How insurance covers insureds driving another's vehicle
Coverage Q&A: What happens if an accident occurs with an uninsured driver and an insured driving someone else's car?
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Editor’s Note: This week’s question looks at what could happen if an accident occurs with an uninsured driver and an insured driving someone else’s car.
Question: My client operates parking garages. One of the garages used by condo residents was damaged by flooding earlier this month, and it will take a few months to repair the garage. Luckily, no autos were damaged by the flooding.
My client rented a minivan from Enterprise to transport the residents back and forth from the garage to their condos.
Enterprise does not provide uninsured motorists coverage. My client’s auto policy insuring the hired auto exposure includes uninsured motorists coverage. However, it is symbol 7; therefore, it only applies to scheduled autos.
I am curious, how would this coverage apply if the auto is owned by a family member or friend or an employer’s auto.
— Pennsylvania Subscriber
Analysis: Auto insurance is required in every state, and most people are familiar with it. However, there are many nuances. Every policy has provisions for who can drive the vehicle other than the insured and how coverage is provided. Policies also outline what happens if there is an accident with an uninsured driver and how the policy responds in that situation. It can become really confusing when the two situations occur simultaneously — an accident occurs with an uninsured driver and an insured driving someone else’s car.
Answer: To learn the answer to this week’s coverage Q&A, please log into your FC&S Expert Coverage Interpretation account.
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