Personal Auto PolicyQuestion 388 of 474
A mechanic test-drives a customer's car after a repair and rear-ends another vehicle. The mechanic's own personal auto policy:
a.Covers it up to the property damage limit per accident
b.Covers it, since the mechanic had permission to drive
c.Excludes it only if the mechanic owns the repair shop
d.Excludes the loss under the auto business exclusion
Explanation
Part A excludes liability arising out of employment or other use in the auto business, which the policy describes as selling, repairing, servicing, storing or parking vehicles. A test drive after a repair is business use, and a garage policy rather than a personal auto policy is written for it. Having the customer's permission does not matter, and neither does whether the mechanic owns the shop.
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