Q

We insure a garage under a standard ISO garage form. Collision coverage is provided for customer cars on the garagekeepers portion. A mechanic was test-driving a customer's car, blacked out, and wrecked the car.

We agreed to pay for the damage to the car. However, do we also owe the customer the cost of renting a replacement vehicle during the repair period?

Ohio Subscriber

A

The rental costs should be paid if the direct damage is covered. The current ISO garage policy defines “loss” as “direct and accidental loss or damage. But for Garagekeepers Coverage only, 'loss' also includes any resulting loss of use.”

The rental expenses fall under this definition.