Does business use of a rental vehicle jeopardize coverage under the drivers personal automobile policy?
It is always important to determine whether the operator of a rental vehicle was in the course and scope of employment when the accident occurred. For one thing, other sources of insurance coverage may be discovered. (See Section 8.) Of equal importance, however, is that most personal auto policies exclude coverage for non-owned vehicles “while used in the business or occupation” of an insured. Typically, this exclusion does not apply to the named insured or resident spouse for the operation of a private passenger auto or trailer. Thus, the exclusion will eliminate coverage for a resident relative driving a rental vehicle in the course and scope of employment, and for all insureds while driving a rented commercial-type vehicle in the course and scope of employment.
Related Questions
- What should I do if I am renting a vehicle for University business and the rental agency asks for proof of coverage because I turned down their offer of Physical Damage insurance (CDW or PDW)?
- If I go on vacation and rent a vehicle, will my New Mexico auto policy provide coverage while I am driving the rental vehicle or must I purchases coverage from the rental company?
- I am using a personal vehicle for University business. Am I covered under the Universitys automobile liability policy?
