Focus On

AUTOMOBILE INSURANCE - Third party liability - Vehicle rentals

Thursday, January 23, 2020 @ 8:03 AM  

Lexis Advance® Quicklaw®
Appeal by Enterprise Rent-A-Car from a decision finding it was the first loss insurer. P was involved in a car accident while driving a rental car owned by the appellant. She was subsequently sued by the other driver. At the time, she was a listed driver under a standard Ontario Automobile Policy issued to her father by the respondent. She was not a named insured on her father’s policy. The application judge determined that coverage under the policy issued by the respondent was not available to P for a rental car and that the priority provision in the Insurance Act did not apply as a result.

HELD: Appeal dismissed. Priorities under the Insurance Act depended on the existence of coverage under the policy of insurance. In this case, no coverage was available to P under the respondent’s policy. Coverage under the respondent’s policy for a rental vehicle was only available if the vehicle was rented by a named insured. In the absence of rental vehicle coverage, the priority rules established in the Insurance Act had no relevance in this case. This interpretation was confirmed by the existence of a separate optional endorsement providing rental vehicle coverage which was not purchased in this case.

Ontario Corp. No. 1009329 (c.o.b. Enterprise Rent-A-Car) v. Intact Insurance Co., [2019] O.J. No. 5851, Ontario Court of Appeal, P.S. Rouleau, G. Huscroft and I.V.B. Nordheimer JJ.A., November 21, 2019. Digest No. TLD-January202020010