Test Your Knowledge on Commercial Auto Insurance Policies

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Questions and Answers

What is the difference between Personal Auto policies and Commercial Auto policies?

There is no difference

Personal Auto policies cover more types of vehicles than Commercial Auto policies

Commercial Auto policies are cheaper than Personal Auto policies

Personal Auto policies are for individuals, while Commercial Auto policies are for businesses (correct)

What types of companies are covered under Business Auto policies?

Companies that have cars but are not in the business of cars (correct)

Companies that provide transportation by auto for a commercial enterprise

Companies that sell, store, park, or repair cars

Companies that move cargo

What is the difference between Garage policies and Garage Keeper policies?

Garage policies are for businesses that keep a customer's car for service or repair, while Garage Keeper policies are for businesses that sell, store, park, or repair cars (correct)

Garage policies are for businesses that provide transportation by auto for a commercial enterprise, while Garage Keeper policies are for businesses that move cargo

Garage policies are for businesses that have cars but are not in the business of cars, while Garage Keeper policies are for businesses that are in the business of cars

There is no difference

What do symbols 21-31 represent in Commercial Auto policies?

Garage Signup and view all the answers

What is Business Property Damage coverage?

Coverage for collision or other damages Signup and view all the answers

What is the difference between Loss of Use and Diminished Value coverage extensions?

Loss of Use covers rental expenses for businesses renting cars, while Diminished Value covers the decrease in value of a vehicle after it has been damaged and repaired Signup and view all the answers

What is the difference between Section 2 of Business Auto policies and Garage Auto policies?

Business Auto separates property damage and bodily injury, while Garage Auto has a combined single limit Signup and view all the answers

What is covered under Transportation Expenses coverage extension?

Loss of income for the rental car company due to a rented vehicle being in the repair shop Signup and view all the answers

What is the difference between Personal Auto policies and Commercial Auto policies?

Personal Auto policies are for individuals while Commercial Auto policies are for businesses Signup and view all the answers

Which types of businesses are covered under Business Auto policies?

Businesses that have cars but are not in the business of cars Signup and view all the answers

What is the difference between Garage policies and Garage Keeper policies?

Garage policies are for businesses that sell, store, park, or repair cars while Garage Keeper policies are for businesses that keep a customer's car for service or repair Signup and view all the answers

Which types of businesses are covered under Trucker policies?

Businesses that move cargo Signup and view all the answers

What do symbols 21-31 represent in Commercial Auto policies?

Garage Signup and view all the answers

What is the purpose of Business Property Damage coverage in Commercial Auto policies?

To cover damage to owned vehicles Signup and view all the answers

What is Loss of Use coverage extension in Commercial Auto policies?

Coverage for rental car company's loss of income due to a rented vehicle being damaged and in the repair shop Signup and view all the answers

What are the different types of carriers under Motor Carrier policies?

Common carrier, contract carrier, and private carrier Signup and view all the answers

Study Notes

Lesson on Commercial Auto Policies for Businesses

Commercial Auto policies are for businesses that require auto insurance.
Personal Auto policies are separate from Commercial Auto policies, and the majority of exam questions will come from personal auto policies.
Personal Auto policies are better to know than Commercial Auto policies, but having a basic understanding of Commercial Auto policies is still useful.
There are four separate Commercial Auto policies depending on the type of company, unlike Personal Auto policies which are the same for everyone.
Truck and Motor Carrier policies may or may not be included in the exam depending on the state.
Business Auto policies are for businesses that have cars but are not in the business of cars, such as Chick-fil-A or Edible Arrangements.
Garage policies are for businesses that sell, store, park, or repair cars, such as car dealerships or car washes.
Garage Keeper policies are for businesses that keep a customer's car for service or repair, such as repair shops or some dealerships.
Trucker policies are for businesses that move cargo, whether owned or non-owned.
Motor Carrier policies are for businesses that provide transportation by auto for a commercial enterprise.
Commercial Auto policies are identified by symbols, with 1-19 representing Business Auto, 21-31 representing Garage, 30 representing Garage Keeper, 40-50 representing Trucker, and 61-69 representing Motor Carrier.
It is not necessary to memorize all the symbols, but having a basic understanding of what each symbol represents is helpful.Commercial Auto Insurance: Business Property Damage and Coverage Extensions
Commercial Auto is a tricky subject due to the extensive study material and the limited number of questions on the exam.
Business Auto and Garage are the most frequently asked about policies in Commercial Auto Insurance.
Business Auto and Garage policies have similar numbers, with only a difference in the 2 in front, signifying Garage instead of Business.
Business Property Damage can be added to any of the separate policies, like Business Auto, Garage, Truckers, and Motor Carrier.
Business Property Damage pays for the lesser of actual cash value or the cost to repair, not replacement costs for the car.
Business Property Damage has different categories, including Collision, Comprehensive, Specified Cause of Loss, Towing, and Glass Breakage.
Specified Cause of Loss has a specific list of perils, which are generally covered under Comprehensive in Personal Auto policies.
Transportation Expenses is a coverage extension that covers up to $20 a day for a maximum of $600 for theft only on Commercial Auto policies, with a 48-hour waiting period.
Loss of Use is another coverage extension that covers rental expenses for businesses renting cars, which cannot be rented out due to an employee's accident.
Loss of Use is similar to the concept of loss of use in Homeowners Insurance, where the insured cannot use their house and has to go to a hotel.
Personal Auto policies cover both theft and accident for Transportation Expenses, with a 48-hour waiting period for theft and a 24-hour waiting period for accident.
Understanding Personal Auto policies can help in understanding Commercial Auto policies, as they share some similarities in coverage and waiting periods.Business Auto vs. Garage Auto Insurance Policies
Business Auto and Garage Auto are the two main commercial auto insurance policies.
Business Auto and Garage Auto policies have different sections, but some are the same.
Section 1 of both policies is covered Auto, and the symbols vary based on the policy.
Section 2 of Business Auto is liability, which covers bodily injury and property damage, and can be split or combined single limit. Garage Auto separates property damage and bodily injury, but has a combined single limit.
Section 3 of Business Auto is physical damage, which covers damage to owned vehicles and needs to be added to the policy. Garage Auto has Garage Keeper coverage, which is for customer vehicles in the dealership's care, custody, or control, and also needs to be added.
Section 4 of Business Auto is conditions, which are the rules and duties for both the insurer and the customer. Garage Auto has physical damage coverage for dealerships, which requires reporting or non-reporting forms to keep the insurance company updated on inventory.
Non-dealerships are the same as Business Auto for physical damage coverage.
Loss of use and diminished value coverage extensions can be added to both policies.
Loss of use coverage covers the rental car company's loss of income due to a rented vehicle being damaged and in the repair shop.
Diminished value coverage covers the decrease in value of a vehicle after it has been damaged and repaired.
If the reporting form or stable value for inventory is incorrect for a dealership, then only portions of the loss will be covered by the insurance company.Commercial Auto Insurance Policy Overview
Commercial Auto policies are tailored based on the type of company that owns the vehicles.
Business Auto policy is for companies that have cars, symbolized by 1-19.
Garage Commercial Auto policy is for companies that sell, store, park, or repair cars, symbolized by 21-31.
Garage Keeper policy is for companies that keep customer's cars, symbolized by 30.
Trucker and Motor Carrier policies are for transporting goods in trucks, symbolized by 40-50 and 61-69 respectively.
Business Property Damage coverage can be added, covering collision or other damages.
Lesser of actual cash value or cost to repair is covered under the policy.
Coverage extensions include transportation expenses for theft, loss of use, and rental car damages.
Business Auto and Garage Auto policies have different sections for liability and physical damage coverage.
Garage Auto dealerships have reporting or non-reporting forms for inventory values, affecting the amount of loss paid.
Section 5 covers the rules and duties for the policy.
Motor Carrier definitions include common carrier, contract carrier, and private carrier.

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Description

Test your knowledge on Commercial Auto Insurance Policies with this quiz! Learn about the different types of policies for businesses that require auto insurance, such as Business Auto, Garage, Garage Keeper, Trucker, and Motor Carrier. Discover the coverage extensions available for each policy, including Business Property Damage, Transportation Expenses, Loss of Use, and Diminished Value. Explore the similarities and differences between Business Auto and Garage Auto policies, including their liability and physical damage coverage. This quiz is perfect for those seeking a better understanding