Grand Rent a Car Corp. v. 20th Century Insurance

These cases involve priority of coverage disputes between Grand Rent A Car Corporation (Grand), a self-insured car rental agency, and automobile liability insurers of renters of Grand’s automobiles. The question presented is whether the car rental agreements together with Grand’s certificate of self-insurance constitute policies of automobile liability insurance providing primary coverage to renters of Grand automobiles pursuant to Insurance Code section 11580.9. We answer this question in the affirmative.

Facts

Grand is in the business of renting cars to the public on a short term basis. The cars are rented to the public pursuant to a written rental agreement. The rental agreement provides in pertinent part as follows: “Liability Insurance. Anyone driving the car as permitted by this Agreement will be protected against liability for causing bodily injury or death to others or damaging the property of someone other than the driver and/or the renter up to the limits stated in box 21 on the other side of this Agreement, but in no event less than the (minimum) financial responsibility limits required by applicable law. Such coverage will be provided by [Grand] according to…