Learned New Insurance detail

[Rancher Will]

This is a subject that I have never noticed discussed before. So, I thought I would mention it.

One of my employees ordered and purchased a new 5th Wheel RV; The dealer offered a $2,500 discount if the employee would pick up the RV at the manufacturer in Elkhart, Indiana. Since I regularly travel to the Midwest on business, and I have a 5th Wheel Hitch in my truck that we use for our own RV, I offered to pick up the RV for my employee on my next trip East.

When I checked with the Insurance coverage, with my current insurance (Good Sam-Natl Gen Ins) I learned that there is no insurance offered for coverage when I am pulling a non-owned by me RV. The Insurance agent informed me that auto insurance protection only is valid when both the truck and RV trailer are both owned by the insured.

Apparently anyone pulling a non-owned trailer, although having full insurance, would not be properly insured without a Commercial, expensive policy, just for that one trip. Has anyone else had experience along this line?

 

[oldme]

No experience, however NOT surprised.

Insurance companies often get very specific of when and what they will cover.
Your policy is for your items as stated in the policy.

Your good deed for a friend, would look like a commercial activity to the insurance company.

 

[rebelsun]

It's a good thing you checked with your insurance company BEFORE transporting your employees trailer.  A lot of people, myself included, probably wouldn't have thought to check.

 

[Gary RV_Wizard]

That doesn't surprise me at all. Collision and comprehensive insurance is written for a specific vehicle, not for "anything you tow". Or anything you drive, either. In other words, it is normally the vehicle that is insured, not the driver.

On the other hand, the new owner of that trailer should have purchased insurance on effective at time of delivery. Suppose it caught fire 3 minutes after the paperwork is signed? He would have a total loss that is uninsured! Your employee needs to get it insured effective on the date of delivery!

 

[grashley]

What happens if you use your employees' truck for this trip?  Now both are in the same name and insured.  I believe the truck and 5er are insured, with anybody driving with the insured's permission.

 

[bucks2]

That doesn't surprise me at all. Collision and comprehensive insurance is written for a specific vehicle, not for "anything you tow". Or anything you drive, either. In other words, it is normally the vehicle that is insured, not the driver.

On the other hand, the new owner of that trailer should have purchased insurance on effective at time of delivery. Suppose it caught fire 3 minutes after the paperwork is signed? He would have a total loss that is uninsured! Your employee needs to get it insured effective on the date of delivery!

That's directly opposite of what my agent tells me. He states that I am an insured driver and any car that I rent or borrow (legally) is covered just as my own. Likewise if I loan my car to someone for short term use it is covered as if I was driving it.
He also states that any vehicle I buy is automatically covered for 15 days. That's for State Farm policies that I have.

Probably a good idea to check though, some companies may differ.

ken

 

[Jeff]

Even with the owner being fully insured unless his Insurance company was willing to add you as an additional named insured you could get subrogated against if the trailer was damaged because of your driving.

 

[Gary RV_Wizard]

That's directly opposite of what my agent tells me. He states that I am an insured driver and any car that I rent or borrow (legally) is covered just as my own. Likewise if I loan my car to someone for short term use it is covered as if I was driving it.

I think you are confusing liability with collision & comp. Most liability coverage for non-commercial drivers includes "drive other car" privileges.  If you harm someone, or some thing while driving another vehicle, your insurance still covers that liability.  But if you wreck the borrowed car, your own car's collision probably does NOT cover it, and if a tree falls on it while you were using it, it your comprehensive for sure won't cover that other vehicle.  YOU, however, may be held personally liable for any damage incurred while it was in your care, so it might get covered that way.

If you loan your car or RV, of course it is covered. As I stated, the vehicle is insured for both liability and whatever else you insured it for, so the driver isn't a factor.  It's covered even if stolen rather than loaned.

 

[bucks2]

I think you are confusing liability with collision & comp. Most liability coverage for non-commercial drivers includes "drive other car" privileges.  If you harm someone, or some thing while driving another vehicle, your insurance still covers that liability.  But if you wreck the borrowed car, your own car's collision probably does NOT cover it, and if a tree falls on it while you were using it, it your comprehensive for sure won't cover that other vehicle.  YOU, however, may be held personally liable for any damage incurred while it was in your care, so it might get covered that way.

If you loan your car or RV, of course it is covered. As I stated, the vehicle is insured for both liability and whatever else you insured it for, so the driver isn't a factor.  It's covered even if stolen rather than loaned.

A rental car I rented in Hawaii was hit in the parking lot, ($1200 damage) the other driver failed to stay and take responsibility. My insurance covered the entire cost minus deductible. It does for sure cover the other vehicle. So, however you parse the coverage, it was paid, as the agent said it would be.

Ken

 

[Gary RV_Wizard]

No, it covers YOU because you are liable for the damages to the rental car. Says so right in your rental contract. Sorry to nitpick, but liability and collision are separate coverages. But I suppose it makes no difference, at least not in your case. Just be glad you weren't towing someone else's trailer.  :'(

 

[grashley]

Gary is spot on.  Most insurance coverage specifically includes rental cars.  This is about the only car that will be covered for comp or collision not listed on the policy. 

YOU are covered for liability only in any car you drive.  If you are driving the neighbor's car and cause an accident, the neighbor's insurance covers the accident.  If their insurance had insufficient LIABILITY to cover the loss, then your insurance would step in up to your policy limit.

One minor point of disagreement - If your car is stolen and involved in an accident (this actually happened to me), you nor your insurance are  liable for anything related to the accident.  I got a call from State Hwy Patrol about "my" involvement in a hit and run accident.  The license  number was reported.  I told him the car was stolen and where the report was made.  I never heard from him again.  Since the car was stolen, your insurance will cover your loss, i.e. repairs or total loss, less deductible.

Your car is covered per the policy regardless of who is driving.