Am I insured when driving my employer-furnished vehicle?
My employer furnishes a car for me to drive. Does my personal auto policy provide any liability coverage if I'm in an accident in my work car?
The basic personal auto insurance policy does not cover you while driving a vehicle that your employer furnishes for your regular use. In order for coverage to extend from your personal auto policy, you need the Extended Non-owned Coverage - Vehicles Furnished or Available for Regular Use endorsement.
This endorsement provides several important car insurance coverages when you are furnished a vehicle by your employer. First, the endorsement eliminates the exclusion in your car insurance policy that restricts coverage from applying to the use of any vehicle, other than the named insured's covered auto, and that is available for the named individual's regular use (ie: your employer-provided car). This means if you have an accident in your work vehicle, your personal auto policy will provide liability coverage on an excess basis, which means over-and-above coverage that may exist with your employer's commercial auto policy.
Another big advantage of having the Extended Non-owned Coverage endorsement on your personal auto policy is the endorsement provides protection against fellow employee lawsuits. This means if you are driving in your work vehicle with another employee and are in an accident where you are at-fault, if the other employee sues you to recover damages, you have liability coverage.
Medical payments coverage is also extended by the endorsement to your employer-provided vehicle. So if you are injured in an accident in your work vehicle, your personal auto policy medical payments coverage would apply as excess coverage to you.
It's important to note that coverage only is provided for the individual listed in the endorsement. No coverage is extended to your spouse or family members unless this is specifically selected on the endorsement.
So if you are furnished a vehicle by your employer, make sure to ask you agent about the Extended Non-owned Coverage endorsement. There are several versions of the endorsement depending on which forms your car insurance company uses, so make sure your agent fully explains your options as it relates to your specific car insurance company.
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