Rental Reimbursement under UM Physical Damage

March 4, 2014

On a commercial auto policy would rental reimbursement be covered under UM physical damage? Attached is the form we use.

Arkansas Subscriber

After reading the forms you sent, we see that the UM PD coverage applies to injury to or destruction of a covered auto including its loss of use. Since loss of use is not defined in the policy, a case can be made that rental reimbursement is covered. After all, if the insured has suffered a loss of use, he will have to compensate for that loss of use by getting another mode of use (transportation) and that can involve renting a substitute vehicle. So, we would say “yes” to your question, giving the benefit of the reasonable doubt to the insured.