Drive Other Car Coverage – An Endorsement Filling Coverage Gaps
Do you ever worry about how auto insurance works when you drive other cars? Especially in relation to business owners and executives who frequently switch between company cars and personal vehicles.
TL;DR
- Drive Other Car Coverage (DOC) covers certain individuals while driving cars not specified in their auto insurance policy.
- It can fill in gaps in auto coverage for executives and owners who use company cars for personal use.
- Don’t overlook this as a regular auto insurance coverage. It’s an essential part of risk management, especially for key personnel.
- Know the ins and outs of DOC coverage to minimize the potential for E&O claims.
What Is Drive Other Car Coverage in Insurance?
In simple terms, Drive Other Car Coverage extends your auto insurance coverage to other vehicles you drive which aren’t listed on the policy. It’s like adding extra security to your car keys.
Technically, Drive Other Car Coverage, known as DOC coverage or CA 99 10, modifies the “Who Is An Insured” section of a Business Auto, Garage, or Truckers policy. It’s commonly seen in commercial auto policies for business-owned or furnished vehicles used by executives for personal use.
Key Related Terms to Know
- Liability Insurance – Covers damages to other parties caused by your actions.
- Comprehensive Insurance – Covers damages to your vehicle from non-collision related incidents.
- Commercial Auto Insurance – Policy providing physical damage and liability coverage for business owned vehicles.
- Company Car – A vehicle provided by the employer for business and personal use.
- Executive Officer – Top management in a corporation.
Common Questions about Drive Other Car Coverage
What does Drive Other Car Coverage cover?
Drive Other Car Coverage basically extends liability protection and physical damage coverage from your commercial auto policy to another vehicle you drive, especially if it’s not listed on the policy. This may include both business and personal use.
Does my DOC coverage apply to all cars?
DOC coverage applies only to specific named individuals and is not generally extended to permissive users. It is not designed for situations where many employees have the free use of a company vehicle.
Is DOC Coverage the same as non-owned auto coverage?
No. Non-owned auto coverage applies when employees use their personal vehicles for business purposes. DOC Coverage generally applies when an executive uses a company vehicle for personal use.
Drive Other Car Coverage vs. Named Nonowner Coverage
The difference between DOC coverage and Named Nonowner Coverage isn’t always clear. Though both handle auto policy gaps, their use differs significantly.
Comparison Area | Drive Other Car Coverage | Named Nonowner Coverage
|
Primary use case | Covers named individuals driving company owned or furnished auto for personal use. | Covers liability for an individual driving a rented or borrowed vehicle. |
Coverage / concept type | An endorsement added to commercial auto policy. | A separate liability policy. |
Typical exclusions | Does not extend to employees outside named individuals or family members. | Does not provide physical damage coverage. |
Who is most affected by errors | Business owner, renter, executive officer liable for auto damages when driving company vehicle. | Individual who borrows or rents a car without any form of auto insurance. |
Common mistakes | Assuming personal auto policy automatically covers driving other cars. | Thinking this policy provides comprehensive coverage. |
Real Claim Examples Involving Drive Other Car Coverage
Scenario 1: A business owner used his company car to drop his child off at school. During the drive, an accident occurred damaging the company vehicle and another car. The DOC coverage helped cover the liability and physical damage.
Scenario 2: An executive officer borrowed a friend’s car for a day trip. A collision occurred, but fortunately, his DOC endorsement provided coverage for the damages.
Scenario 3: A CEO, with a DOC endorsement, rented a car while on vacation. When she accidentally backed into a pole, her DOC coverage helped to cover the damages.
Limitations and Common Mistakes
- DOC coverage doesn’t apply to all vehicles. It generally covers only named individuals.
- Personal use of a company vehicle without a DOC endorsement can lead to coverage gap and potential E&O exposure.
- Misunderstanding this as full auto insurance coverage. It’s an endorsement added to a commercial vehicle policy, not a standalone product.
- Forgetting that coverage applies only when the personal auto policy doesn’t provide liability coverage, subject to certain conditions.
How to Explain Drive Other Car Coverage to Clients
Personal Lines client: “Think of it as an extension to your auto insurance. It gives you coverage when you’re driving a company car for personal reasons.”
Small Business owner: “Remember how you told me you use the business van for your weekend errands? DOC coverage helps protect you during those personal trips.”
CFO or Risk Manager: “With your fleet of company cars and your executives using them, a DOC endorsement ensures you’re covered if they use those vehicles for personal reasons too.”