C-III.C · Personal Auto
Common auto endorsements (2): GAP, non-owners, company cars, transportation limits and custom equipment
Auto Loan/Lease Coverage (GAP): when a covered auto is a total loss, it pays the unpaid loan or lease amount less the Part D payment and less listed items such as overdue payments and extended warranty costs financed with the loan. Example: payoff $25,000, Part D pays $18,000, and the payoff includes $800 of overdue payments and $1,200 for an extended warranty. The endorsement pays $25,000 − $18,000 − $800 − $1,200 = $5,000.
Named Non-Owner Coverage: for a named individual who owns no vehicle but drives autos owned by others, such as borrowed or rented cars. It excludes any vehicle the named person owns, other than a newly acquired auto for 14 days, so it is not a substitute for insuring a car the person buys.
Extended Non-Owned Coverage, Vehicle Furnished or Available for Regular Use: the base PAP excludes liability and medical payments for a non-owned vehicle furnished for the insured's regular use, such as a company car. This endorsement restores liability, and medical payments if a premium is shown, for the named individual. It changes Parts A and B only, so damage to the company car itself is not picked up, and it does not apply to vehicles owned by the named individual or a family member.
Optional Limits Transportation Expenses Coverage: the base policy already pays transportation expenses after a covered loss, with a daily cap and a maximum. This endorsement raises those amounts. It does not create coverage for a loss that is not covered.
Custom equipment: the CDI outline names "Customizing Equipment Coverage (PP 08 18)". Under ISO's 2018 forms the matching endorsement is Excess Custom Equipment Coverage (PP 03 18). Custom equipment means non-original equipment such as winches, suspension enhancers, custom wheels and paintwork. The base policy limits it to $1,500, and the endorsement raises the limit to the amount scheduled. Audio, visual and data electronics are outside this definition.
Remember
· GAP = loan balance − Part D payment − overdue payments − financed extras (e.g., warranty).
· Named non-owner: for people who own no car; newly acquired auto covered 14 days only.
· Extended non-owned = Parts A and B for a regular-use car; custom equipment base limit $1,500.
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