If rental company self-insurance doesn cover the driver, what are the respective rights and obligations of the rental company and the driver?
Because there is no insuring relationship between self-insured rental companies and their renters, their relationship is only that of vehicle owner and permissive user. In its capacity as a vehicle owner, the rental company has statutory liability with limits of $15,000/30,000/5,000 for injuries caused by permissive users of its rental vehicles under Vehicle Code §§ 17150 and 17151. But, under Vehicle Code § 17153, the rental company is subrogated against its permissive user for any amounts the rental company is required to pay as the vehicle owner. Accordingly, as between a self-insuring rental company and its permissive user, the ultimate responsibility for an accident involving a rental vehicle will fall upon the permissive user and, therefore, upon his or her liability insurer.
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