Company Cars Create Coverage Complexities
Is one of the benefits or perks of your job a company car? Congratulations! Now the questions:
- If you were to cause injury or damage to another with that car, what protection do you have for any resulting claims or lawsuits?
- What protection do you have for your own injuries? What about passengers'?
- If your company allows you personal use of the vehicle, does that mean you can treat it the same as you would a car you owned? For example, does that permission include letting your spouse, other family members or best friends drive the car? What about injury to other drivers or their passengers?
All of these and other questions require a thorough comparison of the usage permitted by your company and the current coverage provided by your personal auto insurance. Since the company owns the car, there will be some coverage under its business auto policy, but that policy may well exclude several of the scenarios mentioned. In such cases, your personal auto policy provisions will be key to any claims coverage. And keep in mind proper coverage may require endorsements to either or both the business and personal policies.
And if you drive a company car exclusively and have felt no need for a personal auto policy, now is the time to reconsider. Certain potential coverage gaps require a personal auto policy, possibly with added endorsements, to provide you with proper overall auto insurance protection.
Now is the time for your personal insurance provider to review both your current business and personal auto insurance to properly coordinate your desired protection.
©2013 Selective Ins. Group, Inc. (Branchville, NJ). "Selective" insurers include Selective Ins. Co. of America, Selective Ins. Co. of New England, Selective Ins. Co. of N.Y., Selective Ins. Co. of South Carolina, Selective Ins. Co. of the Southeast, Selective Way Ins. Co., Selective Cas. Ins. Co, Selective Fire and Cas. Ins. Co and Selective Auto Ins. Co. of N.J. Insurers and products available vary by jurisdiction.