Page 139 - CARS Standard Program

Garage Keepers Coverage
This portion of the policy responds to claims of damage to the recovered collateral while in the Recovery Agency’s CARE, CUSTODY and CONTROL. This coverage is for physical damage to the recovered collateral, such as theft, vandalism, mischief, fire and explosion.
Example: The recovered collateral has been towed to the Recovery Agency’s storage facility. During the night the collateral is stolen and two other vehicles are vandalized. If a claim is filed, the Garage Keepers section of the policy would apply. It is extremely important to know that there are three coverage options within the Garage Keepers section:
qq Legal Liability qq Direct Excess qq Direct Primary
Rather than go into a lengthy explanation of these different coverage options, suffice it to say that Direct Primary is the most comprehensive and quickest to respond and the recovery agency owner should insist upon this coverage. Ask your insurance agent to provide you with a detailed explanation of each coverage option.
On-Hook Coverage
You have repossessed the collateral and are towing it to your storage facility. The collateral breaks loose from the tow truck and crashes into a telephone pole, causing extensive damage. The On-Hook coverage would respond to a claim in this situation.
Drive-Away Coverage
Simply stated, this coverage responds to claims made as a result of repossessing the collateral by driving it away, rather than taking it by tow truck.
Example: In the process of driving the collateral out of the debtor’s driveway, the Recovery Agent runs into a vehicle parked at the curb. Claims for damages will be addressed by the Drive-Away coverage.
Personal Effects Coverage
This coverage responds to claims of personal property missing from the recovered collateral. How many of us have been accused by a disgruntled debtor of stealing her cash or $10,000 diamond ring, even if the collateral was left parked on the street by the debtor, with its doors unlocked and windows down. This is one of the primary reasons why it is important to have a specific procedure for the inventorying, storage and protection of personal property. In Forms, Section 13 of this program you will find a document to be used when a debtor makes such accusations. This form should dissuade the filing of a false claim of missing personal property.