Arizona Adjuster Practice Exam

What is the daily limit of coverage for temporary transportation expenses if a private passenger vehicle is stolen under Transportation Expenses coverage?

1. $30

2. $15

3. $20

4. $50

The correct answer is: $20

The daily limit of coverage for temporary transportation expenses under Transportation Expenses coverage for a stolen private passenger vehicle is indeed set at $20. This amount reflects the coverage provided to the insured while they are unable to use their vehicle due to theft. Transportation Expenses coverage is designed to help soften the financial impact of losing access to a vehicle by offering reimbursement for alternative transportation. This can include expenses related to renting a car or using public transit. The daily limit is capped to ensure that the coverage is manageable for insurers while still providing necessary support to policyholders during a stressful time. This $20 limit strikes a balance, allowing insured individuals to find sufficient transportation without leading to excessive costs that could burden the insurance provider. Understanding these limits is crucial for both policyholders and adjusters when assessing claims related to stolen vehicles.