Drive Other Car Coverage Subject to a Deductible?

Our insured has a business auto policy with endorsement CA 99 10, drive other car coverage, attached. The CEO of the insured company rents cars for his own use and for his wife's use. The CEO damaged his car while backing out from a parking space; he ran into a light pole. The adjuster says there is no problem with coverage for the damage, but he wants to apply a deductible. We don't see any deductible listed on CA 99 10, so we were wondering if any deductible is applicable to this claim. What is your opinion?

Hawaii Subscriber

It is true that CA 99 10 does not have a deductible clause, but the endorsement begins with this phrase: with respect to coverage provided by this endorsement, the provisions of the coverage form apply unless modified by the endorsement. This means that since CA 99 10 does not have a deductible clause, the deductible clause on the business auto policy applies. So the deductible shown in the declarations applies to this claim. Your description of the claim makes this a collision loss, so whatever the deductible is for physical damage collision coverage under the auto policy is the amount that will be paid by the insured for this loss.

 

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