What it does
Provides coverage for the named individual using non-owned autos. The 09 18 edition added optional Collision and Other Than Collision coverage for non-owned autos, which ISO introduced after insurer feedback on coverage options for millennials and other generations.
Who needs it
Business owners and employees who drive rental, borrowed or company cars but own no vehicle; drivers who need proof of insurance; people between vehicles.
Quoting and selling notes
- Pairs well with a personal umbrella requirement for auto liability.
- For a company car furnished for regular use, PP 03 06 is the more precise fix.
Business use notes for commercial agents
The PAP covers business use of private passenger autos, pickups and vans (Exclusion A.7 does not apply to them), but excludes the auto business (selling, repairing, servicing, storing or parking vehicles) for vehicles other than the insured's own covered auto, any vehicle used as a public or livery conveyance including time logged into a transportation network platform, and, for newly acquired pickups and vans, use for delivering goods unless incidental to an installing, maintaining or repairing business or to farming or ranching. Vehicles titled to or furnished by the business, heavier trucks and fleets belong on a commercial auto policy (CA 00 01), where "regular use" vehicles furnished by an employer are a common gap that PP 03 06 can fill.
Editions and availability
Current edition 09 18, replacing 01 05, 06 98. State adoption varies; many states use state-specific versions of the PAP endorsements.
