by Ed Sneneh, Chicago Car Insurance Agent

Personal auto insurance is designed to provide protection for certain motorized vehicles. These vehicles have to meet certain criteria to qualify for this personal protection. Most eligible vehicles fall in the category of a "motorized four wheel vehicle that is owned by or leased to the insured, and is not used for any business purposes."

The above describes most personal autos and SUVs. Trucks and Vans that are not used for business purposes also qualify for a personal auto insurance policy coverage. Any vehicles that is used for business affairs, regardless of its type or body style, weight or shape, is not qualified for a personal auto insurance coverage.

The standard personal auto insurance policy to which most standard insurance companies subscribe,  describes "your covered auto" as one of the following:

(1) Any auto listed on the auto insurance policy declaration page of the policy. This

(2) Any private passenger auto, pickup or van that is acquired during the policy term, and which the insured person requested adding within 30 days from acquiring that auto. Note that this provision may not be the same among other companies (non standard auto insurance companies) where the insured person must immediately report the vehicle to their company to be properly covered.

(3) The auto is not used for business, delivery, or any other commercial purposes.

(4) Owned trailers when attached to a covered auto.

(5) Any non owned auto, van or truck that you do not own which is used as a temporary substitute for any other vehicle described in the policy which is out of its normal use because its breakdown, destruction, loss, servicing or repair.

Definitions of Non Owned Auto in Personal Auto Policy

In the personal auto insurance policy a non owned auto is a privately owned vehicle that is not owned by you and that is not furnished for your regular use. A vehicle that is owned by a corporation does not fall under this category. The same applies for vehicles that you or your spouse own, or vehicles that are owned by others but are furnished for your regular use. According to the standard personal auto policy both liability as well as comprehensive and collision coverages will extent to the " Non Owned Auto."

Standard Vs Non Standard Auto Insurance Companies.

The above description pertaining the personal auto policy is more appropriate for standard insurance companies such as the Hartford auto insurance, Progressive auto insurance, AAA auto insurance, Travelers auto insurance, Allstate auto insurance, State Farm auto insurance, and many other good companies. Other companies that fall under the classification of non standard car insurance companies may alter their definitions of 'Your Covered Auto'. It is always recommended to read your policy and to understand what is covered and what is not.

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