Rhode Island Insurance Adjuster Exam

Who has primary coverage when Person A crashes a borrowed car into a store window?

1. Person A's insurance

2. The store owner

3. The neighbor's insurance (coverage usually follows the vehicle)

4. The neighbor himself

The correct answer is: The neighbor's insurance (coverage usually follows the vehicle)

When determining who has primary coverage in the scenario where Person A crashes a borrowed car into a store window, the principle of "coverage follows the vehicle" is key. In most cases, when a vehicle is borrowed, the insurance policy insuring that vehicle (in this instance, the neighbor's insurance) is the primary coverage responsible for the damages resulting from an accident. This means that the insurance for the vehicle itself will respond first to cover the damages caused by Person A driving that borrowed car. While Person A's personal insurance may come into play as secondary coverage, and the store owner's pursuit of damages is valid, the primary liability falls upon the vehicle's insurance policy because it is the one directly associated with the car being driven at the time of the incident. Thus, in this situation, the neighbor's insurance would be the primary coverage responsible for addressing the damages to the store window caused by Person A's actions.