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How does my personal Arizona auto insurance policy work with a company car?

Posted on: December 2nd, 2009 by admin

 It is a great privilege to have a company car but with the great perk comes the questions how does my Arizona auto insurance policy work with the company car? For starters in addition to in most cases saving an average of about $400/month on car payments you also have the privilege of your employer paying for the insurance also on the vehicle. Your employer has the vehicle insured under their business auto policy. What it typically will cover for you is liability for injuries and property damages that you may cause. In addition you usually are covered when driving other company cars and when driving borrowed or rented vehicles when on company business.  Okay that covers the situations when you are covered what about the situations when you are not covered? Typically you will run in to two scenarios were you may not have coverage with your employers business auto policy. The first being when you borrow or rent vehicles for personal use, the second being when you injure a coworker riding with you in a company car. This is where your personal Arizona auto insurance policy will help. This is all based on the premise that you have another vehicle that is used for personal use and obviously insured. The personal policy you have will provide liability coverage for when you rent or borrow a car for personal use. To protect yourself from the risk of injuring coworkers while driving your company car look into adding an extended non-owned auto endorsement on your Arizona auto insurance policy.  The annual cost for this optional coverage is usually very modestly priced and can be obtained for less than $50 a year.

Remember that having a company car is a great perk but you still have to look at how your are covered insurance wise. It is always good to speak with your employer and find out the details of the insurance coverage and look at your personal policy just to make sure there are no gaps in your coverage.

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