Under what condition does automatic loss of use coverage end?

Prepare for the IBABC Automobile Insurance Exam with our multiple choice questions with explanations and hints. Study effectively with our engaging quizzes and ensure you're exam-ready!

Automatic loss of use coverage typically ends when the insured vehicle is found and repairs are made. This is because loss of use coverage is designed to provide compensation for alternative transportation costs while the insured vehicle is unavailable due to a claim, such as theft or an accident. Once the vehicle is recovered and restored to a drivable condition, the need for loss of use coverage ceases, as the insured can once again utilize their vehicle.

The other scenarios mentioned do not align with the conclusion of loss of use coverage. For example, a specific timeframe like 30 days from the incident does not universally apply; it depends on the situation of the vehicle. Similarly, modifying an insurance policy or selling the vehicle are separate events unrelated to the restoration of the vehicle's usability after an incident. Therefore, the correct understanding focuses on the moment when repairs are made, reinstating the insured's access to their vehicle.

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