If a consumer files a hit-and-run claim under their UMPD coverage should the rental (temporary substitute) vehicle be covered under that benefit? Or should the consumer's rental coverage be used?
Vermont Subscriber
That's a really good question – there's a particular Vermont UM endorsement that I don't have access to, but the PP 04 01 says that the limit shown on the dec is the most for all damages from any one accident regardless of insureds, claims, vehicles on the dec or vehicles involved in the accident. Under transportation expenses, it says that coverage is if loss is caused by other than collision or collision if those coverages are on the policy; therefore, the rental coverage on the policy is designed just for the physical damage losses. If the insured has an uninsured motorist claim, then rental should be included in the UMPD coverage, and not fall under the insured's rental coverage.
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Christine G. Barlow, CPCU, is Executive Editor of FC&S Expert Coverage Interpretation, a division of National Underwriter Company and ALM. Christine has over thirty years’ experience in the insurance industry, beginning as a claims adjuster then working as an underwriter and underwriting supervisor handling personal lines. Christine regularly presents and moderates webinars on a variety of topics and is an experienced presenter.