Regularly Used Non-Owned Vehicle Exclusion Upheld

Posted on: July 10th, 2012       Attorney Thomas Newell

An October 2008 PA Superior Court decision clarifies when an insurance company can legally use the regularly used non-owned vehicle exclusion in an auto policy to deny a Pennsylvania underinsured motorist claim.  A man from Pittsburgh was driving a taxi he leased from a cab company when he was hit by a negligent driver.  The defendant’s insurance company paid its policy limit.

The PA underinsured motorist attorney then filed a UIM claim against the taxi driver’s own private car insurance company – Nationwide.  The Pennsylvania underinsured motorist case was denied based upon exclusions regarding “regularly used, non-owned vehicle” and “use for hire”.

The Allegheny Trial Court Judge ruled in Nationwide’s favor, as did the PA Superior Court.  Since Nationwide did not insure the taxicab and that vehicle was being operated for the purpose of carrying passengers for compensation, the Pennsylvania underinsured motorist claim was properly denied.  Nationwide v. Easley, 960 A.2d 843 (Pa. Super. 2008)