Tony owns two cars and has them both insured on a PAP. One of the vehicles he uses to drive to work and the other one, a fancy sports car, he uses for fun on the weekend. To generate some additional income, Tony enrolls in a vehicle sharing program and he lets a company by the airport in town rent his sports car to others during the week. Assume that a renter of his sports car is involved in an accident and injures someone. Would Tony's PAP cover the loss? Please reference any applicable coverage or exclusion in the PAP that would apply to this claim.
Under the given condition, Tony's two cars are insured on a PAP.
Tony's regular insurance does not cover the accident met by some other person. It only covers Tony's coverage under the condition that it covers the collision.It also covers liability.
At the time Tony start renting the car to some other person, he has to inform the insurance company for the same. He has to understand the current coverage of existing policy. When you let another person let drive your car, you are adding the responsibility for the driver.In such event, insurance companies may surcharge your premium. Ultimately, it's Tony's responsibility to pay the damages of insurance company rejects the claim. He can also negotiate with renter of the car to share or pass on the complete charges.
Tony owns two cars and has them both insured on a PAP. One of the vehicles...
Question 1: Alan has a PAP with the following coverages: · Liability coverages: $100,000/$300,000/$50,000 · Medical payments coverage: $5,000 each person · Uninsured motorists coverage: $25,000 each person · Collision loss: $250 deductible · Other-than-collision loss: $100 deductible With respect to each of the following situations, indicate whether the loss is covered and the amount payable, if any, under the policy. Assume that each situation is a separate event. a. Alan’s son, age 16, is driving a family car, runs...
Zipcar: “It’s Not About Cars—It’s About Urban Life” Imagine a world in which no one owns a car. Cars would still exist, but rather than owning cars, people would just share them. Sounds crazy, right? But Scott Griffith, CEO of Zipcar, the world’s largest car-share company, paints a picture of just such an imaginary world. And he has nearly 800,000 passionate customers—or Zipsters, as they are called—who will back him up. Zipcar specializes in renting out cars by the hour...