Physical Damage Coverage — Temporary Substitute Vehicles

Q

We have a claim in which the insured rented a temporary substitute vehicle while his vehicle was in the shop. The insured has Symbol 7. The insured damaged the wheels of the rental auto and the agent argues that collision coverage transfers over to the temporary substitute. This is not my understanding of Symbol 7. What is your opinion?

North Carolina Subscriber

A

When symbol “7″ is used on a business auto policy, the insured is covered for physical damage only for the autos described on the declarations. The policy does provide liability coverage for temporary substitute autos.

This exposure could be covered by using symbol “1″ or by adding symbol “8″ to the “7.”

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