Nonowned Auto Coverage and Family Members

We have a situation where the husband has his own auto policy and the wife has her own policy. The husband has no comprehensive or collision coverage on his policy, but the wife has both. The husband has his car in the repair shop and is driving a loaner from the shop. He has an accident and damages the loaned car. There is no coverage under his policy for the damage, but we were wondering if the wife's policy would somehow apply. What do you think?

Ohio Subscriber

The personal auto policy defines a nonowned auto as any private passenger auto not owned by or furnished or available for the regular use of the named insured or any family member, while in the custody of the named insured or any family member. And, a family member is defined as a person related to the named insured by blood or marriage and who is a resident of the named insured's household. The husband is certainly a family member as defined under the wife's policy. The car he was driving was a nonowned auto by definition. So, even though the husband's own policy would not provide coverage for damage to the loaned car, the wife's policy will. There is also no exclusion that would apply in this instance.

You should note, however, that the insurance coverage provided by the wife's auto policy is excess over any other collectible source of recovery, and that includes any coverage provided by the owner of the nonowned auto.