Individuals whose only vehicle is a company-provided car or truck may mistakenly believe that the company's insurance gives them adequate protection. This can be especially true of company principals/executives.

While the company may maintain adequate insurance and limits, there may also be formal restrictions on the use of company vehicles by other than the assigned employee. Such restrictions generally void insurance for anyone not authorized to drive the vehicle.

In addition, the use by an employee, principal or executive of any other (non-owned or rented) vehicle solely for personal use would not generally be insured by the business policy.  With a willing employer, insurance (including one's spouse) by endorsement is usually available for this exposure, for additional premium.

For those employees who also own and insure a personally-owned vehicle in addition to their company car, this "Drive-other-Car" insurance is usually included in the personal auto insurance policy and no additional coverage would be needed. (Ask your personal insurance agent.)

 

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