Wouldn’t you like vehicle protection that is flexible at meeting a variety of your needs? If so, it may be a smart idea to purchase additional Drive Other Car coverage. This protection allows for an extension of liability coverage to non-owned or hired vehicles. Every household individual must be listed in order for this coverage extension to apply to all members of household. Once the extension is available, each household member will be provided with liability coverage for any auto that is hired or borrowed. However, there are two exceptions. The first is that no household member can own a personal vehicle, thereby not having personal automobile coverage. Second, the vehicle may not be of any household member that is running or is in the process of running a business as a car dealer, repair operation or parking lot.
Do you remember Tim from Part One who ran a stop sign and hit into a minivan? His accident occurred while using his friends car. If Tim’s commercial auto policy had the additional Drive Other Car coverage, he would have had coverage for the damage and injury caused, up to the amount that appears on the Drive Other Car Coverage form.
Blood-related household members, including those married and adopted, who drive non-owned and hired vehicles, will be protected under the Drive Other Car Coverage form. These individuals will be covered as long as they are household residents. The form also extends Auto Medical Payments and Uninsured And Underinsured Motorists coverage. These coverages must appear as selections on the form as well as appear with respective insurance limits.
A Commercial Auto policy could be amended with Drive Other Car Coverage. Household individuals and family members who are listed on the form will become insured under the auto policy, however only for the items where a premium is implied. Also, coverage will apply only for the time while the listed individual is traveling in an auto not owned by the insured nor by any of the listed individuals and family members.
In Part One we discussed Cindy, who became an injured passenger on the way home from shopping. If the policy was modified as Drive Other Car Coverage, Cindy would be covered for underinsured motorist coverage up to the limit in the endorsement.
Another issue that this option handles is Physical Damage Coverage for non-owned or hired vehicles. This coverage is usually extended to the scheduled individual and spouse, only if the spouse lives in the scheduled individuals home. Family members are not covered under this issue.
Drive Other Car Coverage expands to include private passenger vehicles that are under the control of the scheduled individual and the spouse. The vehicle may not be owned by the individual or any family member and may not be used by the individual or spouse in a business involving car repair, car sales or parking.
In the Part One situation involving Louise and Jake, the accident occurs during Louise’s test drive. With the Drive Other Car Coverage option, the company policy on her husband’s car becomes modified. The insurance will pay for the damaged done to Jake’s vehicle. After the car has been repaired, Louise will be able to buy it.
If your household is undergoing any vehicle situation that is similar to what has been discussed in this article, you may want to speak with an insurance professional to make sure you receive proper coverage.
If you have any questions about your existing policy, are inquiring information about a possible future policy or need further information, please call us at (631) 738-7300 or get a quick quote at www.vrpinsurance.com
You can also check us out on Facebook at www.facebook.com/vrpinsurance
and follow us on Twitter at www.twitter.com/VRPInsurance