Personal Auto PolicyQuestion 25 of 474
An insured's vehicle is in the shop for two weeks after a covered collision. Which optional Personal Auto Policy coverage would pay for a rental car during the repair period?
a.Comprehensive deductible reimbursement, an add-on that refunds the deductible after a covered glass or theft repair has been completed
b.Medical Payments coverage, which pays reasonable medical expenses for the insured and any passengers injured in the accident
c.Transportation Expense coverage (often called rental reimbursement / loss of use)
d.Towing and labor coverage, which reimburses the tow to the nearest repair facility up to a per-disablement limit such as $75
Explanation
Transportation Expense (rental reimbursement, sometimes labeled 'loss of use') is an optional Part D add-on that pays a daily amount toward a rental vehicle while the insured's covered auto is out of service due to a covered loss. Towing and labor coverage pays only for the tow itself, not the rental. Medical Payments and Comprehensive do not pay for rental cars.
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Related questions on this topic
- A friend borrows the named insured's covered auto with permission and causes an at-fault accident, injuring a third party. Under the Personal Auto Policy:
- California law generally treats 'diminished value' (the loss in a vehicle's market value after a high-quality repair) under a first-party physical damage claim as:
- An insured's vehicle is damaged in a covered collision. The cost to repair plus the salvage value of the wreck exceeds the vehicle's actual cash value. Under the Personal Auto Policy, the loss is most appropriately handled as:
- Which of the following is the BEST example of a use that is excluded by the Personal Auto Policy and would NOT be covered without a special endorsement?
- A California driver is hit by a driver who has fled the scene and was never identified, and the victim suffers bodily injury. Which Personal Auto Policy coverage is most likely to respond to the victim's bodily injury claim?
- Which of the following is a permissible OPTIONAL rating factor for personal auto in California, used only AFTER the three mandatory primary factors?
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