Obtaining Underinsured Motorist Coverage for policy you did not pay for, disallowed by Superior Court

Plaintiff sustained injuries when he was operating a taxi owned by the Yellow Cab Company while driving home. He sued the other driver but then sought underinsured motorist benefits against his own auto insurance carrier, Nationwide. They refused coverage based on the policy language regarding “regularly used, non-owned vehicle” and “use for hire” exclusion clauses.

The Court found that even though the plaintiff operated a different cab each day, it constituted a regularly used, non-owned vehicle and rejected the contention that the “use for hire” clause did not apply because the cab was unoccupied.

The Court held that to require payment would permit the plaintiff to receive a windfall for coverage not paid for in the form of increased premiums due on vehicles for hire.