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Summary: The personal auto policy (PAP) of Insurance Services Office (ISO) typically provides adequate coverage for the use of nonowned autos. The liability section clearly states that the policy covers “You [the named insured] or any “family member” for the ownership, maintenance or use of any auto or “trailer.” That is a very broad promise and, as mentioned, covers most nonownership situations.

Sometimes, though, an insured may need coverage for nonowned auto exposures that are excluded under the personal auto policy. For example: a salesperson that has a company car provided to him has no coverage for his personal use of that vehicle (the furnished or available for regular use vehicle). The business auto policy does not exclude coverage for personal use of a company car (that is a covered auto), but many persons prefer to rely on their own insurance. That salesperson may cover the liability and medical payments exposure of personal use of a company car—under his or her personal auto policy—by purchasing endorsement PP 03 06 09 18. This endorsement—extended non-owned coverage—vehicles furnished or available for regular use—expands the regular liability and medical payments coverages to insure this additional exposure. This coverage is always excess over other collectible insurance on a nonowned auto.

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