Arizona Adjuster Practice Exam

What endorsement can be added to a business auto policy to provide coverage for personal use of non-owned cars?

1. Business use coverage

2. Drive other car coverage

3. Personal auto endorsement

4. Non-owned auto liability coverage

The correct answer is: Drive other car coverage

The endorsement that can be added to a business auto policy to provide coverage for personal use of non-owned cars is the endorsement for "Drive Other Car coverage." This coverage extends liability protection to the insured when they drive vehicles that are not owned by their business or themselves. It is particularly valuable for business owners or employees who may need to drive rental cars or vehicles borrowed from family or friends for personal use, ensuring they have liability coverage in case of an accident. This endorsement is designed specifically to address situations where the insured may need to operate a vehicle that is not part of the business auto policy. It provides peace of mind and helps protect against potential financial losses arising from liability associated with non-owned vehicles. While the other choices may suggest various forms of coverage, they do not specifically address the need for coverage when driving a non-owned vehicle for personal use. For instance, the "Business use coverage" generally applies to vehicles owned by the business, while the "Personal auto endorsement" typically refers to personal vehicles rather than business-related circumstances. "Non-owned auto liability coverage" might seem relevant but may not convey the same breadth of protection as the "Drive Other Car" endorsement, especially regarding personal use. Therefore, the endorsement focused on providing coverage specifically for personal use