The appellant rental car company sued the respondent renter and his insurer for a $10,000 deductible incurred after the rented vehicle was damaged in an accident.
The rental agreement required the renter to pay the deductible regardless of fault.
The Small Claims Court dismissed the action, finding it was barred by s. 263(5)(a.1) of the Insurance Act.
On appeal, the Divisional Court upheld the dismissal, confirming that the statutory first-party payor system prohibits rental companies from suing renters for deductibles incurred under their own direct compensation property damage coverage.
