Question

The Fitzgeralds (who have a PAP) are involved in an automobile accident that was not their fault on their way home from a dinner party. Although they are unharmed, their car is disabled. The police recommend that they leave the car by the side of the road and take a taxi home. When the Fitzgeralds return to the scene of the accident, they find that their car has been stripped down to the chassis. The Fitzgeralds submit a claim to their insurance agent for the entire loss.

Are the Fitzgeralds covered under the PAP? Explain.

What if the Fitzgeralds had not contacted the police and leaving the car was their own idea?

Answer 1

In the first question it was the government authorities that instructed them to leave the car by the side of the road. This means they did not have control over this action and since the car was stripped down, it will fall under the condition of theft. This is covered under the clause of “Other than collision” coverage, which is usually provided by personal auto policy (PAP). Thus the Fitzgerald are covered under PAP.

In case the Fitzgerald did not contact the police and leaving the car was their own idea then it can be construed ad negligence and the PAP will not cover such actions.