Company Car Insurance
Reader’s Question:
Do I need my own car insurance if I operate a company vehicle?
Jason
New York, NY
Any automobile that is on the road must be insured by it’s owner in accordance with the state laws. Your company is responsible for making sure that the company car you are driving is properly insured.
In the event of an accident, the insurance usually follows the car, so the car’s insurance is used as the primary insurance, and your insurance will follow to be used if the damages exceed the limits of the car’s insurance. So in most cases if you do not own a car, you are not required to have your own car insurance.
It is usually recommended that you carry a non-owners insurance policy to cover yourself when you operate other people’s cars. This will provide you additional insurance protection in case the car owner’s insurance has lapsed or if the limits on their policy are too low.
You may contact your company and/or it’s insurance carrier to find out the details of the insurance policy on the company car and how much coverage is provided for you when you operate it.
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