PA Superior Court determines the “regular use” exclusion is unenforceable.

The plaintiff, a police detective, was driving a police car owned by his employer at the time of the incident. The plaintiff owned three personal vehicles on two insurance policies through Erie Insurance. He brought suit against the other drivers and the City of Easton, where he worked. All parties resolved their cases with the plaintiff with their policy limits. The plaintiff then filed a claim for UIM benefits. Both of the policies the plaintiff owned included “regular use” exclusion clauses. He filed a declaratory judgment action as Erie contended that it did not owe the plaintiff benefits due to the “regular use” clauses. In determining that the clause was unenforceable, the Pennsylvania Superior Court reviewed Section 1731(c) of the Motor Vehicle Financial Responsibility Law (MVFRL). This section provides that insurers afford insured UIM coverage when: (1) the insured has suffered injuries arising out of the maintenance or use of a motor vehicle; (2) the insured is legally entitled to recover damages from the at-fault underinsured driver; and (3) the insured has not rejected UIM coverage by signing a valid rejection form. The court determined that the “regular use” exclusion limits the scope of coverage required by MVFRL and, thus, is unenforceable. The issue has reached the federal court level, where the Middle District of Pennsylvania predicts the regular use exclusion will be found invalid and unenforceable. See Evanina v. First Liberty Insurance Corporation, 2022 WL 584499 (February 25, 2022). For now, the Superior Court ruling prevents insurers from denying claims based on the “regular use” provision. 

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