Does an unlisted driver or out-of-date driver list void coverage under a commercial auto policy?
While delays in adding a new driver may occur, we recommend adding any new driver to the policy as soon as possible. We consider a driver to be anyone who drives an insured auto four or more times a month, or an owner, partner employee or driver who has a Commercial Driver's License. If a covered loss involves a driver who is not listed on the policy, insurance companies will conduct an investigation to confirm there was no intentional misrepresentation or fraud. Additionally, the driver will be added to the policy, unless the customer requests driver exclusion (if permitted) or can provide proof of termination.
Does my car have coverage if a temporary vehicle is not listed on my commercial auto policy?
Many Insurance companies offer policyholders extended coverages for many different situations.
Hired Auto Coverage provides excess liability for a non-owned, unlisted vehicle the insured has leased, hired, rented or borrowed.
Employers Non-ownership Coverage provides excess liability coverage protecting insureds when employees use their own (unlisted) vehicle for incidental use in the course of business for the Named Insured.
Refer to your state-specific product guide for complete rules and guidelines.
What are the benefits of using Stated Amount for determining physical damage coverage instead of cost new?
The Stated Amount on an Insurance policy is a vehicle’s current retail value including any special or permanently attached equipment. Using Stated Amount provides a superior value by allowing our policyholders to customize their policy to accurately capture their vehicles' true value.
Unlike personal auto, the commercial auto market is very dynamic. Commercial vehicle values are influenced by a variety of factors:
regulations on equipment standards
seasonality of work and demand
regional valuation differences
large fleet purchases creating a surplus of used equipment
plus a multitude of other local factors
By actively monitoring the market value of commercial vehicles, you can be assured that you have selected the right level of coverage and your customers being charged the appropriate premium.
How do I determine a proper Stated Amount for a vehicle?
The easiest way to establish a Stated Amount is to consult a book publication. Other possibilities include consulting with a dealer/manufacturer or checking Internet sites. When determining Stated Amount, remember to take condition, mileage, and location into consideration. Also consider any vehicle upgrades, engine or major component rebuilds that could further increase a vehicle’s value. Possible resources include*:
Valuation Publications & Internet Sites -- Truck Blue Book, truckpaper.com, trucks.com
Manufacturers -- What is the special or permanently attached equipment worth?
Lending/Financial Institutions -- What is the current Blue Book value of the vehicle?
Market-Value Software -- N.A.D.A. (possible fee involved for the software).
The Stated Amount listed on a policy is NOT an agreed value and is subject to review upon servicing a claim.
Is non-trucking liability the same as bobtail insurance?
Although people often use these terms interchangeably, technically they are not the same coverage. Non-trucking liability only applies when an insured under permanent lease to a motor carrier is using his/her commercial vehicle for personal, non-business use.
Bobtail insurance covers a tractor when it's being operated without a trailer, whether or not it's under dispatch.
Some motor carriers prefer their owner-operators to have bobtail insurance because the coverage is broader, thus often limiting the carrier's own exposure. But in reality, true bobtail insurance is not widely available and is quite costly. As a general rule, most permanently leased owner-operators only need to carry non-trucking liability.