Is damage to a covered auto while being transported from a seller to a garage covered by a garage policy?

Prepare for the Auto Insurance Exam with study tips, flashcards, and multiple-choice questions. Each question includes hints and explanations to ensure you're exam-ready!

Damage to a covered auto while being transported from a seller to a garage is not covered under a garage policy because it is specifically excluded. Garage liability insurance typically covers vehicles that are in the possession of the insured for repair or servicing. However, the policy does have limitations regarding coverage during transportation. If the vehicle is in transit and not under the immediate care of the garage, it may fall outside the realm of the coverage offered by a typical garage policy, meaning that any damage incurred during that transit would not be compensated. This highlights the importance of understanding specific exclusions within an insurance policy to ensure proper coverage is in place for different circumstances.

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