Commercial Auto Insurance – What Autos are Covered?

Commercial Auto Insurance

Commercial Auto Insurance has five different sections: Covered Autos, Liability Coverage(s), Physical Damage Coverage(s), Conditions, and Definitions. You will find these all inside your policy agreement. This type of policy can be written as a stand-alone policy or included in Commercial Package Policy.  Today, we will be discussing Section I- Covered Autos.

What autos are covered in a Commercial Auto Policy? 

The following Autos are ones that may be covered in a Commercial Auto Policy:

  1. Any “Auto”
  2. Owned “Autos” Only- Only those autos you own. Even autos you purchase/acquire after your policy has started. Also, if you use a non-owned trailer, but, it’s attached to a vehicle you own that’s covered- the trailer is covered in this case as well. 
  3. Owned Private Passenger “Autos” Only- The private passenger autos you own- including ones acquired after the policy began. 
  4. Owned “Autos” other than private passenger “Autos” Only- Only those “Autos” you own that are not of the private passenger type, also, again, including autos you acquire after the policy began. And non-owned trailers pulled by your owned vehicle that’s covered (trailers are covered in this case)
  5. Owned “Autos” Subject to No Fault- The autos you own that are required to have No-Fault benefits in the state where they are licensed or principally garaged. This includes those autos you acquire after policy began provided they are required to have no-fault benefits also.
  6. Owned “Autos” subject to an Uninsured Motorist Law- Only those autos you own that because of the law in the state where they are licensed or principally garaged are required to have and can’t reject the uninsured motorist coverage. Again, if you acquire an auto that is subject to this law after policy begins, it is covered. 
  7. Specifically Described Autos- Only those autos described in the Declarations for which a premium charge is shown and also for non-owned trailers attached to covered auto.
  8. Hired “Autos” Only- Only those autos you lease, hire, rent or borrow. This does not include any auto you lease, hire, rent or borrow from any of your employees, partners (if you are a partnership) members (if you are an LLC) or members of their household. 
  9. Non-owned Autos Only- Only those autos you don’t own, lease, rent or borrow that’re used in connection with your business. This includes “autos” owned by your “employees”, partners (if you are a partnership), members (if you are a limited liability company) or members of their households but only while used in your business or your personal affairs.

If an auto is not specifically described, newly acquired autos are automatically covered for the remainder of the policy period. For a specifically described auto a newly acquired auto will be considered a covered auto only if: 

  1. Insurance company covers all autos the insured owns for that coverage or it replaces an auto that had that coverage. 
  2. The insured informs the insurer within 30 days of acquisition.

At Ferranti-Graybeal, we want to make sure you, our clients, consumers, and potential consumers understand your policy and what it covers and just as importantly, what it does not! 

Our Team of Experts is waiting to help you review, customize, and explain your policy to you, or help you choose a policy that suits your needs! 


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