Does only the named insured have liability coverage extended by the standard ISO personal auto policy or would a named driver also have coverage?
A client asked if his son, who is a listed driver on the family personal auto policy, has coverage for a rental car. The car the son drives is being fixed at a dealership and the dealership is going to provide a temporary replacement car.
Q: Does only the named insured have liability coverage extended by the standard ISO PAP or would a named driver also have coverage?
Response 1: When it comes to coverage, the ISO PAP policy does not recognize a “named driver." Naming a driver on the policy is only a matter of rating, not coverage.
That being said, is the son a member of the household? If the son is living elsewhere, he is not considered an insured whether he is a driver on the policy or not. If he is a resident relative, then he becomes an insured and the policy then extends liability coverage for him whether he drives a vehicle on the policy or any other non-owned vehicle—including a temporary substitute.
Please be aware that non-owned liability coverage is excess to the liability coverage provided by the vehicle being driven, barring any exclusions.
Response 2: Is the son an insured? Whether the son is a named driver does not mean he is an insured. Does the son live with the father? Then he is an insured. If he doesn't, then he is not.
Response 3: The countrywide ISO PAP provides drive other car coverage for resident relatives. Being listed as a driver doesn't necessarily make the son a resident relative.
You need to check the specific policy because it can change from state to state. For instance, Missouri policies are typically amended to remove some coverage for resident relatives if they own their own vehicles.
Response 4: What does the policy language state? Does it state that the liability coverage applies to the “named insured" and any “resident relative" as defined in the policy for “any vehicle"? Or does it state something else? Is the son a resident? Who owns the vehicle? If the son owns the vehicle and lives in the residence, you should probably add him as a named insured.
Response 5: If the son is a resident of the household, under the basic ISO PAP he has coverage driving any auto, which would include a rented vehicle. If he is not a resident of the household, he only has coverage for driving an auto that fits the definition of covered auto. A covered auto is defined as vehicles listed on the declarations page, a newly acquired auto and a temporary substitute.
Response 6: A temporary substitute private passenger vehicle is covered just as the car that is being fixed is covered.
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