Does a self insured car rental company have a duty to defend the driver of a rental car?
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Asked March 12, 2019
A self-insured car rental company may have a duty to defend the driver of a rental car if they are sued for damages resulting from an accident. However, the duty to defend may depend on the specific terms of the rental agreement, as well as any applicable state and federal laws. In general, if a person rents a car from a self-insured rental car company, they are typically required to purchase some form of insurance coverage, such as liability insurance or collision damage waiver. This insurance coverage may provide some protection for the driver in the event of an accident. However, if the driver is sued for damages that exceed the limits of their insurance coverage, the rental car company may have a duty to defend them in the lawsuit. This duty to defend may arise if the rental agreement requires the rental car company to provide additional insurance coverage, or if state or federal law imposes a duty to defend on the rental car company. It's also worth noting that the duty to defend may be different from the duty to indemnify. The duty to defend requires the rental car company to pay for the driver's legal defense, regardless of whether they are ultimately found liable for damages. The duty to indemnify, on the other hand, requires the rental car company to pay for any damages that the driver is found liable for. To determine whether a self-insured car rental company has a duty to defend the driver of a rental car, it's recommended to consult with a licensed attorney who has experience in insurance law and car rental agreements.
Answered March 14, 2019 by kai127