Commercial Auto

Defined

Commercial Vehicle Insurance is a policy of physical damage and liability coverages for amounts, situations, and usage not covered by a personal auto policy. Knowing the difference between a personal auto insurance policy and a commercial auto policy (and when you need which) is important business—for your business. This type of business insurance covers a variety of vehicles. You may also have heard of this coverage referred to as commercial auto insurance, commercial car insurance, truck insurance, or fleet insurance.

Auto Physical Damage Insurance

Automobile insurance coverage that insures against damage to the insured's own vehicle. Coverage is provided for perils such as collision, vandalism, fire, and theft.

Uninsured Motorists (UM) Coverage

Coverage for bodily injury (BI) and, in some states, property damage (PD) incurred by an insured when an accident is caused by a motorist who is not insured. This coverage allows an insured to collect from his or her insurer as if it provided liability coverage for the negligent third party.

Underinsured Motorists (UIM) Coverage

Coverage for bodily injury (BI) and, in some states, property damage (PD) incurred by an insured when an accident is caused by a motorist who is not sufficiently insured. Depending on the jurisdiction, UIM coverage may be written with a limits trigger or a damages trigger. With a limits trigger, UIM coverage applies when the limits of liability carried by the other motorist are lower than the UIM limits carried by the insured. With a damages trigger, UIM coverage applies when the insured's damages are more than the at-fault party's available limits.

Auto Medical Payments

Optional coverage under an auto policy to pay for medical expenses for an insured who sustains bodily injury (BI) caused by an auto accident, without regard to fault. Coverage for persons other than the named insured and his or her family members is typically restricted to circumstances when they are occupants of the insured auto.

Motor Carrier Policy

A commercial auto policy introduced by Insurance Services Office, Inc. (ISO), in 1993 to address the needs of the motor carrier (i.e., trucking) industry. Coverages available include auto liability, trailer interchange, and auto physical damage; other coverages are available by endorsement. The policy was developed as an alternative to the truckers policy because of the changes taking place in the industry. That is, the truckers policy is applicable only for "for-hire" motor carriers, whereas the motor carrier policy is appropriate for all types of motor carriers—for-hire, private, or a combination of both types of operations.