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Auto Insurance Claims/Auto coverage liability and physical damage

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Expert: - 1/9/2010


Question
If my daughter lets her boyfriend borrow her car to use as a work vehicle (drives from store to store as a merchandiser for Coke) will there be coverage if he is in an accident? I know it is not covered under the commercial auto under non-owned vehicles as this covers employee owned vehicles only. So is there coverage under her personal auto if he is borrowing it to replace his (liability only coverage) even if he uses it for business use? We live in MI.
Thank you.  

Answer
Hi Linda,

No. The only way for him to be covered is if he is added to the policy as a driver and explaines to the insurance company what he is using the car for. THERE WILL BE an extra charge of at least 25% for business use of a personal auto, if they will cover the situation at all.

I hope this helps
Richard Hixenbaugh

Auto Insurance Claims

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Richard Hixenbaugh

Expertise

Auto insurance claims procedure, auto coverage, liability issues, auto damage questions, how to deal with the insurance company, loss of use and diminished value.

Experience

I have been involved in the insurance industry for over 25 years. I have experience in underwriting, sales, claims adjusting, auto damage estimating, auto value appraising and diminished value appraising. I have testified as an expert witness over 35 times.

Organizations
Society of Certified Auto Appraisers

Education/Credentials
Completed all required courses for the Florida Property-Casualty agents license and the Florida claims adjusters license. I have attended various courses on auto damage estmating, vehicle appraising and am ASE certified in collision damage analysis.

Past/Present Clients
My company has done work for consumers nationwide.

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