Yes, that they will cover, but I seriously doubt they will cover the damage to the Jeep. Insurance does cover stupidity, but even that has its limitations.Will their insurance cover damages from all those pieces being spewed on the highway, and causing accidents / damage ?
It is most likely that the pieces of shrapnel (literally shrapnel because it surely went off like a bomb) have gone through the body itself in various places. The downstream damage would be horrendous. At 45,000 to 50,000 RPM as one estimate here put it, that drive train did not go quietly into the night ... LOL
All in all, pretty good advertisement for Dana though that their rear ends didn't explode.
You would have thought the driver would have felt that the tow was exceptionally hard to begin with. I'm sure he/she heard it when it went though !!!