LYNN – Massachusetts Senate has voted to approve An Act Relative to Affordable Car Rentals Bill in an effort to manage car rental costs for residents and visitors.
Currently, Massachusetts, South Carolina, and Washington, D.C., are the only areas in the United States that require rental companies to shoulder the primary insurance for the cars they rent out to customers. However, in most states, rental car companies apply the customer’s personal auto insurance to the car they are renting and driving.
This means that in Massachusetts, if a rental car driver gets into an accident and is found to be at fault, the rental car company pays for the damages. These coverage costs are baked into rental rates, making Massachusetts one of the most expensive places to rent a car.
Further, since most personal auto insurances in other states already include rental car insurance, those who rent a car in Massachusetts are paying the rates twice if they already have a car and car insurance.
Sen. Julian Cyr (D-Truro), primary sponsor of the An Act Relative to Affordable Car Rentals Bill, called the current requirement “outdated” during last Thursday’s Senate Session.
However, An Act Relative to Affordable Car Rentals bill aims to bring Massachusetts onto the same playing field with the fast majority of other states when it comes to car rental costs.
The legislation will hold the Massachusetts rental car driver responsible if they get into an accident and are found to be at fault. It updates car rental insurance requirements to maintain liability coverage on a secondary basis, making rental companies responsible only if the renter is uninsured or underinsured.
“By aligning Massachusetts with the rest of the country, we’re helping lower rental car prices for families, travelers, and anyone who needs to rent a car in a pinch and wondered why it costs more here than just about anywhere else. I’m proud the Senate has taken this step to make life just a little more affordable for our residents and visitors,” Cyr said.
Sen. Brendan Crighton (D-Lynn), Senate Chair of the Joint Committee on Transportation, voiced his support for the legislation.
“As we continue to tackle affordability issues in Massachusetts, we need to eliminate this unnecessary insurance requirement that is out of alignment with most other states. I was proud to help advance this legislation that takes the burden of covering primary insurance off of car rental companies, which will in turn prevent raised prices for consumers,” he wrote in a press release.
Don Lefeve, executive director of the American Car Rental Association, praised the Senate’s efforts with advancing the bill.
“This legislation brings Massachusetts in line with over 90% of states on the primary-secondary insurance issue. It’s a fair, common-sense reform that aligns Massachusetts with national standards, while helping to keep rental car costs affordable for consumers across the state,” Lefeve said.
An Act Relative to Affordable Car Rentals passed the M.A. Senate unanimously (39-0) last Thursday. It will now advance to the House of Representatives for consideration.
