Personal Auto PolicyQuestion 402 of 531
After a covered collision an insured's only car sits in the shop for 40 days while she rents a car at $25 a day. On the standard form, transportation expenses are reimbursed as:
a.$600, the maximum the standard form allows
b.$800, forty days at the $20 daily figure
c.$1,000, since the daily cost was truly incurred
d.$975, allowing one day for the waiting period
Explanation
The standard form pays $20 a day toward transportation expenses with a $600 maximum for any one loss, so the daily rate is capped at $20 no matter what the rental really costs and the running total is capped as well. Even forty days at $20 would come to $800, which the $600 ceiling cuts back. Reimbursing the actual $25 a day ignores both caps.
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