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Arredondo v. Avis Rent a Car System3/27/2001
by the rental company on the rental agreement as an authorized driver. It is not obligated, however, to provide liability insurance for permissive users and/or relatives of the household.
As noted above, the insurance provided must meet the requirements of title 41, chapter 12a. Section 41-12a-103(9) states, "`Owner's or operator's security,' `owner's security,' or `operator's security' means any of the following: (a) an insurance policy or combination of policies conforming to Section 31A-22-302 . . . ."
Section 31A-22-302(1)(a) states:
(1) Every policy of insurance or combination of policies purchased to satisfy the owner's or operator's security requirement of Section 41-12a- 301 shall include:
(a) motor vehicle liability coverage under Sections 31A-22-303 and 31A-22-304[.]
Section 31A-22-303 is the provision set forth above pertaining to owner and operator policies. (Section -304 sets forth the minimum dollar amounts to be provided in liability policies.)
Therefore, the statutes of the state of Utah require a car rental company to provide operator coverage insuring the person who rented the car, his or her spouse, and those persons designated in the statute as set forth above. The statutes do not require such coverage for permissive users or relatives who are residents of the operator's household.
In the case before us, Mrs. Walston rented a car from Avis Rent A Car. The rental agreement provided:
17. WHO ELSE MAY DRIVE THE CAR, ONLY MY SPOUSE, MY EMPLOYER OR A REGULAR FELLOW EMPLOYEE INCIDENTAL TO BUSINESS DUTIES OR SOMEONE WHO APPEARS AT THE TIME OF RENTAL AND SIGNS AN ADDITIONAL DRIVER FORM, MAY DRIVE THE CAR BUT ONLY WITH MY PRIOR PERMISSION. THE OTHER DRIVER MUST BE AT LEAST 25 YEARS OLD AND A CAPABLE AND VALIDLY LICENSED DRIVER.
As for liability insurance coverage, the rental agreement provided:
18. LIABILITY INSURANCE, ANYONE DRIVING THE CAR AS PERMITTED BY THIS AGREEMENT WILL BE PROTECTED AGAINST LIABILITY FOR CAUSING BODILY INJURY OR DEATH TO OTHERS OR DAMAGING THE PROPERTY OF SOMEONE OTHER THAN THE DRIVER AND/OR THE RENTER UP TO THE MINIMUM FINANCIAL RESPONSIBILITY LIMITS REQUIRED BY APPLICABLE LAW. THE LIMIT FOR BODILY INJURY SUSTAINED BY ONE PERSON INCLUDES ANY CLAIM FOR LOSS OF THAT PERSON'S CONSORTIUM OR SERVICES. WHERE THE LAW EXTENDS COVERAGE TO A NON-PERMITTED DRIVER, THE SAME LIMITS SHALL APPLY.
Therefore, the rental agreement had restrictions as to who was authorized to drive the rental car, and provided that those persons would be protected by liability insurance "up to the minimum financial responsibility limits required by applicable law." It should be noted that the agreement provided that "where the law extends coverage to a non-permitted driver the same limits shall apply." However, in Utah, nonpermissive drivers are not required by statute to be covered by insurance. Only those persons designated and those persons driving with express or implied permission of the owner are deemed to be additional insureds, and that applies only to owner policies. As to operator policies, such permissive users are not required to be covered.
However, while the statutes provide certain requirements that all automobile insurance policies must meet, that does not prevent an insurance policy from providing greater coverage than required by statute. The automobile insurance policy must be examined to determine the coverage provided. If it fails to meet minimum statutory requirements, it will be construed to do so. If it exceeds minimum statutory requirements, it will be applied accordingly.
In this case, Mrs. Walst
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