Commercial Auto Insurance Terms

Two forms of coverage for the driverless operations are available, the first being coverage for the named assured only (Owner Only), and the second being coverage for the named assured and the persons hiring the automobiles (Owner and Hirer). The earnings rates for these two forms of coverage for driverless operations are shown on the State Rate Sheets. Find general auto insurance quotes online.

The specified car rates for Public Liability and Property Damage for driverless operations shall be 75 % of the private livery premiums in the territory for coverage for Owner Only and 150% of the private livery premiums in the territory for coverage for Owner and Hirer, except that in those states where the driverless earnings rates are the same for Owner Only as for Owner and Hirer, the specified car rates shall be 150% of the private livery premiums regardless of the form of coverage provided.

The Public Liability and Property Damage premiums for a risk insured on the combination payroll and earnings basis shall be obtained by application of the garage payroll rates to the actual payroll for the risk and the application of the proper driverless earnings rates to the gross earnings for the renting of automobiles without drivers to others. The “gross earnings” shall be the total amount charged by the assured, whether collected or not, for the renting of private passenger automobiles to others without drivers.

The garage payroll policy shall be subject to the minimum premiums for a garage as shown on the State Rate Sheets without regard for the additional premiums and minimum premiums for the driverless operations. The advance premiums for driverless operations shall be based upon the estimated total earnings for the policy period. The earned premium shall be based upon the total earnings developed by audit. The minimum annual premiums for the driverless operations shall be 75 % of the specified car premium for each automobile insured, such minimum premium to be not less, in any event, than the specified car premiums for the three highest rated driverless cars owned by the assured at the inception of the policy.

The rates and minimum premiums shall be increased for excess limits coverage. For Public Liability excess limits on risks involving the renting of cars without drivers apply the percentages in Excess Limits Table I to the rates and minimum premiums for the garage payroll policy and apply the percentages contained in Excess Limits Table II to the rates and minimum premiums for coverage on the automobiles rented.


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