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2018 ISO personal auto policy targets millennials and more

By Sandee Perfetto  |  September 17, 2018

The 2018 version of ISO’s personal auto policy and new endorsements take aim at the millennial market and respond to an array of emerging issues, such as keyless entry and flying cars, while allowing some higher limits in areas feeling the effects of inflation.

The lifestyles of millennials, their growing clout in the marketplace, and their preference for greater customization influenced the direction of this year’s coverage innovations. They’re now the largest generation, representing 22 percent of adults, according to U.S. Census data, and 40 percent of car buyers by 2020, as estimated by J.D. Power & Associates.

ISO recently worked with Hanover Research to explore millennials’ attitudes toward insurance, their coverage needs, and how well they understand insurance products.

The personal auto policy program revisions more broadly reflect insurer input, general trends in the private passenger auto market, and changing household demographics.

New optional endorsements are as follows:

  • A new personal property coverage endorsement, in part, provides coverage for a specified aggregate limit of liability for personal property owned by an insured while anywhere in the world.
  • Replacement of lost or stolen key fobs—which cost $200 on average—can now be covered, as well as reasonable expenses per vehicle to access a covered car if the key or key fob is lost or stolen.
  • Pet injury coverage will provide for veterinary expenses or services incurred through bodily injury to a pet riding in an insured’s vehicle involved in an accident. Coverage applies only if at least one covered car carries other than collision and collision coverages and the pet is inside a covered car when the loss or injury occurs.
  • The child restraint system coverage endorsement provides for replacement cost of a child restraint system after an accident. The National Highway Traffic Safety Administration recommends that child car seats be replaced after a collision.

Changes to the personal auto policy include:

  • The public or livery conveyance exclusion also now incorporates the definition of “transportation network platform” and related exclusions, which formerly were addressed in an endorsement.
  • A new flying car exclusion recognizes the uncertainty of risks that may arise from flying cars or roadable aircraft. ISO recommends specialty policies to cover these vehicles.
  • The basic limit of liability for transportation expenses under physical damage coverage, previously $20 per day up to $600, has been increased to $30 per day with a maximum of $900, reflecting inflation in U.S. car rental costs.
  • The duties of the insured now require insureds to submit, as often as reasonably required, to giving recorded statements to help insurers gather claim information and potentially reduce fraud.

Learn more about the changes in ISO’s Forms Circular LI-PA-2017-160 on ISOnet®.


Sandee Perfetto is coverage director, personal auto/umbrella product development at ISO. She can be reached at Sandee.Perfetto@verisk.com.