Symbol 31 Coverage

August 31, 2015

The question relates to physical damage coverage with Symbol 31 under the garage policy. I assume that once a car is registered to a purchaser, the car no longer is a dealer auto and therefore coverage for physical damage no longer attaches. My problem is somewhat unique in that a purchaser bought a vehicle, the car was then registered to the purchaser, but the dealer was still carrying the paper on the vehicle when the car was damaged.

Would that be covered in the declarations because the column checked off was “Your Interest Only in Financed Covered Autos”? In other words, does the policy attach even though the car has been sold and registered to the purchaser, but the dealer carried the paper? Or does it not attach because once registered to the purchaser, the car is no longer a dealer auto?

Illinois Subscriber

The coverage is for the type of auto and interests in the auto. The types of autos covered are new autos and used autos, demonstrators, and service vehicles. Presumably, the auto was either new or used, so the type of auto is covered.

Now, the coverage is for the type of auto and interests in the auto. The type is covered as noted, so if the insured has the paper on the car, the insured has a financial interest in the covered auto. You may want to check to make sure this is the case on a legal basis, but an entity holding the paper on a car certainly has a financial interest in that car. So, the policy is going to cover the insured's financial interest in the car, whatever that is.

This being said, the purchaser's PAP should offer the primary coverage since the purchaser owns the car, and the garage policy should be on an excess basis since the car is a nonowned vehicle under the policy.