COMPANY CARS If you’re someone who regularly drives a company car, it’s important you understand exactly what their insurance covers. Some offer collision coverage, but some don’t. Most of the time, your employers will assume liability if you’re in an accident. This is called vicarious liability , and you
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A named non-owner policy will also protect you if you have an accident while driving a friend or relative’s car, serving as secondary insurance if the car owner’s limits don’t cover everything.
must be driving specifically for work purposes to be covered. If you’re using the car for non-work purposes, sometimes called frolic , and get into an accident, it’s possible your company’s insurance won’t legally have to cover you. The same holds true if you don’t follow the company’s guidelines, such as if you drive under the influence and cause an accident. Another thing not covered is if you’re in an accident with a co-worker as a passenger and the co-worker gets injured. What do you do tomake sure you’re covered?Well, if you own a personal car and have insurance on that, you’ll likely be covered in your company car, as well. I suggest getting an endorsement for an extendednon-owned coverage for named individuals added to your personal policy. Keep inmind that this will cover liability and medical costs, but NOT damage to the company vehicle. However, some insurers don’t offer this option. If that’s your situation, you need to look into a named non-owner policy . It covers much of the same things. This is a simple policy that
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