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7.9 Selected Endorsements

Towing and Labor Costs Coverage Endorsement​

This endorsement provides a scheduled limit of insurance for towing and labor costs when Your Covered Auto becomes disabled. Coverage applies on a per occurrence basis, meaning the scheduled limit applies separately to each covered disablement. The amount of coverage is shown in the endorsement schedule. If a non-owned auto is disabled, the policy applies the broadest towing and labor coverage available to any Your Covered Auto listed in the schedule. This endorsement is designed to help pay for covered roadside assistance expenses, such as towing or labor performed at the place where the auto becomes disabled, subject to the scheduled limit and policy terms.

The insurer will pay only for labor performed at the place of disablement. This means the endorsement may cover labor costs for services performed where the covered auto became disabled, such as roadside assistance at the breakdown location. It does not cover labor performed later at a repair shop or service facility.

Extended Non-owned Coverage – Vehicles Furnished or Available for Regular Use​

The Extended Non-Owned Coverage Endorsement modifies the Personal Auto Policy by removing certain exclusions under Part A: Liability Coverage and Part B: Medical Payments Coverage. This endorsement is designed for situations where an insured regularly uses a vehicle they do not own, such as a company car furnished or available for regular use. Without the endorsement, regular-use non-owned vehicles are commonly excluded or limited under the standard policy. Under Part A, the endorsement extends liability coverage for certain non-owned vehicles that are furnished or available for the insured's regular use. Under Part B, the endorsement provides Medical Payments Coverage for bodily injury sustained by an insured while occupying, or when struck by, a vehicle other than Your Covered Auto that is available for regular use. A key learning point is that this endorsement helps fill a coverage gap for insureds who regularly use a non-owned vehicle, such as an employer-provided auto.

Coverage under the Extended Non-Owned Coverage Endorsement applies to the individual specifically named in the endorsement. For this reason, the endorsement is sometimes referred to as the Extended Non-Owned Coverage for Named Individual Endorsement. The endorsement may also include an option to extend coverage beyond the named individual. When this option is selected, coverage may apply to the named individual and their family members, including the named individual's spouse. This is an important distinction because the endorsement does not automatically apply to every insured under the policy. The schedule or wording of the endorsement must be reviewed to determine who is covered.

Coverage provided by the Extended Non-Owned Coverage Endorsement remains subject to the other terms, conditions, and limitations of Part A: Liability Coverage and Part B: Medical Payments Coverage. This means the endorsement does not replace the standard policy provisions. Instead, it modifies them only to the extent stated in the endorsement. Coverage for the non-owned vehicle applies on an excess basis. Therefore, any insurance that applies specifically to the non-owned vehicle pays first. The insured's Personal Auto Policy applies only after that other applicable insurance has been used, subject to the policy limits and endorsement provisions.

Joint Ownership Endorsement​

For coverage provided by this endorsement, the definitions of “you” and “your” are amended to include two or more individuals who jointly own an eligible vehicle. This endorsement may be used when the joint owners do not meet the standard policy definition of “you.” For example, the joint owners may be individuals who live in the same household but are not spouses, or they may be relatives who do not live in the same household. This provision allows the policy to recognize multiple joint owners as insureds for purposes of the coverage provided by the endorsement.

The endorsement automatically adds an exclusion under Part A: Liability Coverage. This exclusion removes liability coverage for the ownership, maintenance, or use of any vehicle, other than Your Covered Auto, by:

  • A nonresident relative; or
  • A family member of a nonresident relative.

This means the endorsement is designed to extend coverage for the jointly owned eligible vehicle, but not necessarily for other vehicles used by nonresident relatives or their family members. However, the endorsement also gives the insurer and insured the option to remove this exclusion. If the exclusion is removed, the policy may provide broader liability coverage, subject to the terms and conditions of the endorsement.

Miscellaneous Type Vehicle Endorsement​

This endorsement modifies the Personal Auto Policy by adding a definition for miscellaneous type vehicle. A miscellaneous type vehicle means a motor home, ATV, dune buggy, or golf cart. Some insurers may also allow motorcycles to be insured under this endorsement, although a separate motorcycle policy may be required. A snowmobile is not included in the definition of miscellaneous type vehicle. When this endorsement is added, Your Covered Auto may include a miscellaneous type vehicle that is owned by the named insured and specifically described in the endorsement schedule. The endorsement may also extend coverage to a non-owned miscellaneous type vehicle when it is being used as a temporary substitute for a covered miscellaneous type vehicle. A newly acquired miscellaneous type vehicle is subject to the same notice requirements that apply to newly acquired eligible vehicles. This means the insured must notify the insurer within the required time period for coverage to continue.

Part A – Liability Coverage​

Under Part A: Liability Coverage of an unendorsed Personal Auto Policy, liability coverage is generally excluded for vehicles with fewer than four wheels and for vehicles designed mainly for use off public roads. The Miscellaneous Type Vehicle Endorsement modifies this exclusion by creating an exception for miscellaneous type vehicles that are specifically scheduled on the endorsement. This allows liability coverage to apply to the scheduled vehicle, subject to the policy terms and any endorsement limitations. The insured may also choose to apply the Passenger Hazard exclusion. When this exclusion applies, the insurer does not provide liability coverage for bodily injury to a person occupying the miscellaneous type vehicle, such as a passenger. A key learning point is that the endorsement can add liability coverage for certain recreational or specialty vehicles, but coverage may still be limited if the Passenger Hazard exclusion is selected.

Part B – Medical Payments Coverage​

Under Part B: Medical Payments Coverage, the unendorsed Personal Auto Policy generally excludes coverage for bodily injury sustained while the insured is occupying a vehicle with fewer than four wheels. The Miscellaneous Type Vehicle Endorsement modifies this exclusion by adding an exception for bodily injury sustained while occupying a described miscellaneous type vehicle. This means Medical Payments Coverage may apply when the insured is injured while occupying a miscellaneous type vehicle that is specifically listed in the endorsement, subject to the policy terms, limits, and exclusions.

Part D – Coverage for Damage to Your Auto​

Under Part D: Coverage for Damage to Your Auto, the Miscellaneous Type Vehicle Endorsement may provide physical damage coverage for a described miscellaneous type vehicle. When the described vehicle is a motor home, Part D also includes coverage for direct and accidental loss to certain facilities and equipment used with the motor home. Covered items may include cooking and refrigeration facilities, plumbing, awnings, and cabanas. However, Part D does not cover all property that may be kept in or used with the motor home. Coverage does not apply to loss involving clothing, luggage, business or office equipment, articles used as sales samples, or articles used in exhibitions. The endorsement also excludes loss caused by or resulting from fungi, wet or dry rot, or bacteria. A key learning point is that the endorsement may broaden physical damage coverage for motor home equipment, but it still excludes personal belongings, business-related property, and certain contamination or deterioration losses.

Under Part D: Coverage for Damage to Your Auto, the definition of non-owned auto is amended by the Miscellaneous Type Vehicle Endorsement. With this endorsement, a non-owned auto may include a non-owned miscellaneous type vehicle when it is being used as a temporary substitute for a described miscellaneous type vehicle. The Part D limit of liability for a covered miscellaneous type vehicle is the lesser of:

  • The scheduled limit shown in the endorsement;
  • The actual cash value of the stolen or damaged property; or
  • The amount necessary to repair or replace the property.

This means the insurer will not pay more than the lowest applicable amount. The scheduled limit sets an important maximum, even if the actual cash value or repair cost is higher.

Limited Mexico Coverage Endorsement​

This endorsement provides limited coverage for certain losses and accidents that occur in Mexico. Coverage applies only on an excess basis, meaning it pays after any applicable primary insurance has been used. To qualify for coverage, the accident or loss must occur:

  • In Mexico;
  • Within 25 miles of the United States–Mexico border; and
  • While the insured is on a trip to Mexico lasting 10 days or less.

This endorsement is not intended to satisfy Mexican auto insurance requirements. The insured must first purchase primary auto insurance from a licensed Mexican insurance company. A key learning point is that this endorsement offers limited excess protection for short trips near the border, but it does not replace the need for proper Mexican auto insurance.

Coverage under the Limited Mexico Coverage Endorsement does not apply unless the required primary insurance is in place. The insured must first purchase primary coverage from a licensed Mexican insurance company. Coverage is also excluded if the insured is occupying an auto other than Your Covered Auto. In addition, the endorsement does not extend coverage to any person who is a citizen or resident of Mexico. The insurer’s duty to defend is limited to legal action brought in the United States. This means the insurer is not required to defend lawsuits or legal proceedings brought in Mexico. For physical damage losses, repairs made in Mexico are covered only if the auto cannot be driven in its damaged condition. A key learning point is that this endorsement provides only limited excess protection. It does not replace Mexican auto insurance, does not apply broadly to all vehicles or persons, and does not provide a defense for legal actions brought outside the United States.

Rental Vehicle Coverage Endorsement​

This endorsement provides coverage for the insured’s financial obligations when a rental vehicle is damaged or lost. Coverage may include the insured’s responsibility for actual damage to the rental vehicle, loss of the rental vehicle, and loss of use charged by the rental company. Loss of use refers to the rental company’s loss of income while the damaged rental vehicle is unavailable for rental. Some insurers may allow this endorsement to apply when the rental vehicle is used for business purposes, but this depends on the policy and endorsement wording. Coverage typically applies only to rental agreements lasting no more than 30 continuous days. A key learning point is that this endorsement helps protect the insured from certain costs imposed by a rental company after a covered loss to a rental vehicle, subject to the endorsement’s limits, conditions, and exclusions.