It can be difficult to manage all the different insurance policies and assets you have between your business and personal life. From business liability insurance to homeowners insurance, life insurance for the benefit of your family and life insurance as part of a buy-sell agreement, and car insurance for your personal and business vehicles the perfect balance of personal and business coverage can be hard to maintain. While many of these complicated insurance arrangements cannot be simplified, the one involving your business and personal car insurance can be.
When you buy a business auto policy to cover your company furnished vehicle you can choose the Drive-Other-Car endorsement to cover your driving activities with a personal vehicle rather than buying an additional policy for personal usage.
What the Drive-Other-Car Endorsement Covers
The coverage provided under this endorsement is similar to that of traditional, personal auto insurance but it requires the payment of only one bill—your business auto policy. This makes paperwork easier for you and reduces the risk that one of your policies could lapse from nonpayment of premium. The Drive-Other-Car endorsement can also be used to provide coverage to employees who are given a company car to take home after work.
The Drive-Other-Car endorsement can provide bodily injury and property damage liability coverage as well as uninsured or underinsured motorist coverage. Whatever limits and deductibles you choose for the business auto insurance policy are extended to the endorsement.
Important Points to Remember
The Drive-Other-Car endorsement does not just cover you when you drive personal vehicles that you own, it can also cover claims resulting from accidents that occur while you (or a covered employee) are driving a rental vehicle or friend’s automobile. That helps to make this extremely flexible endorsement very comprehensive.
This endorsement can cover other drivers in the employee or business owner’s household—but you need to read the details of your policy before you assume that this is the case. If your policy does cover household members then they will be protected whether driving a rental car, borrowed car or their own personal vehicle. However, this does not mean that they are covered under the business portion of your policy if they use your company vehicle.
In order to qualify for this endorsement, the business vehicle you use and insure must be owned by your business and not by you, a spouse or family member. When looking for ways to buy effective insurance policies that protect you against financial risks and simplify your life, additional endorsements like the Drive-Other-Car endorsement are important and valuable tools to consider.
For more information about South Carolina commercial auto insurance, give Triest Agency a call at (843) 556-6232.