On January 29, 2024, the PA Supreme Court issued a ruling that affects commercial drivers, and all drivers who regularly drive vehicles not insured under their personal insurance. This includes tractor-trailer drivers, delivery drivers, people with company cars, bus drives and others. This ruling means if these drivers are involved in an accident with an uninsured or underinsured motorist, they may be limited in how much they can recover for their injuries.
Individual situations differ, so if you are a commercial driver, it’s essential to understand what your insurance coverage is, both personal and work. Your insurance agent should be able to explain your personal coverage, and human resources should be able to explain your work coverage.
If you’ve been in a car accident, contact Aversa & Linn today for a free consultation to discuss your options.
What is the case about?
The lawsuit, Rush v. Erie Insurance Exchange, was about the “regular use” exclusion clauses that appear in some insurance policies. A “regular use” exclusion limits the scope of uninsured (UM) or underinsured motorist (UIM) coverage.
The plaintiff in the lawsuit, Matthew Rush, suffered significant injuries in a motor vehicle accident while driving a car for work. He had UIM coverage from both his employer’s policy and his personal policy. Both policies contain a “regular use” exclusion. After the accident, when Rush’s injuries exceeded the limits of the other driver’s policy and the UIM limits of his company’s policy, he filed a claim for UIM benefits under his personal policy.
What impact could this have on drivers?
The ruling in the Rush v. Erie Insurance Exchange case could have significant implications for drivers in Pennsylvania. Here are a few potential impacts:
Anyone who regularly drives a car that they don’t own could be limited in the amount of damages they can recover if they have an accident with an uninsured or underinsured motorist.
When people buy UM/UIM coverage, they often have the impression that coverage will follow them but that is not the case if it’s a vehicle you regularly use and do not own.
Insurance companies argue that when they are coming up with a premium, they use the information they have about the use of the cars you own to calculate a rate. If a person drives a lot for work, and the company doesn’t know that, they say they are writing coverage with wrong assumptions, not accounting for the extra risk.
It may not seem fair that in the unusual situation where a person is severely injured, to the point of exhausting the company’s UM/UIM coverage, they won’t be able to use their personal coverage, but this is allowed under Pennsylvania law. .
How can I protect myself?
Insurance policies tend to be cookie cutter. They will not be tailored to an individual situation unless the person asks for it. If you often drive a car that you don’t own:
- Talk to your insurance company and/or insurance agent to be sure you understand your personal coverage.
- Talk to your employer to understand your work coverage.
We can never anticipate every risk. But if you have the proper information, you can make informed decisions.
After a car accident, hiring an experienced attorney is essential to protect your interests and get the best possible outcome for your case. Contact Aversa & Linn for help in evaluating your claim.
