Insurance Terms 101: Basic Commercial Auto Insurance Terminology You Need to Know

You need to understand commercial auto insurance terms as a business owner that uses vehicles for your business operations.

While there are similarities between commercial auto insurance and personal auto insurance, this type of insurance covers vehicles used by a business.

Need help understanding your commercial auto insurance policy? Contact our team today.

Basic Commercial Auto Insurance Terms

Insurance jargon is complicated. However, this is why we’re here to help.

Take a look at the most important commercial auto insurance terms used by our agents every day:

  • Bobtail coverage: This coverage protects a tractor when it is operated without a trailer.
  • Garagekeepers legal liability insurance: If you have a towing or auto repair business, this insurance is just for you. This insurance will protect other people’s vehicles while in your care custody and control.
  • Non-trucking liability coverage: This type of insurance pays for judgements against you for medical and associated expenses for injuries that you cause to other people or damage to their property.
  • Non-owned vehicle liability insurance: This insurance extends coverage provided under the Bodily Injury Liability and Property Damage Liability coverage by covering any vehicles not owned by you or your business.
  • On-hook towing coverage: This type of coverage provides physical damage coverage for a customer’s vehicle while you are towing it.
  • Property damage liability coverage: This coverage helps insured people if they are legally liable for an accident. This will pay for damage to another person’s property and will pay for legal defense costs if you’re sued.

Need help understanding your commercial auto insurance policy? Contact our team today.

Need More Help Understanding Insurance Terms? Contact Us Today

Now that you understand the most important terms and definitions, find out what’s covered under a commercial auto insurance policy and get a quote from our team today!

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