Driving a Company Car for Personal Use…Am I Protected?

No, you are not automatically protected if you have a company car!

Consider these questions if you drive or your spouse drives a company car:

  • Do you have regular access to your company vehicle for personal use?
  • Does your spouse ever drive your company vehicle?
  • Do you know what your company’s commercial auto limits are?
  • Do you know if that policy has lapsed due to unpaid premiums?

If you answered yes to either of the first two questions and have no idea about the last two questions, then you need to read further.

Coverage Gap between Commercial & Personal Auto Policies

You could have a gap in your auto insurance coverage if you are involved in an accident in your company car while on personal time.  The commercial auto policy may not cover the claim because you were running a personal errand.  Or in the case of your spouse driving the car, the driver was an unreported, uncovered driver on the commercial policy and the claim could be denied.  On the flip side, your personal auto policy does not automatically extend liability coverage to non-owned autos furnished or available for your regular use (i.e. that company car).

How to Fill the Gap

There is a quick, easy, and CHEAP solution to fill this auto insurance gap.  An extended non-owned coverage endorsement should be added to your personal auto policy.  This endorsement extends your personal auto liability coverage to vehicles that are furnished or regularly available for your personal use.  And, this endorsement only runs about $25-$35 per year per driver.  Also if the coverage is added and you have a personal umbrella, the umbrella would extend over this coverage should the worst happen and you need to use it.

Don’t leave it up to your employer to take care of your personal auto liability needs.  Regardless of what state you live in – North Carolina, South Carolina, Alaska – you may find yourself in the insurance gap discussed above.  Check with your local independent insurance agent about adding this valuable coverage to your personal auto policy.