When the child enters the university, he usually moves to the university campus and lives with several roommates; each of them has his own car. Very often friends borrow the vehicle from each other. Usually the students are insured by parent’s auto insurance policy, but does it policy cover the cases when the student hit a pedestrians or becomes the participant of the accident? Or the same question emerges when the employee uses the car which belongs to the company. The person usually has his own auto insurance policy, but does this policy cover the car, supplied by the employer?
The people must be very attentive and careful with these conditions of insurance policy. Almost each insurance agreement includes such terms as: the insurer does not cover the cases when the client uses “another” vehicle, except his own car, furnished vehicle or the car which is available for regular use of the client. These terms are very dangerous, because it is quite hard to determinate what cases come within the listed conditions. In the case of company’s car, this car is furnished for regular use of the employee. In the case of student’s cars, these vehicles are also available for her/his regular use. What here new questions emerge: what happens in the case of accident or if the person injures or kills someone?
There are some methods how to plug the gap in the insurance rules and provide the protection of the client by insurance company in the cases if the car is available for regular use of the client or is furnished by the company. These methods refer to the endorsement, which is added to the personal vehicle policy and is called “Extended Non – owned Coverage for Named Individuals”. This document will provide the insurance coverage in the future. This document can be also added if the client uses family cars of vehicle of girlfriend/ boyfriend. Sometimes this exclusion can be included in the standard auto insurance policy, but in this case the policy is more expensive.