question
“I am supplied a car by my employer and am permitted to use it for both work and pleasure. My employer told me that I need to get my own insurance to cover me when I use the car off duty. How can I do that under my personal auto policy?”
problem
The Personal Auto Policy has an exclusion that states that there is no coverage for the use on a vehicle furnished or available for your regular use. When driving an employer-owned company vehicle there is no coverage under the personal auto policy. This is the same if your spouse or another family member uses the company vehicle. This is a little known gap in all personal auto coverage, but is very common.
The answer is to add an endorsement to the personal auto policy referred to as the Extended Non-Owned Coverage for Named Individuals to the personal auto policy. Each person in the family should be named in the endorsement if there is any chance they would drive the company vehicle.
This endorsement will fix the gap in coverage when an employee is furnished an auto for this regular use (or even has one available for his regular use out of a pool of vehicles). But note this is only for Liability coverage and there is not going to be any physical damage coverage for the vehicle.
The importance of an insurance professional
This is why it's so important to have a long-term relationship with an insurance professional who knows you and understands your situation.
