Ask PIA

Extended rental period

My client has two cars insured on a personal automobile policy. His son is away at college, so the two vehicles have been adequate for him and his wife. His son is coming home for the summer, and my client wants to rent a third car for two-and-a-half months. He would drive the rental car, and his son would drive one of their own vehicles. Will he have coverage for the rental car under the personal auto policy?

Charging for accident of unlicensed user

Our insured’s child, who is 18 and not licensed, took our insured’s car and had an accident. The insurer intends to surcharge for the accident. The child was not a listed driver in the household.

Bait-and-switch activities

I lost a client to a direct writer who offered them a lower rate on their auto policy then I could. However, shortly after the policy was bound, the client called me up complaining that the direct writer increased the premium. The direct writer did not run the motor vehicle report for the client until after the policy was bound. They discussed an accident that had not been disclosed by the client. Can the direct writer actually do this?

Uninsured motorist property damage coverage

Our insured was hit by an uninsured motorist. There were no injuries, but there was property damage to his truck. We assumed the damages would be covered by the Uninsured Motorist Property Damage coverage of his commercial auto policy, but the insurer denied the claim and referred the insured to the policy’s collision coverage, subject to a deductible. Is this right?

After-market parts

What are the rules governing the use of after-market parts in New Jersey?

Resident family member

My clients insure a vehicle, used by their son at college, on a personal auto policy. The parents are planning to leave the country for two years. They have made arrangements to have the policy billed at the grandparent’s address.

Is it alright to leave the parents as the named insureds on this policy?

Damage to vehicle from shifting load

My insured was driving his pickup when he was forced to stop quickly. Equipment in the bed of the truck shifted forward, damaging the cab. Under a business auto policy, would this damage be covered under comprehensive or collision coverage?

Joint ownership coverage endorsement

Could you clarify what the Joint Ownership Coverage (PP 03 34) endorsement to the Insurance Services Office Personal Auto Policy is designed to do?

Betterment clause

In an auto physical damage claim, the insurer wants to use nonoriginal equipment manufacturer parts and the claimant does not want them. So, the company states that if the client insists on the original-equipment manufacturer parts, it will invoke the policy’s “betterment” clause. Can they do this?

Coverage not terminated by plate surrender

Our insured’s vehicle was hit while parked. We reported the loss to the negligent party’s carrier to collect on a third-party basis. The company confirmed that coverage was in place.

Then, three weeks later, the company told us their insured had surrendered his plates the day before the accident. (He had borrowed somebody’s plates and put them on the vehicle to move it from one place to another.) It looks like the carrier may try to deny the claim based on the surrender of the plates. Would they be able to do this?

BAP Symbol 7—newly acquired auto coverage

Our insured has an business auto policy written with Symbol 7 for comprehensive coverage on the ISO Business Auto Coverage Form. If a comprehensive loss occurs to a newly acquired auto within 30 days after acquisition, but before notifying our agency or the insurer that the auto has been acquired, would this loss be covered?

Vehicle renters with no auto policy

I recently read about a Florida law (Section 627.7263), that allows a rental company to make a renter’s personal auto policy primary for liability coverage involving vehicles rented in Florida.

What about the renter who does not have a personal auto policy? Many people living in the New York metro area do not own cars. In addition, some individuals primarly drive employer-furnished vehicles and, therefore, do not maintain a personal auto policy.

Do such vehicle renters need a named non-owner policy (or drive-other-car coverage under a business auto policy) to obtain coverage when renting vehicles in Florida?

Falling object

As a car is driving down the highway behind a truck, something flies off the truck. The car can’t avoid the object and runs over it, causing a puncture in the gas tank. Is this comprehensive (falling object) or collision? Also, does this constitute a chargeable accident?

Lawful auto rate discrimination

How can auto insurance companies discriminate and charge different rates based on credit, age, gender, etc.? Is that really legal?

Travel trailers

I have two insureds who have pickup trucks insured under a business auto policy in their business name. They also use these trucks to pull their fifth-wheel travel trailers. The business auto insurance carrier has advised our agency that it cannot provide liability coverage for these travel trailers and the companies that insure the physical damage coverage for the travel trailers are unable to add liability to their policies. Any suggestions?

Rental for business use

My insured is renting a van for a business trip. Does he have liability and physical damage coverage under his personal auto policy?

Zipcars and employees

My client’s law firm directs its employees to use Zipcars when attending meetings. How is this covered on the commercial automobile policy?

Title with salvage brand

My client’s auto was totaled in an accident. The insurer is discounting the value of the auto because its title has been “salvage branded.” Is the insurer permitted to do this?

Non-owned auto coverage—employee’s auto

Is there an exclusion on a commercial auto policy for the business owner or employee who uses his or her own vehicle to travel between offices, or uses his or her vehicle for office errands, and then has an accident that causes a liability suit naming the business entity?

Transgender operators

How does a producer address transgender operators when placing auto insurance?

Physical damage coverage for valet parking

I saw Ask PIA 900241—Coverage for valet parking on your website, which discussed only liability coverage for a rented vehicle. What about physical damage coverage in that scenario? Unless you have a New York policy, I personally would not valet park a rental car when physical damage is involved. Coverage is too uncertain.

Low mileage discounts

How to insure self-driving vehicles