Our personal auto policy (PAP) insured borrowed a friend's car to drive, which broke down. He then used his own car to tow the friend's car with a long tow rope. Our insured's wife was behind the wheel of the friend's car.
They were starting to tow the car, but at the first right turn they took the towed car's steering wheel locked up, and the car continued straight and hit a parked car. Our insured's wife had forgotten to turn the key on all the way, unlocking the steering wheel. Otherwise, she would have been able to steer and brake the car.
We think the friend's own car insurance is liable since insurance follows the car. Further, because it was being steered and braked by an actual driver, we did not think it qualified as a trailer.
But the friend's insurer says our insured is liable for the third party damage because our vehicle provided the power, and gave the example of a car on the back of a tow truck hitting another car.
Which vehicle's insurance is primary for the third party's damage and why? Are we responsible for the damage to the vehicle being towed?
Utah Subscriber
We believe the insured could be held liable because he was towing the car and did not take precautions. We believe that the wife could be held liable as well, since she did not unlock the steering wheel. Since both are presumably on the same policy, that is the one that should pay for the damage to the third party.
The friend and his policy should not come into play since he was not even at the scene. A court may hold he is liable because he owns the car, but we think that is a stretch.
As for the damage to the friend's car, the insured's liability coverage will not respond because of the care, custody and control exclusion, but the physical damage section of the PAP should pay for the damage as a nonowned vehicle. Of course, this coverage is excess.
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