Commercial Auto Explained

Understanding Your Commercial Auto Insurance Policy

Each coverage purchase on a commercial auto insurance policy (liability, physical damage, etc.) has a defined coverage represented by a symbol. The symbols chosen when purchasing a commercial auto insurance policy determine what vehicles will be covered by the policy and in what capacity. An understanding of the optional covered auto symbols is important when purchasing a commercial auto insurance policy. Symbol 1 (Any Auto) – As is implied by the term any auto, Symbol 1 covers any auto used by a business whether it is listed on the declaration pages of the policy or is purchased after the policy period begins. Symbol 1 offers the best protection but is not offered by all companies. Symbol 2 (Owned Autos Only) - Symbol 2 offers coverage on all autos owned by the named insured, including vehicles purchased after the during the policy period. Because this coverage applies only to autos owned by the named insured and does not extend coverage to hired or rented autos it is a more appropriate choice for physical damage coverage and less appropriate for liability. Symbol 3 (Owned Private Passenger Autos Only) – This coverage is similar in structure to Symbol 2 but applies only to private passenger vehicles. Symbol 4 (Owned Autos Other Than Private Passenger Autos Only) – Like Symbols 2 and 3, this coverage applies to owned autos which cannot be classified as private passenger. Symbol 5 (Owned Autos Subject To No-Fault) – Coverage applies to autos owned by the named insured, which are licensed or primarily garaged in a state where no-fault benefits are required. Symbol 6 (Owned Autos Subject To Compulsory Uninsured Motorist Law) - Coverage applies to autos owned by the named insured, which are licensed or primarily garaged in a state where uninsured motorist coverage is mandatory. Symbol 7 (Specifically Described Autos) – This coverage applies only to those autos which are specified in the declarations section of the policy. Only limited coverage is offered to those autos purchased during the policy period. Symbol 8 (Hired Autos Only) – Provides coverage for autos which are leased, hired, rented or borrowed by the named insured. Coverage is excluded on autos leased, hired, rented, or borrowed from employees, family members, partners, or members in the case of a limited liability company. Symbol 9 (Non-owned Autos) – This coverage is easily confused with that of Symbol 8 , but is designed for a different purpose. Symbol 9 covers autos used in a named insureds business which are not owned, leased, rented, or borrowed. Request a free quote