Property and Casualty Insurance Practice Exam

What does the Drive Other Cars (DOC) Coverage Endorsement do?

1. Provides coverage for accidents involving rented vehicles only

2. Extends coverage to vehicles not owned, hired, or borrowed by the insured

3. Acts as a secondary insurance policy for owned vehicles

4. Excludes all non-commercial vehicles from coverage

The correct answer is: Extends coverage to vehicles not owned, hired, or borrowed by the insured

The Drive Other Cars (DOC) Coverage Endorsement is designed to extend insurance coverage to vehicles that are not owned, hired, or borrowed by the insured, enabling protection when the insured is driving someone else's car. This is especially useful in scenarios where the insured does not have a personal auto policy that covers such situations, providing peace of mind and financial protection against liability or damages incurred while operating a vehicle that does not belong to them. This endorsement is particularly beneficial for individuals who may occasionally drive different cars, such as when borrowing a friend's vehicle for an errand or using a family member's car. The DOC coverage alleviates potential gaps in coverage that could arise under standard personal auto policies, which typically do not cover vehicles outside of the insured's ownership. In contrast, the other choices either limit the scope of coverage or misrepresent the function of the endorsement. For instance, stating that it provides coverage only for rented vehicles inaccurately narrows its intent, as it is not exclusive to rented cars. Similarly, describing it as a secondary insurance policy for owned vehicles does not align with its purpose of extending coverage to non-owned vehicles. Lastly, excluding all non-commercial vehicles from coverage is incorrect, as the endorsement is intended to apply to various types of