What it does
Single interest auto physical damage insurance protects the financial institution's interest in a financed or leased auto rather than the borrower's equity. ISO publishes it as a complete policy, not an endorsement. CA 26 01 is the individual policy form; CA 26 02 is the finance master policy form used to cover a portfolio. Both are current in the 11 20 edition (ISO also published table-of-contents forms CA R 261 and CA R 262 keyed to the 11 20 editions).
ISO's 2026 multistate forms revision (CA-2026-OFR26) introduces a 09 27 edition of this form, approved for policies effective on or after September 1, 2027 in states where it has been adopted; the prior edition remains in use until then and in states that have not adopted the revision.
Who needs it
Lenders and lessors whose borrowers are required to carry physical damage but may let it lapse. The policy is bought by the institution, not the borrower.
Key provisions and companions
- Deductibles are handled by Single Interest Deductibles CA 26 05.
- CA 26 04 amends the single interest policy provisions with a public or livery passenger conveyance and on-demand delivery services exclusion, the single interest counterpart of CA 23 45.
- ISO's terrorism exclusions CA 23 84 and CA 23 85 list the Single Interest Automobile Physical Damage Insurance Policy among the forms they modify.
Quoting notes
Ask the lender for portfolio size, average loan balance, auto types, and how lapse of the borrower's coverage is tracked. Decide between the individual form (CA 26 01) and the master form (CA 26 02) based on whether coverage is issued per loan or for a book of loans.
