§1296. Coverage of temporary, substitute, and rental vehicles
A.Every approved insurance company, reciprocal or exchange, writing automobile
liability, physical damage, or collision insurance, shall extend to temporary substitute motor
vehicles as defined in the applicable insurance policy and rental motor vehicles any and all
such insurance coverage in effect in the original policy or policies. Where an insured has
coverage on a single or multiple vehicles, at least one of which has comprehensive and
collision or liability insurance coverage, those coverages shall apply to the temporary
substitute motor vehicle, as defined in the applicable insurance policy, or rental motor
vehicle. Such insurance shall be primary. However, if other automobile insurance coverage
or financial responsibili
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§1296. Coverage of temporary, substitute, and rental vehicles
A. Every approved insurance company, reciprocal or exchange, writing automobile
liability, physical damage, or collision insurance, shall extend to temporary substitute motor
vehicles as defined in the applicable insurance policy and rental motor vehicles any and all
such insurance coverage in effect in the original policy or policies. Where an insured has
coverage on a single or multiple vehicles, at least one of which has comprehensive and
collision or liability insurance coverage, those coverages shall apply to the temporary
substitute motor vehicle, as defined in the applicable insurance policy, or rental motor
vehicle. Such insurance shall be primary. However, if other automobile insurance coverage
or financial responsibility protection is purchased by the insured for the temporary substitute
or rental motor vehicle, that coverage shall become primary. The coverage purchased by the
insured shall not be considered a collateral source.
B. A rental company, as defined in R.S. 22:1762, shall maintain security on all rental
vehicles meeting the requirements of the Motor Vehicle Safety Responsibility Law, R.S.
32:851 et seq., as follows:
(1) Such security maintained by the rental company shall apply only when there is
no other valid or collectible insurance or other form of security meeting the minimum
financial responsibility requirements under the Motor Vehicle Safety Responsibility Law.
(2) Notwithstanding a rental company's obligation to provide minimum financial
responsibility pursuant to the Motor Vehicle Safety Responsibility Law as the owner of the
vehicle for the privilege of registering and titling such vehicle, a rental company shall be
relieved of any security obligation under the Motor Vehicle Safety Responsibility Law when
the renter or driver has valid and collectible insurance, self-insurance, bond, deposit, or other
form of security in an amount sufficient to satisfy the minimum financial responsibility
requirements of the Motor Vehicle Safety Responsibility Law, when the claimant maintains
uninsured or underinsured motorist coverage for bodily injury or property damage claims,
or when the renter violates the terms or conditions of the rental agreement.
(3) Nothing in this Section shall be construed:
(a) To limit or restrict a rental company from providing by contract that the renter
or driver shall assume responsibility for satisfying any and all duties and obligations for
claims under the Motor Vehicle Safety Responsibility Law provided that the renter or driver
has valid and collectible insurance, self-insurance, bond, deposit, or other form of security,
which financial responsibility protection provided to the renter or driver shall be primary.
(b) To limit the ability of a rental company to pursue the renter or driver of the rental
vehicle for indemnity or contribution or both.
(c) To create an obligation by the rental company to defend renters or drivers of
rental vehicles.
(d) To render a rental company subject to R.S. 22:1269, 1892, or 1892.2.
(4) In the event that the rental company provides minimum financial responsibility
limits pursuant to this Section, the rental company shall be exempt from R.S. 22:1295 and
shall not be required to extend uninsured or underinsured motorist coverage or to offer
renters or additional authorized drivers an opportunity to accept, reject, or select lower limits
of uninsured or underinsured motorist coverage.