Commericial Auto Insurance – Cheap Hired Auto Coverage

If a risk involves five or more commercial or public automobiles owned by one assured, a policy may be issued to cover Public Liability, Property Damage and Collision insurance for all commercial automobiles and trailers and /or all public automobiles owned by the assured during the policy term.

The premium for Public Liability, Property Damage and Collision insurance shall be calculated with regard to the average number of chauffeurs and other operators of automobiles employed by the assured during the policy term as determined from the payroll expended for such chauffeurs and other operators, and with regard also to the number of automobiles owned by the assured in excess of the number of chauffeurs. The advance premium and the earned premium shall be calculated in accordance with the method set forth in the endorsement shown below.

If at any location or in any commercial classification the automobiles are of various load capacities, the rate to be applied in the calculation of the advance premium shall be the average rate for the two or three load capacity groups involved, which shall be determined by first multiplying the number of cars in each load capacity group by the rates for the respective groups, then adding the results and finally dividing by the total number of cars for that particular location and classification. If there are busses of various seating capacities at any location, the average bus rate shall be calculated in similar fashion. Should the number of cars in the different load capacity groups for commercial cars or in the different seating capacity groups for busses change during the policy period, a new average rate shall be computed for ihe calculation bf the earned premium.

The minimum annual premium for the policy shall be the premium for the five highest rated automobiles owned by the assured at the inception of the policy.


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