Definition:Drive other car coverage
🚗 Drive other car coverage is an endorsement added to a commercial auto policy that extends liability and sometimes physical damage protection to a named individual — typically a business owner, partner, or executive — when that person drives a vehicle not owned by or listed on the company's policy. Without this endorsement, a gap can arise: the individual may have no personal auto policy because they exclusively use a company car, yet the commercial policy covers only scheduled or hired vehicles, leaving the person uninsured when borrowing a friend's car or renting a vehicle for personal use.
🔧 The endorsement works by designating one or more individuals on the commercial auto policy and specifying the coverages that follow them into non-owned, non-company vehicles. Common elements include bodily injury and property damage liability, medical payments, uninsured/underinsured motorist protection, and sometimes comprehensive and collision coverage for the borrowed or rented vehicle itself. Underwriters evaluate the driving records of the named individuals, the scope of coverages requested, and the limits to be provided before attaching the endorsement. It is important to note that drive other car coverage generally applies only to vehicles not owned by the named individual — if they personally own a car, a separate personal auto policy is typically required.
💡 This endorsement fills what can be a surprisingly consequential coverage gap, particularly for small-business owners who have given up personal vehicles in favor of a company-provided car. A serious accident while driving a borrowed vehicle without proper coverage could expose both the individual and the business to significant out-of-pocket losses and litigation. Agents and brokers who serve commercial accounts should proactively review whether key personnel rely exclusively on company vehicles and recommend the endorsement where warranted. It is a relatively low-cost addition that prevents a potentially high-severity E&O scenario for the producer and a devastating uninsured loss for the client.
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