What it does
When an insured damages a rented auto, the rental company can charge for the time the vehicle is out of service. The business auto form's hired auto physical damage pays these loss-of-use expenses only up to $30 per day and $900 in total. CA 99 90 Optional Limits – Loss Of Use Expenses lets the insured choose higher limits, as its title indicates.
Who needs it
Companies that rent trucks, vans or equipment-carrying vehicles, whose daily rental rates and downtime charges exceed the built-in limits.
Key points
- The policy must carry hired auto physical damage for the loss-of-use extension to apply.
- Rental reimbursement for the insured's own autos is a different coverage (CA 99 23).
Quoting notes
Ask what vehicles the client rents and their daily rates, and set the optional limits accordingly.
