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P&C: Commercial Auto

Women wearing yellow headphones studying in front of a laptop wording study notes

Commercial Auto

A commercial auto policy is just like a regular auto policy. It can cover liability and it can cover physical damage.

The type of business you have will determine what kind of policy you have, and each type has it’s own symbol numbers. Every state is a little different on what it wants you to know, but here are the basics:

  • Business Auto – A policy for a business that has cars, but they aren’t in the business of cars. (Think of Stanley Steamer, they own a ton of vans, but they are in the carpet business, not the car business.) Business Auto uses the symbols 1-9.
  • Garage Auto – A policy for business that are in the business of cars. A car dealership for instance. These policies use the symbol of 20-29.
  • GarageKeepers – If you are in the business of handling other people’s car, you will want GarageKeepers. This will cover you when you’re in possession of a customers car. For instance, you’re a repair shop and you need to test drive the car you repaired and you crash it. This is the policy that will pay to fix your customers car. This is policy uses the symbol of 30.
  • Motor Carrier/Trucker – A policy for those who haul good with trucks. These policy symbols are 40-50’s.

Most states DO NOT ask about this one. Check your course. If it does, below is some helpful info.

Breakdown

Now to any one of these policies you can add Business Auto Physical Damage which will basically give you Comprehensive and Collision on the cars/trucks you have. However, they break down the names further:

  • Comprehensive (basically anything that happens other than collision)
  • Specified Cause of Loss (fire, lightening, explosion, etc)
  • Collision Coverage (hitting something)
  • Towing (money to have it towed if it breaks down)
  • Glass/Bird/Missiles (self explanatory)

Recommended: Gold

The GOLD Course is ALWAYS the recommended class series for all students as it teaches the material in more depth. Over 30 hours of the most in depth classes with a more intensive teaching of the topic. Learn more about P&C GOLD

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