Which type of coverage protects Kyle from any liability claims which may arise if one of the cars is further damaged or destroyed while in his possession?

Bailee coverage is specifically designed to protect an individual or business that temporarily has possession of someone else's property, which fits the scenario with Kyle and the vehicles. This type of insurance is relevant in situations where a person agrees to take care of another's property, such as a repair shop or a valet service. If an incident occurs while the cars are in Kyle’s possession—like further damage or destruction—bailee coverage would provide the necessary protection against liability claims that may arise from that situation.

Subrogation typically involves the process by which an insurer seeks to recover costs from a third party responsible for an insured loss, rather than providing coverage for liability claims directly. Non-owned vehicle coverage usually pertains to drivers using vehicles not owned by them but does not specifically cover liability for property damage to vehicles in one’s possession. Bailment refers to the legal relationship in which the goods are transferred temporarily into the care of another but does not imply coverage. Hence, bailee coverage aligns directly with Kyle’s need for protection against potential liability claims concerning the cars in his care.