The Florida Supreme Court has ruled that Geico car insurance must pay for damage and injuries from a rental car crash, even though the driver was not their insured. Geico argued that they were not liable for the coverage because the person driving was not an authorized driver under the rental contract. But after all was said and done through multiple courts, Geico lost the battle. Since the driver who got in the car accident was authorized by another driver who was authorized by the insured driver, that trumps the fact that their name was not on the rental car contract.
Insurance Journal’s article, “Insurer Must Pay for Florida Rental Car Crash by Unauthorized Driver,” shows that car insurance quotes which cover any authorized driver on your vehicle include rental cars. The rented car was a “temporary substitute auto” for the insured driver, so those authorized to drive the vehicle are covered in the case of an accident. This trumps the fact that the insured driver was the only one authorized by the actual rental car company. Sadly, the reason for all of this litigation is that minors were badly injured in the car crash and one passenger lost their life. Be sure to know the details of your car insurance policy if you are authorizing someone else to driver your vehicle.
Written by Sara Smart
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