Question

The insured is involved in an accident for which he is responsible while driving a temporary substitute automobile. Which insurance policy will pay for the damage to that automobile assuming all policies exist and carry full coverage?

A. The policy of the insured
B. The policy of the innocent motorist
C. The policy of the owner of the temporary substitute automobile
D. All of the above will contribute equally

Answer 1

The policy of the owner of the temporary substitute automobile is typically the primary source of coverage for damages to that vehicle due to an accident caused by the insured individual.

Step-by-step explanation:

In the scenario where an insured individual is responsible for an accident while driving a temporary substitute automobile, typically, the auto insurance policy on the temporary substitute vehicle would be the primary source of coverage for damages to that automobile. If the temporary vehicle has full coverage, its policy would pay first. The insured individual's policy might offer secondary coverage if the primary policy's limits are exceeded. However, without specific policy details, this is a general assumption. It's also important to note that the policy of the innocent motorist (Option B) would not be responsible for damages caused by the insured individual. Additionally, while in some cases multiple policies might contribute to the payment (Option D), they do not typically contribute equally but rather in order of responsibility defined by the insurance contracts.