GMI - The Logical Choice
For All Your Commercial Auto Insurance Needs

Expert Insight to Help You Get the Best Commercial Auto Quotes
And Keep You Out of the Deep Weeds

1. There are only 3 uses on a commercial auto policy for vehicles other than PPT's - Private passenger vehicles - they are in order from least expensive to most expensive 1) Service, Commercial and Retail. Most companies use the "Service" classification for contractors vehicles that make 3 or less stops in a day - in other words the vehicle is parked at the jobsite the majority of the day. The "retail" classification Is used for vehicles that make pickup and deliveries from individual households. One of the big issues for the retail exposure is the problem with loading and unloading - both of which are covered under the business auto policy. Many retail clients run into a claim frequency problem - they have a number of small claims due to this loading and unloading exposure - as such a small property damage deductible could resolve this problem as the insured would have "skin in the game" and the underwriter will be re-assured that the claims frequency problem could be resolved. The "Commercial" rating exposure is for every type of risk.
   
   
2. Make sure you get the radius correct. Local radius is 50 miles or less B) Intermediate use is 50 miles and up to 200 miles C) Long Distance is 200 or more miles one way.
   
   
3. Don't Guess at the Gross Vehicle Weight (GVW). GVW is the maximum loaded weight for a single auto is designed as specified by the manufacturer. A) Light trucks are - trucks that have a GVW of 10,000 lbs. or less. Many pickups and vans will fit into this category - pickups of a ½ ton or ¾ ton pickup for example would be in this class. B) Medium trucks - trucks that have a GVW of 10,001 to 20,000 lbs. Crawler type trucks fit in this class as do 1-ton or 1 ½ ton vehicles. C) Heavy trucks - trucks that have a 20,001 to 45,000 pounds. 2 to 3 ton vehicles fit into this class as do a number of box trucks. D) Extra heavy trucks - Trucks that have a GVW over 45,000 pounds. Sand and Gravel Dump Trucks fit into this category.
   
   
4. Check the classifications. If you are writing contractors, you should have a service rated vehicle on there - also be specific as to exactly what type of contractor the insured is as many of our companies have filed deviations off specific types of contractors.
   
   
5. Check the garaging location of each vehicle. It doesn't matter the mailing address - the business auto policy is underwritten by the garaging location of each vehicle - in other words where the vehicle is parked overnight. So if drivers take the vehicles home - the correct rating would be on the individual drivers home address and not the address of the business. As a general rule, the higher the population of a rating territory the higher the auto insurance rate. Insureds whose offices or yards are in highly populated areas, but who do work in outlying suburbs, should consider garaging them in the outlying area if convenient. The difference in both the liability premium and physical damage can be very significant.
   
   
6. Older field vehicles are sometimes taken out of service and used for purposes other than those for which they were originally intended, such as hauling around the yard. Some underwriters may be willing to credit this vehicle for its reduced exposure.
   
   
7. Review all the driver's MVR's. The underwriter will look at the whole risk, but make sure that "one bad apple is not ruining the bunch" - one or two bad drivers can dramatically influence the pricing and loss experience of an entire risk.
8. Find out from your client what the highest deductible that they can comfortably afford for physical damage is. There can be a significant rate reduction for increased deductibles.
   
   
9. Specify the exact nature of your client's business. For example, if they are a snack food distributor tell us not only that - find out whom they are a distributor for - as we may be able to discount the risk as some of our companies have specific programs for these types of risks - same holds true for residential contractors - bottom line - the more information the better.
   
   
10. Whatever limits of liability your client wants - get a quote on those limits and increased limits as well. By presenting not only the requested limits but by having the client sign off on the higher limits you have taken away a huge E&O exposure and providing yourself a strong defense. All too often, clients will go into court with say the $300,000 CSL policy they requested and due to the horrific nature of the loss are facing a verdict in excess of their policy. One strategy is that they will assert that for the nominal difference in price -- they would have of course chosen the higher limits - if they had known. In E&O - not only is the best defense a good offense - but "he who documents best - wins…".
    
    
11. Underwriters don't like surprises - they are looking at pieces of paper - it is always best to discuss a risk with the underwriter so that everybody knows exactly what the risk is. An wise insurance agent said that he enjoyed a stress free career because he never "let the sweet scent of the commission override the stench of the risk". If a risk smells to you like rotten fish - tell us your thoughts, just as you would on any other type of risk. We are partners and full disclosure and trust rule all our dealings.