A dealership loans a car to its customer to use while the dealership is repairing the customer’s car. If the dealership has business auto physical damage coverage and a customer’s automobile insurance does not cover damages to loaner cars, which of the following is true?

Insurance

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A dealership loans a car to its customer to use while the dealership is repairing the customer’s car. If the dealership has business auto physical damage coverage and a customer’s automobile insurance does not cover damages to loaner cars, which of the following is true?

1. No coverage is provided.

2. Only coverage for damage to a third party’s vehicle is provided.

3. The customer is personally liable.

4. The loaner vehicle is covered by the business auto policy.

Answer: 4. The loaner vehicle is covered by the business auto policy.

The above question A dealership loans a car to its customer to use while the dealership is repairing the customer’s car. If the dealership has business auto physical damage coverage and a customer’s automobile insurance does not cover damages to loaner cars, which of the following is true?, Was part of Insurance MCQs & Answers. I hope you got the correct answer to your question. Have a great time ahead.