How to Use an Endorsement for a Non-Owned Car

Even minor accidents can prove costly for uninsured drivers.

Protecting a business or family's assets by owning comprehensive car insurance to cover all possibilities is an important risk management tool to minimize the risk for financial loss. Although some owner policies cover non-owner drivers in certain situations, it is best to plan for the exceptions to the rule to be safe. Non-owner auto coverage is generally added to the primary policy as an endorsement. Due to the high costs associated with car accidents, it is critical to understand the extent of your risk as a driver. When you factor in the possibility for physical injuries, the costs can soar.

Instructions

1. Review all car insurance policies or consult with the owners of cars you drive to determine whether you are covered as a non-owner and to what extent you are covered. Find the name of a trusted insurance agent to discuss the information you find to decide how to proceed.

2. Consult an insurance agent for advice about driving a company vehicle if appropriate. Commercial insurance is designed to cover any accident that occurs while the vehicle is being used for company business.To guarantee coverage in all circumstances, it is important to obtain non-owner insurance for any driver who might use the commercial vehicle for personal purposes, or be perceived as using the vehicle for personal use.

3. Determine the probability of renting or leasing a car. When it is likely that a driver will rent a car more than ten days per year, the insurance costs for getting non-owner coverage is often cheaper than purchasing insurance from the car rental company. Certain credit cards also offer rental car insurance coverage.

4. Business owners should consult an insurance expert about a non-owner insurance endorsement to protect company interests. In the case of an accident, the commercial insurance company may not be liable to pay a claim if it can be determined that the vehicle was being driven for personal use at the time of the accident.

5. Examine the likelihood that you will drive another person's car. Even though many owners' policies cover drivers other than the owner, the rules are strict about how often the car is driven by the same guest driver. Rather than take the risk that coverage could be denied in the case of an accident, insurance professionals advise drivers who drive other people's cars to consult with an insurance agent and to add the non-owner endorsement as a precaution to cover all possible circumstances.

References

• "DMV.org"; Non Owner Liability Insurance
• "MSNBC.com"; Should you pay for rent-a-car insurance?; February 2008