In GEICO Indemnity Company v. Kutasha, ____ So.3d ____ (Fla. 1st DCA March 10, 2010), Shazier rented a car from Avis. Shazier then loaned the car to Jordan. Jordan crashed the Avis rental car. Multiple parties sued Shazier, Jordan and Avis for injuries and death.
Shazier had rented the car when her vehicle was down for repairs. She was insured with GEICO. The GEICO policy provided coverage for a "temporary substitute auto" which was defined as
a private passenger, farm, or utility auto or trailer, not owned by you, temporarily used with the permission of the owner. This vehicle must be used as a substitute for the owned auto or trailer when withdrawn from normal use because of its breakdown, repair, servicing, loss or destruction.
The Avis rental agreement contained a provision that stated that Shazier was the only authorized driver, and that allowing anyone else to drive "will automatically terminate your rental."
The 1st DCA made short work of this case holding that the rental car was not a "temporary substitute auto" because at the time of the accident it was not being "used with the permission of the owner." Indeed, according to the Court, "Jordan’s use of the rental car automatically revoked the permission granted to Shazier by Avis."