UPDATED!! Accident with a Dealer Loaner

[scode]

I am looking for an opinion for my Son. He dropped off his 03 Cobra for some work at the Dealer. They gave him a Mach E as a loaner in hopes he would purchase one.

He signed the paperwork and in it was Insurance info that it was covered by Progressive, which just happens to be his insurance as well. The bad news is he was leaving my house at night, backing down the driveway and you guessed it, he hit a tree and it suffered significant damage. He contacted Progressive and they stated they DON'T cover dealer loaner vehicle's. When he informed the Dealer they stated he would have to pay for it himself, they would not cover it under their insurance. But then they stated if you buy a new Mach E we will bury the repair cost in the purchase.

This doesn't sound right to me, why would their insurance coverage not pay for this? Looking for opinions.

 

[ReverendPete]

Hmm, seems like his insurance should cover him driving the car with the same limits as it would have on his own car, just like they would with a rental car. Seems like the dealer is playing games...

 

[hybrid2bev]

My dealer won't give you a rental if you have Progressive insurance. They have a big sign on the service desk about it.

The dealers insurance is for when the car is on their lot, under their control. Once you drive it away, it's on you and your insurance.

 

[BMT1071]

My dealer won't give you a rental if you have Progressive insurance. They have a big sign on the service desk about it.

The dealers insurance is for when the car is on their lot, under their control. Once you drive it away, it's on you and your insurance.

It seems we now have real-world confirmation of why they have that policy.

 

[RickMachE]

Pretty clearly states on the form that he is responsible for damage, not the dealer, and where it says Progressive it says "BORROWER", i.e. your son.

Before renting a car, or using a loaner, you need to verify insurance coverage with YOUR company. Progressive is one of those cheap companies where you get what you pay for. He should read his policy.

 

[hayhayday]

Does your son have collision coverage on his car or only liability? If he has collision I would check what policy says about temporary vehicles as rentals are typically covevred but if liability only he is most likely on the hook for damages.

 

[generaltso]

Depends on the state. Some states require that the insurance follows the car, while other states require the insurance to follow the driver.

 

[tuminatr]

You should review the policy it is very possible that it does not cover loaners or rental vehicles. Also, check out the liability limits I was an insurance agent for a stent and am very surprised how many people are at state minimums for liability limits. in MN it's 30/60/10 so the insurance company only needs to pay 10k in property damage.

 

[Hammered]

I don't understand how someone can back into anything given the backup camera on pretty much every vehicle. The dealer has insurance on it, it ultimately comes down to what's on the contract he signed and how much they're willing to spend trying to collect it.

 

[Monke]

I don't understand how someone can back into anything given the backup camera on pretty much every vehicle. The dealer has insurance on it, it ultimately comes down to what's on the contract he signed and how much they're willing to spend trying to collect it.

The screen may not turn on or freeze while backing up like my MME and others.
https://www.macheforum.com/site/threads/blank-screen-every-morning.28232/

 

[933233311602]

> He signed the paperwork and in it was Insurance info that it was covered by Progressive, which just happens to be his insurance as well.

I think you're reading this part wrong. The scanned document you attached says the BORROWER'S insurance company is "Progressive". The borrower is your son; not the Dealer.

Part (4) of the agreement your son signed says, "Borrower agrees to be liable for all costs of repairs of the vehicle regardless of fault." That clearly means what it says. Your son agreed to be responsible for the costs of damage when he signed that paper and took the car.

 

[Mach-Lee]

If son's insurance won't pay for it, then son has to out of pocket.

Lesson - don't use Progressive.

 

[NewGuy]

A lot of credit cards cover rental cars. If he paid the repair cost with a card, I wonder if there’s any recourse there.

 

[Just Lurking]

It's right in paragraph 4 of the agreement. Note the last sentence which I bolded:

(4) Borrower agrees that while this Agreement is in force he/she will preserve and protect the Vehicle from loss or damage. Borrower agrees to be liable for all costs of repairs to the vehicle regardless of fault. Borrower is specifically advised to be certain that his own automobile insurance coverage will provide for payment of such loss in the event of any accident.

I agree with others as to the absolute worthlessness of Progressive. Many years ago a Progressive driver rear-ended me at a stoplight and they were awful to deal with. I've never even considered using them since.

 

[RickMachE]

The screen may not turn on or freeze while backing up like my MME and others.
https://www.macheforum.com/site/threads/blank-screen-every-morning.28232/

Easy solution. Stop, put it in Park, and resolve the problem.

A lot of credit cards cover rental cars. If he paid the repair cost with a card, I wonder if there’s any recourse there.

Car was free, repair documents likely won't specify loaner, and no contract contains the credit card because repairs are in process...

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