As previously announced, effective March 1, 2011, the maximum amount for vicarious liability claims have been capped at 1 million dollars on service loaners and courtesy vehicles when a vehicle rental agreement form is utilized as a standard practice of doing business.

Since this announcement, the MDA has been receiving dealer inquiries regarding customer insurance responsibility on dealer vehicles utilized as service loaners or courtesy vehicles.

The questions asked are:

  1. Do we require rental vehicle insurance?
  2. Can the customer sign a substitution of insurance form?
  3. Is the customer responsible for the insurance deductible in case of an accident?

If you are using vehicle rental agreement forms, for your loaners or courtesy vehicles, the MDA URGES you to contact your insurance provider to ensure that you and your customer are protected in the event of an accident claim.