Drive Other Car Insurance, abbreviated as DOC insurance, is an endorsement policyholders can add to their commercial car insurance to cover employees who make use of company-owned vehicles. This add-on is a way to expand your car insurance coverage; you get to include non-owner vehicles that may be used by your employees.
This insurance offers coverage for the management of a corporation, or partnership. Or even the spouse of their spouse while driving a rented or borrowed vehicle. Drive other car insurance is best for companies whose employees use the company car, as well as the families of the business owner. Instead of every employee or every member of your family purchasing car insurance on your vehicle. Or the company vehicle, getting this endorsement is a good way around it.
Drive other car insurance coverage is a common endorsement on commercial car insurance policies offered by different car insurance companies. Just as its name says, this insurance allows other individuals who use your vehicle to get insurance coverage over unexpected events. However, not everyone can get covered under this insurance policy. Instead, only people whose names you have listed on your policy will be covered.
What is Drive Other Car Insurance Endorsement?
Drive other car insurance endorsement is a type of insurance policy add-on that allows business owners to expand their already existing commercial car insurance coverage. It allows them to add non-owned vehicles that may be rented or leased from time to time.
Adding drive-other car insurance to your business car insurance policy gives your management. And their spouse coverage over any risk or event that they may face while renting or borrowing your company vehicle. It also covers your employees when they use or test a vehicle that the company does not own.
Why Do Businesses Need to Drive Other Car Insurance?
A business that provides company cars to its employees for personal use can get driver car insurance coverage over their company vehicles through their business car insurance policy. This is to cover financial expenses in case of any accidents involving property damages, bodily injury, or any other risks.
This coverage would cover every vehicle the company owns. However, only those vehicles that are listed in your policy will be covered under your insurance policy. Also, specific employees don’t need to be mentioned on your policy to get insurance coverage. Instead, they will have to get permission from the company to use the company’s vehicle.
How Does it Work?
A drive-other car insurance add-on states the names of employees who are covered under the insurance policy. This includes the spouses of employees but not every member of their family. This insurance coverage would include the same liability coverage as the employer’s commercial car insurance.
DOC liability coverage may include medical payments coverage, physical damage coverage, and underinsured or uninsured driver coverage. However, the names of employees who are covered under the business DOC insurance are compulsory to be listed on the insurance policy.
Who Should Get What Is Drive Other Car Insurance?
Drive other car coverage is mainly designed for a company’s management and their spouses. It offers protection for events that may occur when they borrow, rent or test drive a car that is not owned by the company. Companies that do not have this insurance coverage may cause their employees. Or the company to make payments for any expenses due to unexpected events like accidents.
Although some states require companies and businesses to have car liability insurance. Employees may not need to purchase car insurance if the vehicle is given to them by their employer. However, businesses and companies without employees do not need to purchase driver’s insurance coverage.
Exceptions and Restrictions
This insurance is only available to corporations and partnerships. It also only applies to employees of a corporation or partnership and their spouses. To be eligible for this coverage, you need to have a vehicle owned by the company that is listed in their commercial car insurance policy. If you already have one, you will be covered under the company’s Drive Other Car insurance coverage on the company’s commercial car insurance policy.
Drive Other Car Insurance Limits and Deductibles
With a drive other car insurance coverage, the limits you have set for your liability insurance, medical payments, physical damage insurance, and underinsured driver insurance will be applied to your DOC insurance.
