What it does
The business auto form pays physical damage losses at the lesser of actual cash value or the cost of repair or replacement with like kind and quality. CA 04 41 Replacement Cost Coverage – Private Passenger Types changes the settlement basis for covered private passenger autos to replacement cost, as its title states. It was introduced with ISO's 2020 multistate revision.
ISO's 2026 multistate forms revision (CA-2026-OFR26) introduces a 09 27 edition of this form, approved for policies effective on or after September 1, 2027 in states where it has been adopted; the prior edition remains in use until then and in states that have not adopted the revision.
Who needs it
Businesses with newer company cars, especially those that would otherwise face depreciation on a total loss.
Key points
- Read the endorsement for eligibility conditions and how replacement cost is determined.
- For leased or financed autos, compare with auto loan/lease gap coverage (CA 20 71).
Quoting notes
Identify which private passenger autos qualify and confirm values.
