Summary: The personal auto policy (PAP) of Insurance Services Office (ISO) typically provides adequate coverage for the use of nonowned autos. The liability section clearly states that the policy covers “You [the named insured] or any “family member” for the ownership, maintenance or use of any auto or “trailer.” That is a very broad promise and, as mentioned, covers most nonownership situations.

Sometimes, though, an insured may need coverage for nonowned auto exposures that are excluded under the PAP. For example: a salesperson that has a company car provided to him or her has no PAP coverage for his personal use of that vehicle. That salesperson may cover the liability and medical payments exposure of personal use of a company car—under his or her PAP—by purchasing endorsement, PP 03 06. The Extended Nonowner Endorsement expands the regular liability and medical payments coverages to insure this additional exposure. This coverage is always excess over other collectible insurance on a nonowned auto. A discussion of court decisions regarding “regular use” concludes this article. The cases cited have been chosen to show various interpretations. Although some decisions may appear dated, none have been overturned.