What is Extended Non-Owned Coverage and Why Should You Have It?

Extended non-owned coverage on a personal auto policy provides additional protection for individuals when they drive vehicles they don’t own, such as a company car or a borrowed vehicle. The purpose of this coverage is to extend liability and medical payments (and sometimes physical damage) to the policyholder when they are driving a vehicle not listed on their personal auto policy.

Here are some key points about extended non-owned coverage:

1. Liability Protection: It extends the policyholder’s liability coverage to the non-owned vehicle, meaning if they cause an accident while driving the borrowed or rented vehicle, their personal auto policy will cover damages or injuries for which they are legally responsible.
2. Medical Payments: It may also cover medical expenses for the policyholder and passengers in the non-owned vehicle if they are injured in an accident.
3. Physical Damage: Some policies may offer coverage for physical damage to the non-owned vehicle, though this is less common and might require additional endorsements.
4. Business Use: This coverage is especially important for people who use a company vehicle for business purposes but want to ensure they have adequate personal liability coverage in addition to what the company’s insurance might provide.
5. Rental Vehicles: It can also be useful when renting vehicles, providing a layer of protection beyond the rental company’s insurance.

In summary, extended non-owned coverage is designed to provide broader protection and peace of mind when driving vehicles that aren’t owned by the policyholder, ensuring they are covered in various driving situations.

To learn more about the insurance products available, reach out to Chelsea Heatherington at Kingsgate Insurance.

Chelsea Heatherington, Farm & Ag Specialist

Call or Text: 515-302-8400

Email: chelsea@kingsgateins.com