Which type of loss is not covered under an auto dealer's garage policy physical damage coverage?

The correct response is that collision damage from a truck carrying a covered auto is not covered under an auto dealer's garage policy physical damage coverage. This specific situation falls outside the usual scope of coverage provided by such policies, which are primarily designed to protect the dealer's own inventory and vehicles in their care.

Auto dealer garage policies typically cover direct physical damage to vehicles owned by the dealer or in their care, custody, or control. When it comes to damage caused by a collision with a truck transporting a covered auto, the damage occurs due to the actions of a third party (the truck driver) and thus is not considered within the dealer's risk profile as covered under their policy provisions.

In contrast, damage from fire, theft, or vandalism is usually covered as these situations directly involve the dealer's vehicles and reflect risks associated with their business operations. Understanding the limitations of coverage in specific claims scenarios can help in managing expectations and making sound insurance decisions.