of UM/UIM coverage for such rental vehicles was "not authorized by state statute or agency regulation."
As such, the court concluded, the exclusion was unenforceable.
The case is Lollar v. Progressive Direct Ins. Co., No. HHDCV196108715S (Conn. Super. Ct. Hartford Dist. Oct. 22, 2019).
Steven A. Meyerowitz
Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].