Robinson v. Coia, 183 N.J. 25

Summary

The Supreme Court of New Jersey held that a rental company may satisfy statutory liability requirements through self-insurance and is not necessarily required to provide primary coverage for a renter's liability to third parties. Because Avis's coverage and the renter's personal automobile policy each contained provisions making coverage excess to the other, the court treated the coverages as co-primary. The court reversed the Appellate Division and remanded for further proceedings.

Holdings

1. A rental company may self-insure to fulfill the liability requirements of N.J.S.A. 45:21-3.
2. Satisfying N.J.S.A. 45:21-3 does not require a rental company's insurance or self-insurance to be primary with respect to a renter's liability to third parties.
3. When Avis's coverage and the renter's other-insurance clause each purport to be excess to the other, the two coverages are treated as co-primary.

Questions Presented

1. Whether a rental company may self-insure its vehicles to satisfy New Jersey's statutory liability requirements.
2. Whether compliance with the statutory liability requirement requires the rental company's insurance or self-insurance to be primary over the renter's personal automobile insurance.
3. Whether Avis's excess-coverage provision and Brown's personal policy excess clause should be treated as mutually repugnant and therefore render the two coverages co-primary.

Disposition

reversed_and_remanded