Commercial Auto Insurance Coverage Symbols

Commercial auto policies specify the extent of coverage provided by using symbols to indicate the breadth of the protection.

The declarations page of your auto policy outlines coverage areas (liability, uninsured motorist, medical payments, etc.) with coverage symbols that apply to the type of insurance. The applicable symbols are numbers 1 through 9.

Symbol "1" is the broadest - "any auto". Symbol "9" provides coverage for non-owned vehicles only. Using symbol "7" reduces the coverage to claims from vehicles listed on the policy only. Insurers sometimes use combination of symbols - 8 and 9, for example, to provide coverage for hired and non-owned autos.

Symbol 1 in the liability section would provide coverage for any auto liability claim brought against an insured. Symbol 7 in the liability section would limit liability coverage to claims that come from a vehicle listed on the policy - significantly restricting the coverage.

Public Bid Openings

I've been working on more than my share of bid projects for schools and municipalities lately. Every time I receive bids I confirm my idea that public bid openings are not a good idea.

Inevitably there are issues that need to be addressed and alternative quotes that are needed to perform an accurate analysis. If I had provided the bid info at a public bid opening I would not be able to get the info I need in a fair manner.

Public bid openings may be good for road projects and buying pencils. Not in buying insurance though.

Scott Simmonds, CPCU, ARM, CMC
"The Guy With the Big Insurance Brain"
Providing Unbiased Insurance Assurance℠

Credit card insurance coverage for rental cars

As usual, last time I rented a car, in Michigan, the rental car agent explained that I should purchase the exorbitantly priced property damage insurance because 1) Michigan is a fully no-fault state and 2) liability for damage to the car would include rental costs while the car was being repaired. Despite having posted on this very topic, I had no idea whether I would be fully covered by my insurance for property damage if I was in a collision.

Shortly after that I received a benefits guide from one of my credit cards and I took a close look at its rental insurance coverage. It covers vehicles rented for 31 days or less with a value of $50,000 or less. There is no coverage unless you decline the Collision/Damage waiver offered.

And, yes, it covers "reasonable loss-of-use charges imposed by the vehicle rental company for the period of time that the rental vehicle is out of service."

So next time I rent a car I'll refuse the property damage insurance with confidence--that is, if I can remember which credit card I should be using.

Save the date: Massachusetts Reinsurance Bar Association Symposium

I mentioned here the formation of the Massachusetts Reinsurance Bar Association. MReba has now scheduled its first symposium for October 1, 2009 at the Harvard Club Back Bay on Commonwealth Avenue in Boston.