What is the basic principle behind transportation expense coverage?

The basic principle behind transportation expense coverage is to cover costs for substitute transportation after a physical damage loss occurs. This means that if a policyholder's vehicle is damaged in an accident or incident, and they cannot use it, the insurance provides financial compensation for alternative means of transportation required during the repair period. This coverage assists individuals or businesses by mitigating the inconvenience and potential additional costs associated with being without their primary mode of transport.

By addressing the need for substitute transportation, this coverage helps policyholders maintain their mobility and continue their daily routines without significant interruption, reducing the financial burden during the repair process.