Should your personal automobile insurance policy be primary when you rent a vehicle in the State of Maryland? Currently, it isn't. If you rent a vehicle in Maryland, the car rental company covers you and the vehicle you've rented. House Bill 1058 and its companion, Senate Bill 711 would shift the insurance responsibility from the rental company to your personal automobile policy.
Proponents of HB 1058 and SB 711 testified that Maryland is one of only six states where the car rental company is responsible for insuring the vehicle. Being primary puts the rental car company at risk for numerous claims and settlements that may drive these self-insured companies out of business. Opponents of the legislation say the shift is too radical, and could create confusion as insurance usually follows the vehicle and not the person driving it. Moreover, they assert, if you bought a policy to cover a 1997 Chevrolet, why should they be forced to cover your 2011 rental convertable?
Proponents believe, that if passed HB 1058 and SB 711 would save Maryland rental car companies a substanital amount of money. Opponenets say these costs will be paid by everyone in the form of increased automoble insurance coverage premiums. The real question is, will the saving results in lower rental car rates for consumers?
Love the article, hate the idea. This takes a cost paid by the big rental car industry, and shifts it onto all of our insurance policies. What will they think of next?
ReplyDelete