Extended non-owned coverage is an add-on to a driver’s personal car insurance policy that extends liability and medical payments insurance to a company car. Since many personal car insurance policies exclude the use of employer-provided vehicles, this extension can help a driver avoid gaps in coverage. Having extended non-owned coverage also is important because a company car’s insurance policy may not apply when you drive the car for personal use. Extended non-owned coverage generally does not cover damage to the car itself, however.
On the other hand, drivers who need coverage for personal use of a company-owned vehicle but do not have a personal insurance policy should purchase a non-owner insurance policy. Non-owner insurance is designed for drivers who frequently use cars they do not own, so it will cover you when you use your company-owned car for non-business purposes. However, you cannot purchase non-owner coverage if you or someone in your household owns a car.
If you choose to purchase extended non-owned coverage, it will only add about $50 to your annual premium. Any family members who might drive the car should also be named on the endorsement. But if you need to get an entirely separate non-owner insurance policy, you should expect to pay between $200 and $500 annually.
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