Dealers Drive Away Collision Coverage

April 9, 2012

Regarding the Garage Coverage Part, exclusion 4c, Physical Damage coverage, there is a 50 mile limitation for coverage away from premises, but that only applies to a collision loss. One can add the endorsement Dealers Drive Away Collision Coverage (CA 25 02) which removes the 50 mile radius and provides collision coverage throughout the covered territory.

However, this endorsement does not mention Comprehensive (Comp) coverage. It seems logical and fair to provide comp coverage if an auto dealer was delivering a vehicle and it got caught in a hail storm. In this case, the new owner would want that damage fixed before taking delivery, but no coverage would exist for the dealership.

Is there a way to get Comp coverage for an auto dealership when they are delivering a vehicle away from the insured premises?

Ohio Subscriber

The standard garage coverage form does not have a limitation on comprehensive coverage to insured premises. The coverage territory is the U.S., Puerto Rico, and Canada. Also, the reference in the exclusion to fifty miles for collision coverage is just that, a reference to collision coverage. Since there is no mention in the exclusion pertaining to comprehensive coverage, this means there is no 50 mile limit on the comprehensive coverage. Perhaps you have a company-specific garage form that differs from the standard ISO form?