In today’s insurance world for Michigan, auto insurance is a big question mark looming in the distance. Lawmakers and insurance carriers are currently deciding how everything will fit in place with the new auto insurance laws coming into effect July 2020. The changes will influence both personal and commercial auto insurance, and no one has concrete answers on all of the details quite yet.
If you own a business that possesses autos, most likely you have a business auto insurance policy. No matter how many vehicles are on the business auto policy, if you or other employees use them for both work and personal driving, you may require additional coverage. Drive Other Car coverage exists as an endorsement that can be added to your business auto policy in order to best protect you, your business, and your family. Your business may need this coverage if you drive a vehicle for work, and in turn, drive it home, to the store, or for any other personal reason.
Drive Other Car coverage, also called DOC, provides coverage if an employee drives a company vehicle and does not have their own personal auto policy. DOC is specifically for named individual employees and officers of a company, so if it is a desired coverage, the business owner must be specific about who needs to be named on the endorsement. It is likewise important to name the resident spouse of an officer if they also drive the vehicle.
Some people have company vehicles furnished to them for their jobs and do not own a personal vehicle. Sounds like a great way to save money, right? If you do this, especially if you cancel your personal auto policy, it is imperative that your business knows about your personal auto policy status and has DOC on their auto policy in order for you to be covered and best protected should a loss occur.
As with any insurance, it is important to evaluate it at least on a yearly basis in order to make changes when necessary. To learn more about your business insurance needs, contact your agent today.
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