What it does
CA 20 13 replaces a single liability limit with a schedule of limits per accident for different groups of owned autos:
- autos leased or rented under agreements that require the lessee or rentee to provide direct primary insurance (split into private passenger, commercial and other autos);
- autos leased or rented under agreements that do not require the lessee or rentee to provide direct primary insurance (same three groups); and
- autos owned by the insured and not subject to a lease or rental agreement.
Who needs it
Leasing companies and rental agencies with mixed books of business, where some customers insure the vehicles and others rely on the lessor's coverage, and where the lessor wants higher limits for its own operations than it provides to customers.
Quoting notes
Get vehicle counts and average lease terms for each group. Set the "does not require" limits at or above any financial responsibility minimums that apply to the renters. Combine with CA 20 11 and CA 20 09 for leases where customers insure the vehicles.
