Category: Auto Insurance
Commercial Auto Insurance
Commercial auto insurance is in principle similar to personal auto insurance. However, there are some distinct considerations to keep in mind when purchasing commercial auto insurance. By understanding these differences it will enable the insured to ask pertinent questions to better protect against their risks.
For many businesses today umbrellas have become a large part of their risk management and risk transfer. What many insureds do not understand is that umbrellas don’t automatically cover over the commercial auto policy. This largely depends on the carrier writing the umbrella. This of course is very important as having an umbrella in place is very advantageous for businesses who have the umbrella over top of their other coverage.
Although the minimum limits may vary state to state for commercial auto or personal auto it is essential to have an adequate minimum limit in regards to protecting the commercial business from potential risks. In many states nothing less than one million Combined Single Limit should be purchased. This however is best discussed with an insurance agent to find out what other similar businesses are insuring for.
One typical coverage often seen on personal auto insurance policies is “rental and towing” coverage. This however is not the case when it comes to commercial auto insurance. Although in some instances this can be bought for a commercial auto policy it is certainly by no means typical or standard. This is best discussed with the agent or insurance carrier who is writing the policy.
The above mentioned points are in no ways comprehensive but a good starting point when shopping for commercial auto insurance and discussing with an insurance agent or carrier. Of course it is always very important to read the insuring agreement or policy to clarify and understand the specifics.
How often should I shop my auto insurance?
This is a question that usually comes up in casual insurance conversations amongst friends and family. Regularly there are those who have had their existing auto insurance with the same carrier for decades and then there are those who shop their auto insurance every year at renewal.
Those who keep their auto insurance carrier for decades usually do so for a number of different reasons. These reasons range from they have developed a personal relationship with the agent or agency to they just never have bothered to shop their auto insurance. However, this group for whatever reason more often than not are missing out on considerable savings by not more regularly entertaining auto insurance quotes.
The other group that shops their auto insurance on an annual basis often do so because they have typically found that their are possible savings and they don’t mind taking the time to do so. This group are usually consumer savvy shoppers and want to know that they are getting the best deal.
There is however another group in the middle that will typically shop their auto insurance every two to three years who are looking for savings and a good value however don’t believe it is necessary every year. This is probably the best approach as there is always the balance between time and money. So if shopping annually for auto insurance is not in your time budget then do make it a point to do it every two to three years.
With the internet so accessible and all the auto insurance carriers competing for your business why not shop today…
Will my insurance cover me if I was drunk and got into a car wreck?
Typically an insurance policy doesn’t distinguish the condition of a driver at the time of an accident. Whatever auto insurance carrier is on the auto at the time of loss would be responsible for all coverages in place at the time of loss as they would apply. Of course this may vary from carrier to carrier but is best determined by carefully reading the policy. However, once a driver has a DUI on their driving record it will significantly affect their ability to obtain auto insurance at a reasonable price if attainable at all. It is always best to know the specific policy exclusions and then to reshop auto quotes.
What is the “Limit of Insurance”?
Insurance is always a little bit tricky to understand and when it comes to auto insurance it certainly is no different. For example there are typically 13 exclusions in a Business Auto Policy that should always be understood, however, at the end of the day regardless of the number of covered autos, insureds, premiums paid, claims made, or vehicles involved in an accident the most the insurer will pay on any auto policy will be the limit of insurance shown on the declarations page.
One thing to note is to always be sure that you are comfortable with your limit of insurance as this is the bottom line of what your auto insurance will pay when everything is tallied up.
What is Symbol 8 on my auto insurance?
Symbol 8 represents “hired autos” only. These are autos that the named insured either leases, hires, rents, or borrows. Symbol 8 gives the insured coverage for rented or leased autos during the policy period. Although this will save the insured premium dollars, there are other things the risk manager needs to know concerning the use of symbol 8.
For example let’s take a look at the Gartner Company. The company risk manager explains that the company does not own any autos, but does rent autos every once in a while, and even requires employees to use their own cars on company business. Jeff, the risk manager explains that the company’s current auto policy uses symbol 1 to describe covered autos and as a result has a very expensive premium because of the broad coverage. Jeff the risk manager asks how to lower the premium and still have appropriate coverage.
Max which is Jeff’s agent then explains both symbols 8 and 9 and how this can protect the company while reducing the cost of insurance.
It is important to note that under symbol 8 autos leased, hired, rented, or borrowed from any of the named insured’s employees, partners, members of a limited liability company, or members of their households are not covered.
Symbol 8 is only applicable when the named insured rents, leases, or hires an auto whether at an airport or any other car rental business. Remember that if an employee is on company business and rents a car in his or her own name, symbol 8 will not apply.
Lastly, it is very important to understand that a hired auto is one that is not owned by the named insured!
What is Symbol 1 on my auto policy mean?
Symbol 1 on a auto policy signifies “any auto.” The significance of this coverage symbol for example could be the Kennedy Company, which buys insurance coverage for its auto exposures. Bob, the president of the company, favors a comprehensive approach and thinks any auto that the company owns, hires, borrows, or uses in its business should be insured in order to protect his company from financial loss. The company treasurer notes that the company acquires new autos occasionally, but he does not always have the time to report these new cars to the insurer thus creating an exposure.
In order to handle the request of the insured, the insurance agent for the Kennedy Company uses symbol 1, “any auto”. Symbol 1 meets the comprehensive approach that Bob wants. And, it doesn’t need any correspondence to the insurance company every time an auto is acquired. The BAP covers such autos automatically under symbol 1 for the remainder of the policy period.
Auto Insurance Definitions
Business Auto Glossary
Accident:
An unforeseen and unplanned event on the part of the insured.
Appraisal:
The process by which the amount of physical damage loss on a covered auto is decided.
Collision:
The covered auto’s collision with another object or its overturn.
Comprehensive Coverage:
Any cause of loss except collision.
Concealment, Misrepresentation Or Fraud:
Actions on the part of the insured that allow the insurer to void coverage.
Coverage Territory:
The U.S., its territories and possessions, Puerto Rico, and Canada.
Covered Pollution Cost Or Expense:
Any cost or expense arising out of any request, demand or order demanding that the insured cleanup or respond to the effects of pollutants.
Deductible:
The amount that the insured is responsible for in the event of a loss.
Designated Insured:
A certain person or organization scheduled as an insured on an endorsement for liability coverage.
Designation Symbol:
Any of nine numerical symbols used on the BAP to designate a covered auto.
Diminution In Value:
The loss of value for a damaged auto after that vehicle has been repaired.
Direct Loss:
Auto physical damage loss that does not include loss of use of the auto.
Drive Other Car Coverage:
Insurance coverage for the driver of an auto that is not owned by either the driver or the named insured.
Drive-Away Contractors:
An individual or company hired by an auto dealer to drive cars from point A to point B.
Duties Of The Insured:
The list of steps the insured must take after a claim or loss to assist the insurer in settling the claim or loss.
Exclusion:
Sets out certain circumstances under which liability coverage is precluded.
Hired Autos:
Autos that the named insured leases, hires, rents, or borrows.
Insured:
Any person or organization qualifying as an insured in the who is an insured clauses of the BAP.
Leased Worker:
A person leased to the named insured by a labor leasing firm.
Limit Of Insurance:
The most the insurer will pay for the total of all damages and covered pollution cost or expense combined.
Loss:
Direct and accidental loss or damage to a covered auto.
Nonowned Autos:
Autos that the named insured does not own, lease, hire, rent, or borrow that are used in connection with the named insured’s business.
Other Insurance:
Coverage for the covered auto on another insurance policy.
Pollutant:
Any solid, liquid, gaseous, or thermal irritant or contaminant.
Private Passenger Auto:
A four-wheel auto of the private passenger or station wagon type, including a pickup, panel truck, or van not used for business.
Property Damage:
Damage to or loss of use of tangible property, in contrast to the direct loss definition.
Rolling Store:
A vehicle used as a mobile snack bar or lunch van, bringing products to customers.
Snowmobile:
A land motor vehicle that is designed for use on ice and snow and mainly off public roads.
Subrogation:
A right of the insurer to recover damages from another if the insurer has paid those damages for a covered loss.
Supplementary Payments:
Payments made by the insurer in addition to the limit of insurance.
Temporary Substitute Auto:
An auto not owned by the named insured while used as a temporary substitute for a covered auto owned by the named insured that is out of service.
Temporary Transportation Expenses:
Expenses incurred by the insured to rent or borrow a car because the covered auto has been stolen.
Temporary Worker:
A worker furnished to the named insured for a finite time period to supplement the regular workforce under special work situations.
Is there any special auto insurance for Hispanics?
Although there isn’t really any special auto insurance for hispanics there are now a greater amount of Spanish speaking insurance agents throughout the country. With the increase of the Latino and Hispanic population there has been a greater understanding of the Hispanic needs in regards to purchasing auto insurance.
However, like anything else it is still important to shop around for auto insurance and not just limit your auto insurance quotes to Hispanic auto insurance advertisers. It is still best to look at a variety of auto insurance companies as many will have Spanish speaking customer service representatives.
Thanks for the question and be sure to look at all the Hispanic and Latino insurance agencies you can befor deciding what auto insurance coverage is best whether your Latino or Hispanic.
Safe Driver’s Insurance
Insurance companies absolutely love safe drivers and therefore offer their deepest discounts to those whose driving record is squeaky clean. This means no accidents, no speeding tickets or generally no comprehensive claims. Combine all of these factors together and insurance companies know they can have a profitable account and customer.
When drivers are responsible and some cases fortunate, insurance companies reward them with low premiums and competive offers. Safe Driver’s Insurance is where all those on the road want to be especially in a tough economy. By having an insurance carrier’s best rates drivers will notice a significant savings in comparison to those whose driving records are not so pristine.
If your driving record is not very clean it can be worked on to earn a safe driver’s discount by staying claim free for a minimum of three years and preferrably five years. This means no traffic violations or accidents in addition to paying your premium on time. The reason payments come into play in many states is that credit scores can either positively or negatively impact your rates.
A Safe Driver’s Discount can be had but it does take some work and patience if your not already there. However, the savings is well worth the effort! So drive safe and be alert and you too can earn the Safe Driver’s Insurance.
Car Insurance Basics
The basics of car insurance for most begins with liability insurance. This insurance for your autos will cover damages that you may be found liable for in case of accident or negligence that you are responsible for. This coverage for liability is typically mandated by all states to cover the cost of indemnifying the other party. Of course the limits are different state by state as to how much liability insurance an individual must have but generally it is somewhere around $50,000. This can be determined by talking to an insurance agent in your state.
Many individuals will also carry coverage for the loss or damage to their auto as well. This normally is written as “Comp” (comprehensive) and “Collision”. This amount of coverage is typically written as Actual Cash Value of the auto minus the deductible. “Collision” coverage will insure your vehicle if your at fault and your auto is damaged whereas “Comp” will cover your vehicle for any other damage to your vehicle other than a collision. Keep in mind that if your vehicle is damaged and it’s found to be not your fault then the other party involved, if there is one, is responsible for taking care of your costs.
Another coverage that many will purchase along with their auto insurance is “uninsured” or “underinsured” auto coverage. This protects the policy holder from loss resulting from another’s fault and the owner at fault doesn’t either have sufficient limits or no insurance at all. The uninsured or underinsured coverage steps in and will cover the policy holder up to the specified limits. Generally the limit here reflects the liability coverage limits.
Some other coverage that some purchase are “Personal Injury Protection” and “Towing”. Keep in mind that there may be other coverages available that are only offered in your specific state and then other coverage that may not be covered or available. Of course by consulting with your local insurance agent this can be easily determined. Keep in mind that many auto insurance companies like Progressive, Nationwide, Allstate to just name a few normally have different bells and whistles they include. So be sure to shop around and find what best fits your basic auto insurance needs.
