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Section I – Covered Autos Coverages

A B and C – Covered Autos Defined

Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered.

Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations and include your spouse, if you are an individual. The words "we", "us" and "our" refer to the company providing this insurance.

Other words and phrases that appear in quotation marks have special meaning. Refer to Section V Definitions.

In the introductory wording we find some definitions not included in Section V - Definitions that identify the parties to the contract of insurance. Wherever the word "you" appears in the policy, it refers to the person or organization named in the Declarations. If that person is an individual, that person's spouse is automatically included as a named insured.

Some conditions and exclusions affect only the named insured(s), the "you" of the policy. Parties included in the policy as insureds in the Who Is An Insured portion of each coverage section and additional insureds added by endorsement are not affected by these exclusions.

A. Description of Covered Auto Designated Symbols

Item Two of the Declarations shows the autos that are covered autos for each of your coverages. The following numerical symbols describe the autos that may be covered autos. The symbols entered next to a coverage on the Declarations designate the only autos that are covered autos.

A. Description of Covered Auto Designated Symbols

This introductory wording to the symbol definitions refers back to Item Two in the Declarations. The designation of a symbol next to a coverage triggers that coverage for particular types of vehicles based on ownership, use and type of auto.

Actual Policy Language

Explanation

21 = Any Auto.

21 This symbol should always be used for liability coverage if the company permits, and optionally for medical payments coverage. When used, no other symbol is necessary. Liability coverage applies to the named insured(s) for all owned autos (including autos in inventory, demonstrators, service vehicles) and any other autos out of which legal liability might arise (including customers' autos, rented autos, and autos owned by employees used in the garage business). The insured has automatic coverage for any newly acquired auto, without having to report the acquisition to the carrier.

The definition of “auto” includes any type of “land motor vehicle,” so this symbol applies to mobile equipment owned or used by the dealership. These exposures are excluded by Section II – General Liability Coverage.

22 = Owned Autos Only. Only those autos you own (and for Liability Coverage any trailers you don't own while attached to power units you own). This includes those autos you acquire ownership of after the policy begins.

22 This symbol can be used to provide coverage on all autos owned by the named insured(s). It can be used for liability, physical damage (except towing and labor) and medical payments. Liability coverage would also apply to any nonowned trailer while attached to an owned power unit. Coverage is automatic on any newly acquired auto without having to report the acquisition to the company.

23 = Owned Private Passenger Autos Only. Only the private passenger autos you own. This includes those private passenger autos you acquire ownership of after the policy begins.

23 This symbol limits coverage to private passenger autos owned by the named insured. It can be used for liability, medical payments and physical damage (including towing and labor), most often being used to differentiate physical damage coverages for private passenger autos and trucks. Automatic coverage is provided for newly acquired private passenger autos only. This symbol definition makes no provision for nonowned trailers as do Symbols 22 and Symbol 24, but this is addressed in Section I.C. (see below).

The fact that there is no definition of "private passenger auto" in the policy could cause an interpretation problem. It is defined in the auto manual and any question should be resolved with the most liberal interpretation in favor of the insured. 

24 = Owned Autos Other Than Private Passenger Autos Only. Only those autos you own that are not of the private passenger type (and for Liability Coverage any trailers you don't own while attached to power units you own). This includes those autos not of the private passenger type you acquire ownership of after the policy begins.

24 This symbol serves the same purpose as Symbol 23, but applies only to vehicles not considered private passenger. It can be used for liability, medical payments and physical damage (except towing and labor). Use of this symbol will also provide liability coverage for any nonowned trailer while attached to an owned power unit. Automatic coverage for newly acquired units is provided with no requirement for notification to the carrier.

25 = Owned Autos Subject To No-Fault. Only those autos you own that are required to have no-fault benefits in the state where they are licensed or principally garaged. This includes those autos you acquire ownership of after the policy begins provided they are required to have no-fault benefits in the state where they are licensed or principally garaged.

25 This symbol cannot be used for vehicles garaged in Texas. It is used in states where "no-fault" benefits are required by law.

26 = Owned Autos Subject To A Compulsory Uninsured Motorist Law. Only those autos you own that because of the law in the state where they are licensed or principally garaged are required to have and cannot reject Uninsured Motorists Coverage. This includes those autos you acquire ownership of after the policy begins provided they are subject to the same state uninsured motorists requirement.

26 This symbol cannot be used for vehicles garaged in Texas, since Uninsured Motorists coverage is not mandatory. Covered autos for UM/UIM coverage are designated on the coverage endorsement.

27 = Specifically Described Autos. Only those autos described in Item Nine of the Declarations for which a premium charge is shown (and for Liability Coverage any trailers you don't own while attached to a power unit described in Item Nine).

27 When this symbol is used for any coverage, only the vehicles described in the auto schedule are insured for the designated coverage.

Section I.B. (see below) applies liability coverage to newly acquired vehicles when this symbol is used.

Section I.C. (see below) applies liability coverage to small owned trailers when this symbol is used.

This symbol can be used for liability, medical payments and physical damage.

The definition of “auto” includes any type of “land motor vehicle,” so the auto liability coverage applies to mobile equipment owned or used by the dealership. If Symbol 27 is used for liability coverage, individual items of mobile equipment must be scheduled on the policy. Mobile equipment exposures are excluded by Section II – General Liability Coverage.

28 = Hired Autos Only. Only those autos you lease, hire, rent or borrow. This does not include any auto you lease, hire, rent or borrow from any of your employees, partners (if you are a partnership), members (if you are a limited liability company) or members of their households.

28 This symbol affords coverage for autos the insured hires or borrows, except such autos owned by employees, partners of a partnership, members of a limited liability company, or members of their households. Most frequently, Symbol 28 will be used for liability in combination with Symbols 22, 23, 24, 27 or 29.

Symbol 28 can also be used to provide physical damage coverage on hired autos, such as rental vehicles. 

29 = Non-Owned Autos Used In Your Auto Dealership. Any auto you do not own, lease, hire, rent or borrow used in connection with your auto dealership described in the Declarations. This includes autos owned by your employees or partners (if you are a partnership), members (if you are a limited liability company), or members of their households while used in your auto dealership.

29 This symbol is used only for liability coverage on autos used in the named insured's dealership business which are not owned by the named insured and do not fall under the definition of hired auto. This specifically includes autos owned by employees, partners, and members of their households, even if some formal leasing arrangement is used for these autos. It also includes customers' autos.

The non-owned auto must be used in connection with the dealership business described in the Declarations. This is a key distinction from the BAP where the limitation applies to autos used in "your business" rather than any particular business described in the Declarations. In addition, the BAP applies to non-owned autos used in an individual named insured's personal affairs. Endorsement CA 99 54 (Coverage Auto Designation Symbol) can be used to close this gap by defining non-owned autos in the same way as they are described in Symbol 9 of the BAP.

There is no charge for this coverage and therefore this symbol should always be shown in the liability section on the declarations of a policy unless Symbol 21 is used.

30 = Autos Left With You For Service, Repair, Storage Or Safekeeping. Any land motor vehicle or trailer or semitrailer lawfully within your possession for service, repair, storage or safekeeping, with or without the vehicle owner’s knowledge or consent. This also includes autos left in your care by your employees and members of their households who pay for the services performed.

30 This symbol is generally used exclusively for garagekeepers coverage, although it could be used for liability in conjunction with Symbol 29 to clearly cover the operation of customers’ autos.

31 = Auto Dealers Autos (Physical Damage Coverages). Any autos and the interests in these autos described in Item Six of the Declarations.

31 This symbol is used only where "blanket" physical damage coverage is desired, subject to the limitations described in Item Six of the Declarations.

It is permissible to use additional symbols which may be defined on endorsement, as may be agreed upon by the insured and the insurer.  Endorsement CA 99 54 (Covered Auto Designation Symbol) can be used for this purpose.

Some uses of special symbols might include: 

  • Excluding a particular vehicle or subclass of vehicles.
  • Providing different physical damage coverage on subclasses of vehicles (comprehensive on pickups and specified causes of loss on other trucks).
  • Excluding vehicles operating outside a given territory.
  • Providing automatic coverage for newly acquired vehicles exceeding a given value or model year.
  • Re-defining non-owned autos (see Symbol 29 above).

B.  Owned Autos You Acquire After The Policy Begins 

B. Newly Acquired Autos

This section describes how some newly acquired vehicles are automatically covered.

1. If Symbols 21, 22, 23, 24, 25 or 26 are entered next to a coverage in Item Two of the Declarations, then you have coverage for "autos" that you acquire of the type described for the remainder of the policy period. 

1. The use of any owned auto symbol except Symbol 27 provides very liberal application of coverage for newly acquired autos. Any new auto of the type described by the symbol will automatically have the same coverage from the date of acquisition to the expiration of the policy, with no requirement to notify the company.

The company may audit the insured's records upon expiration and charge the appropriate additional premium from the date of acquisition. Before using a symbol which provides such broad automatic coverage, it is important for the insured to understand this and be prepared to pay the additional premium.

2. But, if Symbol 27 is entered next to a coverage in Item Two of the Declarations, an "auto" you acquire will be a covered "auto" for that coverage only if:

a. We already cover all "autos" that you own for that coverage or it replaces an "auto" you previously owned that had that coverage; and

b. You tell us within 30 days after you acquire it that you want us to cover it for that coverage. 

2. When Symbol 27 is used, very limited automatic coverage is provided for newly acquired autos. There is a distinction here between an additional auto and an auto replacing another, and in either case the insurance company must be notified within 30 days of the acquisition or coverage will cease.

An additional auto will have automatic coverage when all owned autos are provided a particular coverage to which Symbol 27 applies.

For example, if Symbol 27 is shown in the Declarations for liability coverage and all autos owned by the insured are covered on the policy for liability (i.e., scheduled with the appropriate premium charge) then liability coverage is automatic for any new auto. If one or more owned autos are not covered, or if coverage on owned autos is split between two or more companies, an additional auto will have no coverage at all when it is acquired.
If the newly acquired auto replaces an auto already covered on the policy, then the same coverage applies to the replacement.

C.  Certain Trailers And Temporary Substitute Autos

If Covered Autos Liability Coverage is provided by this Coverage Form, the following types of vehicles are also covered "autos" for Covered Autos Liability Coverage: 

C. Certain Trailers and Temporary Substitute Autos

This section applies automatic coverage to certain vehicles and applies only to the liability coverage provided by the policy. 

1. "Trailers" with a load capacity of 2,000 pounds or less designed primarily for travel on public roads. 

1. Even if such trailers are scheduled on the policy, there is no premium charge per manual rule.

2. Any "auto" you do not own while used with the permission of its owner as a temporary substitute for a covered "auto" you own that is out of service because of its:

a. Breakdown;

b. Repair;

c. Servicing;


d. "Loss"; or

e. Destruction. 

2. This provision would be useful only when one of the owned auto symbols (Symbols 22, 23, 24, or 27) is being used. This would extend coverage to a nonowned auto automatically when such auto is a temporary substitute.