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Pennsylvania State Senate
04/25/2024 02:53 PM
Pennsylvania State Senate
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20150&cosponId=18404
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Senate of Pennsylvania
Session of 2015 - 2016 Regular Session

MEMORANDUM

Posted: May 21, 2015 03:34 PM
From: Senator Donald C. White
To: All Senate members
Subject: Insurance Coverage for Auto Dealer Loaners
 
Auto dealerships are increasingly offering loaner vehicles to customer’s while their personal automobile is being serviced. Currently, Pennsylvania law is silent on whose auto insurance - the dealer's or the customer's - is responsible for damages to the loaner vehicle when the customer is driving it. Soon, I will be introducing legislation to clarify liability in these situations.

My legislation requires the customer’s personal auto insurance policy to be responsible for third party damages and, within the limits of the driver’s policy, physical damages to the loaner vehicle. Likewise, when the dealer has custody of the customer’s vehicle, the dealership’s policy shall be liable for third party damages and damages to the customer’s automobile up to the limits in the customer’s personal auto insurance policy.

If you have any questions regarding this legislation, please contact Carlton Logue of my staff at clogue@pasen.gov or 7-8724.

Introduced as SB861