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I have a customer that I am trying to help out. His friend got a rental car and let him drive it. My customer crashed the vehicle in to his own gate and caused about $3000 in Property Damage to his vehicle. His friend did not purchase the optional insurance on the vehicle at the rental place. My customer only carries Liability with UMBI/PD but not Physical Damage (comp and coll). I know it might be a stupid question but would his liability insurance cover him for the damages caused to the vehicle he was driving since it was not his vehicle (in case he gets sued by the Rental Company?)
Liability insurance WILL NOT cover damage to an insured's vehicle, let alone a rental! ALWAYS purchase rental insurance from the dealer and name ALL drivers. There are MANY items that ARE NOT covered by the standard auto policy, such as; towing, storage, depreciation, and the dealers loss of use!
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Liability polices exclude property in your care custody and control. Your client would need auto comprehensive and collison coverage on his vehicle policy to cover damage to non-owned vehicles. He would also need permission from the owner of the non-owned vehicle for coverage to apply which he does not have. The only good news is that his home-owners policy will cover damage to the gate , bot not to the car.