BEWARE OF THE REGULAR USE EXCLUSION

Sometimes we write scholarly tomes on topics in this space, and sometimes we just have quick thoughts. This is a quick thought about your auto insurance policy- beware of the regular use exclusion.

WHAT IS THE REGULAR USE EXCLUSION?

Your auto policy has many useful coverages that can help you in a number of situations- liability for your own mistakes, PIP/medical coverage, underinsured motorist coverage, comprehensive, and the like. You might mistakenly assume that any vehicle you drive or ride in allows you to take those coverages with you. But this is usually not the case.

In the vehicles listed as insured on the policy, there’s usually no problem with coverage. While each policy is a bit different and would require careful scrutiny to be sure, generally speaking, your coverage travels with you to vehicles you may be driving temporarily, which belong to someone else (friends, employers, a newly purchased car, short term rental car, etc.).

WHAT IS THE PROBLEM WITH DRIVING SOMEONE ELSE’S VEHICLE?

The problems begin when you step into other vehicles that are arguably “available for your regular use” because your policy most likely excludes coverage when you are driving or riding in such a vehicle. Examples might include vehicles you own that are not listed on your policy, a relative’s car you have unfettered access to, or a work vehicle you drive regularly for your job.

You may well be covered in those vehicles by the policies of the vehicle owners, but their coverage may not be sufficient to take care of you if something unfortunate happens. If you do have access to a vehicle not listed on your policy, it’s probably a good idea to check with your insurance agent to figure out what can be done to make sure you have adequate coverage when using it.