FALSE PRETENSE, TRICK, AND DEVICE

Garage liability for automobile dealers excludes losses resulting from fraudulent acts committed by customers or potential customers. For example, suppose a customer goes to a dealership and wants to test drive a car. The salesperson allows the customer to drive the car alone and the customer steals the auto and drives to another state. Under the exclusion in the garage policy, the dealer has no coverage for the value of the car.A false pretense, trick, and device endorsement removes this exclusion. It also covers such possible losses as a dealer taking a car in trade to which the customer did not have legal title. The coverage is designed for automobile dealers but is also purchased by other entities that occasionally engage in the selling of automobiles such as banks and credit unions. (See Garage Liability).

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