[DavyNM]

I gave my own BMW to the dealer so they could perform 4 recalls that BMW initiated(braking system, dual-clutch transmission, software, headlight) On top of that, I asked them to do the first free oil change as well. They wanted it for at least 3 days, so they gave me a loaner.

The lady in charge of the loaners told me they only had 3 vehicles remaining and asked me to pick one. 330i, i4 and 740i. Obviously I picked the 740i.. mostly because it had the fewest miles, only 210. The other two had about 3000 miles each.

While I was driving home, I started wondering.... does my own car insurance policy cover a service loaner that costs more than double of my own BMW? The window sticker on the 740i was still on the window and it showed a $120,000+ MSRP. I dont' really want to call my insurance company and ask...

unfortunately, my area is currently having a very bad ice storm, so the 740i is just sitting in my garage not going anywhere. There's currently a little more than half inch of ice on the roads around me. Hope it will melt by Friday so I can take this bad boy out for some real driving?

[Rich76]

In the uk you would of signed a disclaimer with an excess on it to go on there insurance

[LogicalApex]

Loaner cars are generally considered "rentals" so is covered under your insurance.

But this is a question for your policy and or insurance agent. As You'll want to see if there are any details in there confirming coverage for loaners, how long it lasts, if it has limits on value and etc etc.

[tturedraider]

Yes, your insurance covers anything you are driving under “property damage”….up to your property damage limit. If you have a $50,000 limit on your property damage coverage and you total a $100,000 car only half the value would be covered by insurance and you would be responsible for the rest.

[DavyNM]

Originally Posted by tturedraider

Yes, your insurance covers anything you are driving under “property damage”….up to your property damage limit. If you have a $50,000 limit on your property damage coverage and you total a $100,000 car only half the value would be covered by insurance and you would be responsible for the rest.

so I decided to be a good boy and read most of my policy in detail. it does say service loaners provided by certified service providers are covered for me as well. The major exception are commercial vans and trucks, which I assume means U-Haul vans/trucks or Home Depo hourly pick-up trucks.

and yes, my property damage is $100k... plus I have an umbrella policy associated with my auto policy. does that mean if I get a Bentley service loaner next time, it will be covered? (my BMW dealer has a Bentley dealer behind them... belonging to the same automotive group)

[BlkGS]

Originally Posted by tturedraider

Yes, your insurance covers anything you are driving under “property damage”….up to your property damage limit. If you have a $50,000 limit on your property damage coverage and you total a $100,000 car only half the value would be covered by insurance and you would be responsible for the rest.

Exactly correct.

[LogicalApex]

Originally Posted by DavyNM

so I decided to be a good boy and read most of my policy in detail. it does say service loaners provided by certified service providers are covered for me as well. The major exception are commercial vans and trucks, which I assume means U-Haul vans/trucks or Home Depo hourly pick-up trucks.

and yes, my property damage is $100k... plus I have an umbrella policy associated with my auto policy. does that mean if I get a Bentley service loaner next time, it will be covered? (my BMW dealer has a Bentley dealer behind them... belonging to the same automotive group)

Policy should answer the question 👍🏾

For me in NY state my policy covers rental cars with no limit to the cars value. So for me, yes that Bentley or whatever would be covered at no extra premium cost and not capped to my property limits.

[Ugly Kar]

Misread

[Chihuahua]

Originally Posted by tturedraider

Yes, your insurance covers anything you are driving under “property damage”….up to your property damage limit. If you have a $50,000 limit on your property damage coverage and you total a $100,000 car only half the value would be covered by insurance and you would be responsible for the rest.

Originally Posted by BlkGS

Exactly correct.

Eh, close. Property Damage coverage typically refers to property damage liability, i.e. damage done to someone else's car/fence/house/whatever. Those coverage limits have nothing to do with your vehicle (a rental in this case). You want to look at your dec page and see what you have for your car, i.e collision coverage and/or comprehensive coverage. Those are the coverages that would apply if you were to damage a rental car. Those coverages typically max out at ACV unless you have some sort of stated value policy. Some states have statutes and coverage codes that are different from my example, but you get the gist.

[tturedraider]

Originally Posted by Chihuahua

Eh, close. Property Damage coverage typically refers to property damage liability, i.e. damage done to someone else's car/fence/house/whatever. Those coverage limits have nothing to do with your vehicle (a rental in this case). You want to look at your dec page and see what you have for your car, i.e collision coverage and/or comprehensive coverage. Those are the coverages that would apply if you were to damage a rental car. Those coverages typically max out at ACV unless you have some sort of stated value policy. Some states have statutes and coverage codes that are different from my example, but you get the gist.

Collision and comprehensive cover damage to YOUR car. The car YOU own. As you said, property damage covers your liability for damage to another entity’s property, which is exactly what a rental or loaner car is. Someone else’s property.

If you happen to own a beater and you don’t carry collision and comprehensive cover, both are totally optional unless there is a lien holder that requires them, but you have liability insurance, as required by law, both property damage and personal injury, that is what would pay for damage you caused to a rental car. Property damage coverage is what pays for damage to another person’s/entity’s vehicle regardless of whether you carry collision or comprehensive.

[sarafil]

Originally Posted by tturedraider

Collision and comprehensive cover damage to YOUR car. The car YOU own. As you said, property damage covers your liability for damage to another entity’s property, which is exactly what a rental or loaner car is. Someone else’s property.

If you happen to own a beater and you don’t carry collision and comprehensive cover, both are totally optional unless there is a lien holder that requires them, but you have liability insurance, as required by law, both property damage and personal injury, that is what would pay for damage you caused to a rental car. Property damage coverage is what pays for damage to another person’s/entity’s vehicle regardless of whether you carry collision or comprehensive.

Sorry, this is not accurate. 15+ year insurance veteran here. You are not interpreting coverage correctly.

Property damage is a 3rd party liability coverage. It applies to damage to another person’s car or property *caused by* the vehicle you are driving. Doesn’t cover damage *to* the car you are driving.

When you are operating a rental or loaner car, it is in your care/custody/control and you assume responsibility for the car via your rental agreement, so the insurance policy treats it as if it is your own car, not “damage to another entity’s property” - and the physical damage to the car is provided by your comprehensive & collision coverage. That is ACV minus deductible. If you don’t have comp & collision coverage on your policy, you won’t have coverage for damage to a rental or loaner.

[DanG]

Originally Posted by sarafil

Sorry, this is not accurate. 15+ year insurance veteran here. You are not interpreting coverage correctly.

Property damage is a 3rd party liability coverage. It applies to damage to another person’s car or property *caused by* the vehicle you are driving. Doesn’t cover damage *to* the car you are driving.

When you are operating a rental or loaner car, it is in your care/custody/control and you assume responsibility for the car via your rental agreement, so the insurance policy treats it as if it is your own car, not “damage to another entity’s property” - and the physical damage to the car is provided by your comprehensive & collision coverage. That is ACV minus deductible. If you don’t have comp & collision coverage on your policy, you won’t have coverage for damage to a rental or loaner.

This is exactly my understanding also.

[Chihuahua]

Originally Posted by tturedraider

Collision and comprehensive cover damage to YOUR car. The car YOU own. As you said, property damage covers your liability for damage to another entity’s property, which is exactly what a rental or loaner car is. Someone else’s property.

If you happen to own a beater and you don’t carry collision and comprehensive cover, both are totally optional unless there is a lien holder that requires them, but you have liability insurance, as required by law, both property damage and personal injury, that is what would pay for damage you caused to a rental car. Property damage coverage is what pays for damage to another person’s/entity’s vehicle regardless of whether you carry collision or comprehensive.

I work in the insurance industry for a major carrier. 20+ years. Manage a team of nine. We deal with this day in/day out. We get the 'I crashed the rental!!' call more than you'd think; it happens. When you rent a car in OP's scenario it becomes 'your covered auto' from a coverage standpoint, and any collision/comp coverage you have on your policy is what covers the rental. PD liability covers everything around you (not people).

Originally Posted by LogicalApex

Policy should answer the question 👍🏾

For me in NY state my policy covers rental cars with no limit to the cars value. So for me, yes that Bentley or whatever would be covered at no extra premium cost and not capped to my property limits.

This is the correct interpretation.