Many employees drive cars from the company for their duties related to work. But if the company car was your only car? Even as an employee of the company, it is likely that you are not on the automotive business policy of the company.
So what happens when you borrow your neighbor's car to run some errands on the weekend? This situation can leave you with serious gaps in coverage. As part of a business auto policy, people who use a car borrowed for personal use are not covered, even if the policy covers cars hired or borrowed. The individual must be listed as an insured on the policy automotive business of the company to have coverage.
Eliminating these gaps in coverage can be complicated. Although there is no simple solution, you have some options.
First, check with your employer to make sure you are allowed to use your company car for personal use. If you are not authorized to use the vehicle for personal use, then you must ensure that you have a personal automobile policy; and, of course, do not use the company car for personal use.
Even if your company gives you permission to use your company car for personal use, you probably will not be covered for the vehicles you borrow or rent. Here are two options for this type of situation:
- Purchase of non-owner named Auto Policy. These policies are for those who do not own cars, but coverage of desire for cars they borrow or rent on their behalf. Coverage can be limited coverage and some exclusions may apply, so be sure to ask your agent regarding this policy.
- Ask your company that you add to its policy of automobile business with another car drive endorsement. It adds the person (s) named in the approval and their spouses while using a covered car for personal use. Again, coverage may be limited and exclusions may apply.
There are some other options available depending on your personal situation. Whenever possible your best bet is to buy a personal automobile insurance policy. It is difficult to match the insurance coverage included in a personal auto policy with regard to the situations listed above. Another advantage of buying a personal auto policy is that lately, the home insurance market has experienced a rapid increase in premiums. Buying a personal automobile insurance policy can save you money on your home insurance as most companies offer multi-policy discount.
The insurance cover for you and your company car can be complicated. The options I noted here are a few that are available. Make sure to review your situation with your independent insurance agent to be sure you are protected.
The warranties described above are in the most general terms and are subject to conditions and actual policy exclusions. For the wording of the cover, conditions and exclusions, see the policy or contact your independent agent.
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