Most personal auto policies include some additional coverages. The policies do not actually use this term; however, the concept fits. This is also an area where there is some variation between the policies offered by different insurers.
Understanding the scope of these additional or supplementary coverages might be a reason for you to choose a policy from one insurer or another. The ISO personal auto policy labels this category of coverages as Transportation Expenses.
The ISO personal auto policy provides for payment of up to $15 per day, subject to a maximum of $450, for temporary transportation expenses actually incurred by the insured in the event of a loss to your covered auto.
This coverage applies only if there is coverage for the underlying loss (i.e., the policy covers comprehensive or collision losses). Higher daily limits and higher per-loss maximum limits are available from most insurers for nominal additional premiums. You merely need to ask what limits your insurer offers, learn how much the insurer charges, and make your own decision.
This coverage is not coverage for transportation expenses incurred because of breakdown of your vehicle. It applies only in the event of a covered collision or comprehensive loss and if you have paid an additional premium for the transportation expense coverage.
Under the ISO personal automobile policy, there are some limitations of which you should be aware.
If loss is due to a total theft of your covered auto or of a nonowned auto, transportation expenses are payable during the period beginning forty-eight hours after the theft and ending when your auto is returned to you or the insurer pays for the loss.
If loss is due to a cause other than theft, coverage for transportation expenses applies only after your auto has been out of service for more than twenty-four hours. It is also limited to the amount of time reasonably required to repair or replace your car.
While the basic ISO personal auto policy does not include coverage for towing expenses, many auto insurers include coverage for towing your vehicle to a repair shop if it is disabled as the result of one of the comprehensive perils.
There are commonly two preconditions for such towing coverage to apply: first, the insured must have purchased comprehensive coverage, and second, the work or labor must be performed on your vehicle at the place of its disablement.
Some insurers offer towing coverage subject to a specific dollar limit. Others reimburse for reasonable expense, recognizing that vehicles can become disabled as a result of covered causes of loss in inconvenient locations.
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1. Insurance coverages have various conditions that apply to them
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