One of the great things about insurance is the often-times confusing terminology that is used in the industry. From “PIP” to “waiver of premium” to “named perils” this list is long and includes what we’ll write about today – “Drive Other Car” Coverage. This coverage is an important one in the right situations. Let’s dive in.
Simply put, Drive Other Car Coverage provides auto insurance coverage – liability, physical damage, med pay, and underinsured/uninsured coverage – for the personal use of a non-owned auto by the individual that needs protections. Non-owned autos could include car rental on vacation or borrowing an auto from a friend. Individuals could be persons that drive a company car and simply do not have their own personal auto policy.
Perhaps your business is a sole proprietorship. Adding an “Individual Named Insured” endorsement to the business auto policy will provide those individuals with the same type of coverage.
Let’s apply this to a real life situation:
Jim is a cabinet installer, and his corporate structure is a sole-proprietorship. Since he’s constantly working, he uses his work truck to drive everywhere. He insures the truck with a business auto policy. Jim also has a girlfriend, and when he’s with her, he drives her car to take her out to dinner. In this situation, we would want to add Drive Other Car Coverage to Jim’s business auto policy to cover him if he were to have an accident as the operator of his girlfriend’s vehicle.
Have a scenario where you’re not sure if Drive Other Car Coverage applies? List it in the comments and we’ll respond!
And as always, if you’re not sure if you need it or you’re simply paying too much, give us a call! We’d be happy to take a look at your policies with you to make sure you’re covered appropriately.