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The following is a list of towing insurance definitions that will help you understand your policy.
General Liability/Garage & Garage Keepers Liability
General Liability Supplement is written to provide you with coverage for non-auto related activities or business in which you might be involved. This is important because your standard garage policy is not designed to insure such incidental exposures or non-dealer exposures.
Garage Liability is used to insure against liability claims arising out of your garage/dealer operations including the use of automobiles. Coverage also applies to your products or completed operations exposures subject to a deductible per claim.
Garage Keepers Liability is used to insure against claims arising out of damage to vehicles owned by others which are left with you for storage, service, safekeeping or repair - in your care, custody, or control.
Bodily Injury Liability covers you in the event that you cause an accident that hurts someone else. Your bodily injury liability insurance covers the medical costs of physical injury incurred by passengers in your truck and other vehicles after an accident for which you are responsible. It also covers the legal costs that you may incur when you cause an accident. Most states require at least a minimal amount of coverage, though some states don't. Check out what your medical insurance covers and how much it covers, as well as the details of other plans that you already own, to assist in your decision on limits of insurance.
Property Damage Liability pays for damages to the car and possessions of the other party in an accident that is your fault. This includes not only the labor and parts costs associated with the car repair, but also replacement for valuables inside the car that were destroyed or even for repairs to stationary objects you may hit.
Hired Auto Liability is coverage for a truck whose exclusive use and control has been temporarily given to another for a consideration. This includes all autos borrowed except those borrowed from employees or partners.
Non-Owned Auto is an auto that is used in connection with your business but that is not owned, leased, hired, rented, nor borrowed by your company. This term specifically applies to vehicles owned by employees and used for company business.
Uninsured Motorist Coverage pays for medical care for you and your passengers up to the limit of the policy. Accidents involving bikes and pedestrians may also be covered. Your state may also allow Uninsured Motorist Property Damage which may have a separate limit and covers the cost to your truck in the event that you are hit by another driver who doesn't have auto insurance.
Personal Injury Protection (PIP) is an extension of car insurance available in some U.S. states that covers medical expenses and, in some cases, lost wages and other damages. PIP is sometimes referred to as "no-fault" coverage, because the statutes enacting it are generally known as no-fault laws, and PIP is designed to be paid without regard to "fault," or more properly, legal liability. PIP is also called "no-fault" because, by definition, a claimant's, or insured's, insurance premium should not increase due to a PIP claim.
Medical Payments will pay for the medical expenses you and your passengers incur in a car accident whether or not it was your fault. This is similar to Personal Injury Protection and is often purchased in place of no-fault insurance. It also covers the medical costs of pedestrians that you may injure. It does not cover any property damages that occurred in the accident for either party.
Combined Single Limit provides one single limit for all combined claims per occurrence. For example, $1,000,000 single limit coverage would provide coverage for any combination of bodily injury and/or property damage up to a maximum of $1,000,000 per occurrence.
Split Liability Limits provides separate limits of coverage for bodily injury and property damage. For example, $250,000/$500,000/$100,000 would provide up to a maximum of $250,000 bodily injury coverage per person, up to a maximum of $500,000 for all bodily injury claims per accident, and a maximum of $100,000 for all property damage claims per accident.
Auto Physical Damage
Deductible is the portion of the covered loss that is not paid by the insurer. In property insurance, the deductible is usually subtracted from the amount of the loss. In liability insurance, it is usually subtracted from the policy limit and is reimbursed to the insurance company.
Comprehensive Coverage under the physical damage portion of the policy insures against loss or damage to the vehicle resulting from any cause, except those specifically precluded. It covers losses such as fire, theft, windstorm, flood, and vandalism, but not loss by collision or upset.
Collision Coverage provides for reimbursement for loss to a covered vehicle due to its colliding with another vehicle or object or the overturn of the truck. This covers only damage to the truck itself as it is defined in the policy.
Value of Vehicle
Stated Amount is the value that you place on your truck and provide to your agent. If you sold your truck today, the stated amount is the price you would ask the buyer to pay.
Actual Cash Value (ACV) describes what it will cost to replace your truck at the time of loss after subtracting depreciation.
On-Hook/Cargo Coverage
On-Hook (in tow) Coverage is used to protect you against claims arising from property damage to vehicles of others while being towed by you, up to the limits specified in the policy form.
Cargo Coverage protects the transporter for his responsibility in the event of a damaged or lost vehicle. This policy is purchased with a maximum load limit per vehicle.
General Liability/Garage & Garage Keepers Liability
General Liability Supplement is written to provide you with coverage for non-auto related activities or business in which you might be involved. This is important because your standard garage policy is not designed to insure such incidental exposures or non-dealer exposures.
Garage Liability is used to insure against liability claims arising out of your garage/dealer operations including the use of automobiles. Coverage also applies to your products or completed operations exposures subject to a deductible per claim.
Garage Keepers Liability is used to insure against claims arising out of damage to vehicles owned by others which are left with you for storage, service, safekeeping or repair - in your care, custody, or control.
The 3 forms of Garage Keepers coverage are as follows:
Auto Liability- Legal provides coverage for damage that you're legally liable for, when you're at fault.
- Direct Excess coverage applies in excess of the vehicle owner's coverage.
- Direct Primary coverage is where the garage insured would share the loss with the auto owner's insurer.
Bodily Injury Liability covers you in the event that you cause an accident that hurts someone else. Your bodily injury liability insurance covers the medical costs of physical injury incurred by passengers in your truck and other vehicles after an accident for which you are responsible. It also covers the legal costs that you may incur when you cause an accident. Most states require at least a minimal amount of coverage, though some states don't. Check out what your medical insurance covers and how much it covers, as well as the details of other plans that you already own, to assist in your decision on limits of insurance.
Property Damage Liability pays for damages to the car and possessions of the other party in an accident that is your fault. This includes not only the labor and parts costs associated with the car repair, but also replacement for valuables inside the car that were destroyed or even for repairs to stationary objects you may hit.
Hired Auto Liability is coverage for a truck whose exclusive use and control has been temporarily given to another for a consideration. This includes all autos borrowed except those borrowed from employees or partners.
Non-Owned Auto is an auto that is used in connection with your business but that is not owned, leased, hired, rented, nor borrowed by your company. This term specifically applies to vehicles owned by employees and used for company business.
Uninsured Motorist Coverage pays for medical care for you and your passengers up to the limit of the policy. Accidents involving bikes and pedestrians may also be covered. Your state may also allow Uninsured Motorist Property Damage which may have a separate limit and covers the cost to your truck in the event that you are hit by another driver who doesn't have auto insurance.
Personal Injury Protection (PIP) is an extension of car insurance available in some U.S. states that covers medical expenses and, in some cases, lost wages and other damages. PIP is sometimes referred to as "no-fault" coverage, because the statutes enacting it are generally known as no-fault laws, and PIP is designed to be paid without regard to "fault," or more properly, legal liability. PIP is also called "no-fault" because, by definition, a claimant's, or insured's, insurance premium should not increase due to a PIP claim.
Medical Payments will pay for the medical expenses you and your passengers incur in a car accident whether or not it was your fault. This is similar to Personal Injury Protection and is often purchased in place of no-fault insurance. It also covers the medical costs of pedestrians that you may injure. It does not cover any property damages that occurred in the accident for either party.
Combined Single Limit provides one single limit for all combined claims per occurrence. For example, $1,000,000 single limit coverage would provide coverage for any combination of bodily injury and/or property damage up to a maximum of $1,000,000 per occurrence.
Split Liability Limits provides separate limits of coverage for bodily injury and property damage. For example, $250,000/$500,000/$100,000 would provide up to a maximum of $250,000 bodily injury coverage per person, up to a maximum of $500,000 for all bodily injury claims per accident, and a maximum of $100,000 for all property damage claims per accident.
Auto Physical Damage
Deductible is the portion of the covered loss that is not paid by the insurer. In property insurance, the deductible is usually subtracted from the amount of the loss. In liability insurance, it is usually subtracted from the policy limit and is reimbursed to the insurance company.
Comprehensive Coverage under the physical damage portion of the policy insures against loss or damage to the vehicle resulting from any cause, except those specifically precluded. It covers losses such as fire, theft, windstorm, flood, and vandalism, but not loss by collision or upset.
Collision Coverage provides for reimbursement for loss to a covered vehicle due to its colliding with another vehicle or object or the overturn of the truck. This covers only damage to the truck itself as it is defined in the policy.
Value of Vehicle
Stated Amount is the value that you place on your truck and provide to your agent. If you sold your truck today, the stated amount is the price you would ask the buyer to pay.
Actual Cash Value (ACV) describes what it will cost to replace your truck at the time of loss after subtracting depreciation.
On-Hook/Cargo Coverage
On-Hook (in tow) Coverage is used to protect you against claims arising from property damage to vehicles of others while being towed by you, up to the limits specified in the policy form.
Cargo Coverage protects the transporter for his responsibility in the event of a damaged or lost vehicle. This policy is purchased with a maximum load limit per vehicle.
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