What constitutes regular use under Utah automobile insurance policies? Valentine v. Farmers Insurance Exchange Explained

In Valentine v. Farmers Insurance Exchange, the Utah Court of Appeals addressed a critical question about underinsured motorist coverage and when an employee’s use of an employer’s vehicle constitutes “regular use” under insurance policy exclusions.

Background and Facts

Nicole Valentine worked as an auto parts delivery runner for Frank Edwards Company (Parts Plus). She would drive her personal car to work, then use one of the company’s trucks to make deliveries during business hours before returning to her personal vehicle at the end of her shift. While making deliveries in December 2000, Valentine was injured in a rear-end collision. After settling with the at-fault driver for policy limits and receiving workers’ compensation, she sought underinsured motorist benefits under her personal automobile policy.

Key Legal Issues

The central issue was whether Valentine’s use of the employer’s truck constituted “regular use” under a policy exclusion that barred coverage for vehicles “furnished or available for the regular use” of the insured. The Valentines argued that “regular use” should mean unrestricted, unfettered use similar to how one would use their own vehicle, not limited work-related use.

Court’s Analysis and Holding

The court rejected the argument that the phrase “regular use” was ambiguous. Instead, it held that regular use means use that follows a “recurring pattern or uniform course of conduct,” emphasizing frequency and consistency over unrestricted access. The court noted that Valentine used the company truck in a definite pattern each workday for her assigned deliveries, making her use both frequent and consistent with the purpose for which the vehicle was furnished.

Practice Implications

This decision provides important guidance for practitioners handling insurance coverage disputes involving employee use of employer vehicles. The court’s emphasis on pattern and frequency over unrestricted access means that regular work-related use of company vehicles will likely preclude coverage under personal auto policies, even when employees cannot use the vehicles for personal errands. This aligns with insurance policies’ purpose of preventing increased risk without corresponding premium increases.