Joe wants PAP coverage for his company car. What coverage would you add?

• A. Named Non-owned coverage
• B. Extended Non-owned Liability coverage
• C. Drive Away Liability coverage
• D. False Pretense coverage

Answer: (B)

Non-owned auto liability coverage is what you need when you drive a vehicle you don’t own, such as a company car. The extended non-owned liability option provides broader protection for the use of non-owned autos in which you have permission, which fits a scenario where an employee uses a vehicle owned by their employer. It covers liability arising from that non-owned vehicle in a business context, making it the most appropriate choice for adding PAP coverage to a company car.

Named non-owned would require listing specific non-owned vehicles, which is more restrictive and less practical for a company car that may change or be used in various situations. Drive Away Liability and False Pretense coverage aren’t standard PAP coverages for this purpose and don’t address the need to cover liability when using a non-owned vehicle.