Recent decisions in Pennsylvania appear to be eroding the Regular Use Exclusion in Pennsylvania. Most automobile insurance policies in Pennsylvania contain a “regular use” exclusion to insurance coverage whenever an injured individual was in a vehicle that was regularly available for that individual’s use but was not covered by the insurance policy at issue. The rationale for this exclusion is to prevent an insurance carrier from providing coverage to an injured party where, unbeknownst to the carrier, the injured party regularly used another vehicle which was not covered under the carrier’s policy because the carrier has not been paid a premium by the injured party to cover that risk.
Historically, this exclusion to coverage has survived challenges to its validity in Pennsylvania courts and recently has continued to do so. (See Williams v. Geico Government Employees Insurance, 32 A.3d 1195 (Pa. 2011); and more recently in two unpublished Pennsylvania Superior Court cases: Rawl v. Geico, No. 1086 WDA 2019, 237 A.3d 1042 (Pa. Super. 2020)(unpublished) and Eckert v. Unitrin Auto Home Insurance, No. 1013 EDA 2019 (Pa. Super. 2020)(published)).
This seemingly secure footing for the “regular use” exclusion, came under attack by the recent case of Rush v. Erie Insurance Exchange which is currently making its way to the Pennsylvania Supreme Court.Continue reading