Is garage policy excess over test-drivers personal policy?
On January 28, 1997, Sandra Glowe was “test-driving” a 1989 Chevrolet Cavalier owned by Hendrickson Motor Sales, Inc. A collision occurred and Glowe was injured; and her mother, Ruth Bilyeu, who was riding with her, was killed. Glowe had an auto liability policy with Atlanta Casualty Insurance Company with limits of $25,000/50,000–the minimum required by Indiana’s financial responsibility law. The policy’s “other insurance” clause stated that if there was other applicable liability insurance, Atlanta would pay only its share. It also stated: “Our share is the proportion that our limit of liability bears to the total of all applicable limits. However, any insurance we provide for a vehicle you do not own shall be excess over any other collectible insurance and the insurance on such a vehicle and any other collectible insurance shall be primary.” Hendrickson had a garage liability policy issued by General, which provided for a personal injury limitation of $300,000 per accident. It also
