by Tammy Schneider on Feb 02, 2018
Do you have a company owned vehicle that you drive for personal use but no car of your own? If you do, you may have a serious gap in your insurance coverage. Your employer's insurance will cover you while you are driving the car for their "business", but what happens when you are using it for your own personal use or you drive someone else's car?
A basis business auto policy does not provide insurance coverage for you while you are operating a "hired" or a "non-owned" vehicle. Here is an example: You fly home for a family wedding and while there, you drive a family members vehicle to run some errands. On the way, you miss a stop sign and hit another vehicle and there are serious injuries. The car you are driving is insured, but the policy only has the minimum liability limits.
The business auto policy also does not provide medical payments, uninsured or underinsured motorists coverage for an individual's spouse or other family members. Your wife goes shopping with one of her friends in the friends car. They are struck by another vehicle and the other vehicle was uninsured. Your wife's friend carries the minimum uninsured motorists coverage offered. You and your family will bear the expenses that are over and above the limits on the friend's policy.
It also does not cover a comprehensive or collision loss to any car you hire (rental car) or non-owned car that you or your family members may drive.
Drive Other Car Coverage, an endorsement to the Business Auto Policy, is used to cover these gaps in coverage. The endorsement can provide you and your family with liability, medical payments, uninsured/underinsured motorists and physical damage coverage for the examples above.
So, if you have a company car provided for both your business and personal use, and don't have your own personal car and insurance, you may want to discuss these gaps with either your employer or your insurance agent.
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