Which policy will pay for the damage to the temporary substitute automobile when all policies exist and carry full coverage?

• A. The policy of the insured
• B. The policy of the innocent motorist
• C. The policy of the owner of the temporary substitute automobile
• D. All of the above will contribute equally

Answer: (C)

When a temporary substitute automobile is damaged, the insurer attached to the vehicle involved pays first. That substitute car is owned by someone else, so its owner’s policy is primary for paying damage to that vehicle, even if the other policies are in force. The driver’s own policy mainly covers the driver’s liability and, in some cases, damage to the driver’s own car, but not the borrowed car’s damage as the primary payer. The innocent motorist’s policy covers its own vehicle and their own injuries, not the damage to the substitute. Therefore, the owner of the temporary substitute automobile is the policy that pays first.