Lurking in the standard automobile policy used in North Carolina is a trap for the unwary. The standard policy extends coverage to a temporary substitute automobile if the insured vehicle is out of normal use because of its breakdown, repair, servicing, loss, or destruction. However, the temporary substitute automobile cannot be owned by the person operating it as a substitute. In addition, coverage for a temporary substitute automobile has been denied when the covered vehicle was still operable although in very poor condition. If you intend to temporarily use a motor vehicle for convenience while your regular vehicle is otherwise available for normal use, you should contact your insurance agent regarding possible coverage for this temporary vehicle.
If you have any questions regarding the law covering insurance coverage on your motor vehicles contact Bill Cannon or Martha Bradley at (828) 456-4800 for further information.