Substitute car, insurance application

by Mike of the Ozarks » Mon Apr 05, 2010 01:44 pm

So when exactly is a vehicle considered substitute transportation and thereby covered on your policy instead of the policy on the vehicle that is the substitute?

Rental vehicles are an example, but what about someone using your truck to move furniture, trash, appliances because they have a car?

How about four women go shopping upstate and take one car, they all had insured cars they could have driven, but they chose one for convenience or gas savings. If wrecked would the non owner driver policy apply?

I loan my car to someone because (I am in the repair business)I am repairing theirs?

What are other examples and applications and does this practice apply in most states?

Total Comments: 1

Posted: Mon Apr 05, 2010 07:21 pm Post Subject: Depends on the company!

Generally a vehicle is covered as a substitute when the vehicle insured (listed) on the policy is disabled due to a covered loss, mechanical breakdown etc... This transfer of coverage is different from company to company and policy form to policy form. Check yours if you have a questions about temporary replacement vehicles or call your agent.

In your second question, if you loan your Truck to someone your coverage goes with it. Its called permissive use.

In question 3, the coverage follows the car. Who's car is used for the upstate shopping trip, their company pays for the loss.

Question 4, Garage keepers liability is the coverage a repair facility needs to purchase to cover losses to other people's property while in their care custody and control.

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