Personal Auto Exposure and Insurance Checklist
The Personal AutoExposure and Insurance Coverage Checklist is a guideline for reviewing a personal lines client’s auto exposures and identify insurance coverage forms and endorsements that provide solutions to those exposures.
Insurance companies that provide personal auto coverage have their own eligibility requirements, applications and coverage forms. This survey does not replace the necessity to complete an application, but rather is designed to gather information and quantify the identified exposures.
This exposure and insurance checklist includes the following:
- Identify covered parties and those that can be covered by endorsement.
- Identify types of autos covered and available coverage solutions.
- Review the basic coverages found in the personal auto policy.
- Review available endorsements for specific situations and exposures.
Named Insured: / Date Completed:
Insureds and Interested Parties
Many of your clients will have “typical” situations that can be handled easily with the policyholders being named on the Declarations page. Those policyholders are the vehicle operators. For other clients, the policyholders have family members that reside with them and are also vehicle operators. Others may have additional parties, such as family trusts, lessors and lenders that need to be insureds. Even though these parties are not operators of the vehicles, they have legal liability or physical damage exposures that need to be addressed in the policy.
Automatic Insureds / Y or N / Comments / SuggestionsPolicyholder (Named Insured) / Include spouse as named insured. Even though the policy contains automatic coverage, it is restricted to resident spouse.
Family member
/ Requires the family member to be a resident of the named insured’s household. Ask your client about status – never assume that a family away at college, in the military or is away from the family residence for significant time will still be treated as a resident. If any doubt, write a separate policy for that member.
Permissive driver / Is this an occasional or ongoing exposure? If ongoing, obtain name, license number and submit to company underwriter.
Insured’s Employer / Employers sometimes want to be named as Additional Insured on the Personal Auto policy of their employees. Standard policies include coverage automatically for any person or organization that has legal liability for actions of another insured person. Because an employer can be held vicariously liable for actions of their employees, the policy provides coverage automatically and no endorsement is required.
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Interested Parties / Comments / Suggestions / Offered(Y or N) / Accepted
(Y or N)
Additional Owner / A vehicle may be owned jointly between the Named Insured and another party that is not a covered insured. Add the Joint Owner endorsement (PP 03 34).
Living Trust (Irrevocable or Revocable) / A trust is a separate legal entity and can be named in a lawsuit. Sometimes the “owner” will title the vehicle in the name of the trust or their will contains a “pour-over” provision that places the vehicle into the trust upon the death of the trustee. In any case, the trust entity must be protected by the liability policy and in the event legal title is held in the name of the trust, the trust must be included as an insured. Check with your insurance company for appropriate endorsement. Note that the ISO endorsement (PP 13 03) does not provide proper coverage for the trust. Cross reference to the Umbrella / Excess Liability policy and name the trust on that policy as well as the Homeowner’s policy.
Lessor / If any of the insured vehicles are leased, the leasing company has both a liability and physical damage exposure. Most leases require at liability limits of at least $100,000 per person / $300,000 per accident or $300,000 CSL. Cross-check limits of liability for adequacy. Add as Additional Insured – Lessor (PP 03 19) to the Personal Auto policy. Also cross-check to the Loan/Lease endorsement (PP 03 35) for physical damage exposure. If the insured has purchased an Umbrella / Excess Liability policy, verify whether the lease requires coverage on this policy as well. Do not add automatically.
Loss Payee / A bank has a financial insurable interest in a vehicle being used as collateral for a loan (whether purchase or lease). Identify the specific vehicle on the loan and add the lender as a Loss Payee to the policy. (PP 03 05).
No Owned Vehicle / An insured that drives a corporate vehicle may have no coverage for a vehicle rented while on vacation or borrowed from another party. Provide a non-owner liability policy(PP 03 22).
Ineligible Parties / Comments / Suggestions / Offered
(Y or N) / Accepted
(Y or N)
Operator – bad driving record / Ineligible according to insurance company underwriting guidelines. Exclude from policy (PP 13 98), manuscript or state-specific endorsement) and provide a separate policy.
Federal Employer / Most insurance companies will specifically exclude an employer that is a federal entity (PP 03 01).
Vehicles – Type and Use / Comments / Suggestions / Offered
(Y or N) / Accepted
(Y or N)
Owned or Leased Private Passenger Vehicle / Eligible for Personal Auto Policy. Obtain year, make, model, serial number, original cost new or purchase price, lessor and lender information.
Newly Acquired Private Passenger Vehicle / Coverage automatically applies if newly acquired by a Named Insured. No coverage applies if acquired by a family member. The policy limits the length of time for automatic liability and physical damage coverage. This differs depending on the policy form edition date and by insurance company.
Non-owned vehicle / For a vehicle that the insured does not own, such as a borrowed vehicle, coverage differs depending on the reason it is being used. If used as a temporary substitute for a covered auto, liability coverage is provided on a primary basis; physical damage will apply on an excess basis and with the broadest coverage applicable to a schedule auto.
Auto available for regular use / This is often a vehicle provided by an employer and there is no coverage under any section of the policy. Add Extended Non-Owned Coverage (PP 03 06) to overcome this exclusion for liability and medical payments on a scheduled vehicle basis.
Vehicles – Type and Use / Comments / Suggestions / Offered
(Y or N) / Accepted
(Y or N)
Auto available for use as a taxi or other public livery conveyance / An insured may be provided a vehicle for rent or lease from a taxi cab or limousine company but the company does not provide liability or physical damage coverage. Add Extended Non-Owned Coverage – Vehicle Furnished or Available for Use as a Public or Livery Conveyance (PP 13 05) to provide coverage for liability and medical payments. This endorsement will NOT include coverage for physical damage. Your company underwriter may forbid the use of this endorsement due to the increased business risk. If so, offer a Business Auto policy.
Snowmobile / The policy does not cover vehicles with few than four wheels. Therefore, a snowmobile is not granted coverage. The homeowner’s policy also does not cover this type of exposure. Options: Add Snowmobile endorsement (PP 13 44)or provide a specialty policy.
Motor home, motorcycle, ATV, dune buggy or golf cart. / The policy does not cover these types of vehicles automatically and must be endorsed (PP 03 23). If your underwriter is unwilling to do this, provide a specialty policy.
Motor home owned by a named insured but rented to others / The underwriter may exclude this type of exposure by using Miscellaneous Vehicles Endorsement (Motor Homes) (PP 03 28). Provide a specialty policy to cover this type of situation.
Classic / Antique vehicle / Provide a specialty policy. Look for an “agreed value” type of valuation clause. This allows for one of two methods of loss determination: (1) Cost to repair (2) Limit of insurance. Some policies use a “stated value” which allows for a third consideration – actual cash value. This is inappropriate and should be avoided.
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Vehicles – Type and Use / Comments / Suggestions / Offered(Y or N) / Accepted
(Y or N)
Rental vehicle / Liability coverage applies when rented in a coverage territory. If the insured has physical damage on any covered auto, that coverage will extend to the rented auto. However, the rental car company’s contract may hold the insured responsible for their resulting loss of use should the car sustain damage while the insured is renting the auto. The loss damage waiver offered by the US rental car companies is not insurance, but rather a waiver of responsibility as long as the contract provisions are followed. The standard policy provides only $20.00 per day for this exposure.
Vehicle breakdown / If the insured’s covered auto sustains physical damage, mechanical or electrical breakdown while on a trip, additional costs may be incurred. An endorsement (PP 13 02)can cover up to $600.00 to reimburse the insured for specific types of expenses to resume their travel. Towing and labor coverage can be provided (PP 03 03)for reimbursement of specific expenses.
Physical Damage / Comments / Suggestions / Offered
(Y or N) / Accepted
(Y or N)
Loan / Lease exceeds value of vehicle / The insured may have a loan that currently exceeds the actual cash value of the vehicle. Add coverage with endorsement PP 03 35 to cover this discrepancy.
Rental vehicle following loss / The insured may have need of a rental car following loss to a covered auto. Provide coverage(PP 03 02)at a specified amount per day / per loss.
Trailer, camper body / The policy may be endorsed (PP 03 07)to cover additional value.
Physical Damage / Comments / Suggestions / Offered
(Y or N) / Accepted
(Y or N)
Electronic equipment / The insured may have electronic equipment to reproduce, receive or transmit audio, video or data not installed in factory designed locations. The endorsement Excess Electronic Equipment (PP 03 13) covers up to $1,000 maximum for these types of equipment and covers up to $200 for tapes, records, discs or other media.
Custom equipment / The insured may have customized equipment in a covered auto. This value is excluded from the policy and can be endorsed (PP 03 18) for up to $1,500.00 coverage.
Tapes, records, discs or other media / The policy excludes these items. Add coverage with endorsement PP 03 04 up to a specified limit of insurance.
Territory of Operations / Comments / Suggestions / Offered
(Y or N) / Accepted
(Y or N)
Mexico / Insured may drive auto in Mexico. If the insured is involved in an auto accident with another US citizen, a lawsuit would not be covered if brought in the US as it occurred outside the Personal Auto coverage territory. Add Limited Mexico Coverage (PP 03 21). This endorsement will not protect the insured against a suit brought in Mexico nor will it fulfill Mexico’s legal requirements to carry admitted insurance.
Outside policy coverage territory / Renting a vehicle in any country requires liability coverage approved in that country. The insured may also need medical benefits and coverage for damage to the vehicle. Most rental car companies offer approved primary liability insurance and damage waiver to cover the other exposures as needed. The Umbrella / Excess Liability policy may be inadequate to cover this risk as it is likely not admitted or approved in that country. Client should purchase all available insurance through the rental company.
Coverage Review
Liability Coverage / Offered
(Y or N) / Accepted
(Y or N)
Limits / Minimum state required limits
BI Limit per person $ / BI Limit per accident $
PD Limit per accident $
CSL $
Increased limits offered and accepted
BI Limit per person $ / BI Limit per accident $
PD Limit per accident $
CSL $
Limits match underlying requirements for Personal Umbrella policy
Personal Injury Protection BI Limit per person $
Excess PIP Limit per person $
Medical Payments / Offered
(Y or N) / Accepted
(Y or N)
Limits / Per person limit $
Increased limit offered. Limit per person $
Offer accepted
Offer rejected
Uninsured / Underinsured Motorists / Offered
(Y or N) / Accepted
(Y or N)
Limits / Per person limit $ Per accident limit $
Increased limit offered. Limit per person $
Offer accepted
Offer rejected (waiver signed by policyholder)
Physical Damage Coverage / Offered
(Y or N) / Accepted
(Y or N)
Other Than Collision / Coverage offered and accepted
Coverage offered and rejected
All owned autos covered
Specified vehicles only covered
Deductible $ all vehicles
Deductible $ specified vehicle #
Deductible $ specified vehicle #
Deductible $ specified vehicle #
Collision / Coverage offered and accepted
Coverage offered and rejected
All owned autos covered
Specified vehicles only covered
Deductible $ all vehicles
Deductible $ specified vehicle #
Deductible $ specified vehicle #
Deductible $ specified vehicle #
Identify endorsements from review above and add to application and policy.
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