Collision insurance for “drive-away” automobiles

Collision insurance for “drive-away” automobiles shall be written at the regular Manual rates for “drive-aways” (see collision rates for Garages, Automobile Dealers and Manufacturers); subject to the minimum premiums per automobile per trip as shown in the Miscellaneous Rate Section. Check out more tips on our blog.

The policy shall cover the assured’s legal liability for injuries to, or death of, any person (excluding employees while in the course of their employment) or damage to property of others, caused during the policy term within the limits of the United States and Canada, by any automobile manufactured or assembled and sold by the assured, or by any automobile repaired by the assured: such personal injury or property damage being due to or alleged to have been due to a defect in the material, assembling or repair of said automobile; excluding, however, liability for damage to or destruction of the automobile itself.

The policy shall require the assured not to enter into any contract, agreement or understanding tending to deprive the company of its subrogation rights against parts’ manufacturers. The assured shall also agree to keep an accurate record of all automobiles manufactured or repaired.

This form of insurance shall comply with the general rule that no policy shall be written to cover for a longer term than one year.

Refer all such risks to the Company for rating. (Manufacturers For Defect Coverage for manufacturers of Other Auto- automobile parts, refer to the Public Liability mobile Parts) Manual.

A policy issued on the “named driver” or “specified car” basis shall not name more than one assured, except at an extra charge of 5% for one additional named assured, VA% for two additional named assured, and 10% for three or more additional named assured; such percentage to be based on the Public Liability and Property Damage premium but not on the Collision premium.


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