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Question: I hope you could help me interpret the policy language regarding non-owned autos under Damage to Your Auto, Personal Auto Policy (PAP). If an insured rents a vehicle for three months, would that be considered available for his regular use?

— Indiana Subscriber

Answer: Although “non-owned auto” under the PAP often includes rental cars, the rental vehicle still must otherwise meet the definition of a non-owned auto and not be “furnished or available for the regular use” of the named insured.

Courts consider the general availability of the vehicle and the frequency of use by the insured. A few years ago, the Supreme Court, Appellate Division of New York found that a rental vehicle did not meet the definition of a non-owned vehicle when it was available for regular use for 55 days. [Elrac, Inc. v. GE Capital Ins. Co.]

Although there is no single objective guideline for determining when a rental car becomes furnished for regular use, most court decisions are consistent with Elrac. While a week's or perhaps even a month's rental of a car would probably qualify as a non-owned auto not readily available for the regular use of the insured, a threemonth rental with the insured using the car every day on a regular basis probably would not.

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