What is a stated exclusion regarding non-owned autos in physical damage coverage?

The correct answer regarding stated exclusions related to non-owned autos in physical damage coverage is that coverage for rental vehicles if a damage waiver is included is a significant aspect. In many insurance policies, the physical damage coverage for non-owned vehicles, which may include rental cars, can depend on whether a damage waiver is purchased. When a damage waiver is included, it often means that the insurer may provide coverage under specific conditions for damages that may occur to the rented vehicle, alleviating some of the risks for the insured.

Understanding this concept is crucial because it highlights the importance of damage waivers in rental agreements. If a damage waiver is not purchased, the physical damage coverage may not extend to rental vehicles, thereby leaving the insured responsible for any damages incurred. This is pertinent for individuals who rely on rental vehicles for business or personal use, as having the proper coverage can mitigate potential costs from accidents or damages.

In contrast, the other options do not accurately reflect the nuances of non-owned auto physical damage coverage. For instance, coverage typically does not solely apply to vehicles owned by the insured but often has stipulations regarding usage. Additionally, while loss of vehicles used for business purposes is a common exclusion, it does not encapsulate the specific guidelines regarding rental vehicles and waivers