What type of coverage does the SPF 8 — Lessor's Contingent Automobile Policy provide?

The SPF 8 — Lessor's Contingent Automobile Policy is specifically designed to provide coverage for leased vehicles, but it does so on a contingency basis. This means that it acts as a secondary form of insurance, coming into play when the primary insurance policy held by the lessee (the person leasing the vehicle) does not provide the necessary coverage.

In situations where a leased vehicle is involved in an accident or sustains damage, the lessor (the entity that owns the vehicle and leases it to another party) would not be covered by the lessee's personal insurance, particularly if it does not cover certain types of losses or situations. The SPF 8 policy fills this gap, ensuring that the lessor is protected against financial loss related to the vehicle while it is leased out. This specialized nature of the policy underpins the correct choice, emphasizing the unique contingent aspect rather than comprehensive coverage for all vehicle types or ownership statuses.