Details on a prospect’s executive auto use can enable an agent to point out a gap, and solve the problem in one conversation. Better protection and better pricing is a combination that is hard to beat.

Are executives and salespeople of your prospect covered when they are not driving for the business? One might imagine the answer, “No! Of course not. We are insuring the business.” But owners, executives, salespeople and others who are provided with a company car perk, use that car for personal use. This could mean such a driver does not have a Personal Auto Policy (PAP).

For example, salesperson Mary is using a rented car to drive to another city on vacation, runs through a stop sign and hits another car. Mary has no PAP. Because this was personal use of the vehicle, she has no liability coverage. Mary, and your prospect, assumed she had the coverage.

ISO provides form CA 9910 – Drive Other Car (DOC) Coverage to cover this exposure, and it solves a problem for your prospect. The form makes available Liability, Medical Payments, Uninsured Motorist, and Physical Damage, specifically listing each individual to receive the coverage. If the policy provides liability coverage for hired and borrowed autos, these drivers have it also. Because drivers are scheduled, changes must be reported to the insurer.

One limitation is that coverage is for “private passenger type auto.” This term is not defined, but it can be assumed that sedans, light trucks, and SUVs qualify. It is likely that U-Hauls, heavy trucks, and RVs do not qualify. Talk to your underwriter if such a need arises.

This coverage is quite affordable, often a few hundred dollars. However, a carrier may not be willing to offer the coverage, or may limit to only certain drivers. What to do when the underwriter is unwilling to schedule the owner’s 16-year old son? Drivers without a PAP can purchase a Named Non-Owner Personal Auto Policy, which provides Liability, Medical Payments, and Uninsured Motorist. It does not include Physical Damage.