Automobile Policy

The personal auto policy is designed to cover mainly private passenger autos and trucks or vans weighing less than 10,000 pounds. In addition to automobiles, liability coverage is available for trailers or nonowned golf carts. Otherwise, there is no mention of other vehicle types in the policy, and they are not covered by the definition of “your covered auto.” The definition of “your covered auto” includes vehicles shown in the declarations, “newly acquired autos”, owned “trailers”, or any auto or “trailer” not owned by the insured but used as a temporary substitute for a vehicle out of normal use because of breakdown, repair, servicing, loss or destruction. “Newly acquired autos” is further described as a private passenger auto, a pickup or van with no other insurance that has a gross vehicle weight of 10,000 pounds or less and is not used for delivery or transportation of goods unless such use is incidental to the insured’s business of installing, maintaining or repairing furnishings or equipment, or for farming or ranching. “Trailers” are defined as a vehicle designed to be pulled by a private passenger auto, pickup, or van. It also includes a farm wagon or implement while towed by a passenger auto, pickup, or van. 

Vehicles with fewer than four wheels or that are designed for use off public roads are excluded from liability coverage. Physical damage coverage applies to “your covered auto” or “non-owned autos”. “Non-owned autos” are defined as a private passenger auto, pickup, van or “trailer” not owned by or furnished or available for regular use to the insured or a family member; or any auto or “trailer” not owned by the insured but that the insured is using as a temporary substitute for “your covered auto” which is out of use because of its breakdown, repair, servicing, loss, or destruction. 

So the auto policy is designed for private passenger autos, pickups, or vans below 10,000 pound gross vehicle weight. Vehicles with fewer than four wheels or that are not private passenger autos, pickups, or vans are not covered. Fortunately, there are some endorsements that provide coverage for other vehicles. 

Miscellaneous Type Vehicle Endorsement PP 03 23

The Miscellaneous Type Vehicle Endorsement PP 03 23 provides coverage for certain types of vehicles. “Miscellaneous type vehicles” are defined as motor homes, motorcycles, or similar vehicles, all-terrain vehicles, dune buggies or golf carts. This endorsement provides liability, medical payments, uninsured motorists, collision, and comprehensive coverage for miscellaneous vehicles. 

The vehicles must be scheduled on the form with a description and type of the vehicle, and the desired coverages must be shown. The policy definition of “your covered auto” is modified to include “miscellaneous type vehicles” shown in the declarations, as well as “newly acquired autos” and “trailers”. 

Vehicles with fewer than four wheels or that are designed for use off public roads are excluded from liability, and vehicles with fewer than four wheels are also excluded from medical payments unless it is scheduled on the endorsement. 

The physical damage exclusions are modified and the exclusion for motor homes and facilities or equipment used with motor homes is removed. Exclusions for clothing, luggage, business or office equipment, or articles which are sales samples or used in exhibitions are added. The endorsement also excludes electronic equipment that reproduces, receives or transmits audio, visual or data signals; tapes, records, discs and other media used with the excluded electronic equipment; equipment designed to detect radar or laser equipment, or “custom equipment” in or upon the covered auto. These are exclusions 4, 5, 9 and 10 in the auto policy physical damage section.  

Snowmobile Endorsement PP 03 20

A separate endorsement has been designed for snowmobiles. This endorsement provides liability, medical payments, physical damage, and uninsured motorists coverage for the scheduled snowmobiles. The vehicles must be described on the schedule and desired coverages indicated. “Snowmobiles” are defined as a land motor vehicle which is designed for use mainly off public roads on snow and ice and are propelled solely by wheels, crawler treads, belts, or similar mechanical devices. Included in that definition is a “trailer” designed for being towed by but not transporting a snowmobile. This would be a trailer attached to the snowmobile to carry various items, and not the trailer used to take the snowmobile to where the insured was going to ride. “Snowmobile” does not include any vehicles propelled by airplane type propellers or fans. 

The form replaces the terms “auto”, “motor vehicle” and “vehicle” with the term “snowmobile” except for UM coverage. The term “uninsured motor vehicle” includes “snowmobile” for UM coverage. “Your covered auto” is replaced with the term “your covered snowmobile”, and means any “snowmobile” shown in the declarations or “snowbmobiles” on the date you become the owner as long as the snowmobile is acquired during the policy period and the insured asks the insurer to provide coverage with 14 days of becoming the owner of the vehicle. 

Low Speed Vehicle Endorsement PP 13 16

 A “Low speed vehicle” is defined in the endorsement as a four-wheeled motor vehicle other than a truck, whose top speed is more than 20 miles per hour but no more than 25 miles per hour on paved surfaces. The manual defines it further, stating that a low speed vehicle is one designed for use on public roads with the same speeds listed in the endorsement and that complies with the safety standards in NHTSA regulation 49 C.F.R. 571.500. These safety requirements include headlamps, front and rear turn signals, taillamps, stop lamps, reflex reflectors, exterior driver’s and passenger’s side mirrors, parking brake, windshield, VIN number, seat belt, and an alert sound. 

The low speed vehicle endorsement requires the vehicle to be listed in the schedule including its description and the type of vehicle. Desired coverages are then to be shown with the respective liability limits. Once “low speed vehicle” is defined, the endorsement then modifies the definition of “your covered auto” to include any “low speed vehicle” shown in the schedule or the declarations. Also included are “newly acquired auto” or “trailers”, as well as “low speed vehicles” not owned by the insured and used as a temporary substitute when the insured vehicle is out of normal use due to repair, breakdown, servicing, loss, or destruction. The definition of “newly acquired auto” is modified to include any “low speed vehicle”. 

The definition of “insured’ is modified to remove mention of trailers other than “your covered auto” that might be used by another person, as trailers are included in the definition of “low speed vehicle” so that clause is no longer needed.

Exclusion B.1. of the liability section is significantly revised. It states that no coverage is provided for any vehicle designed mainly for use off public roads. There is an exception if the vehicle is being used in a medical emergency, or is a “trailer” or for a vehicle insured under the endorsement. 

The definition of “non-owned auto” is modified to include any “low speed vehicle” not owned by the insured but which is being used as a temporary substitute for the covered vehicle which is out of normal use due to breakdown, repair, servicing, loss, or destruction. 

Trailer/Camper Body Coverage (Maximum Limit of Liability) PP 03 07

Trailers are unique vehicles in that they are not self-propelled. They must be towed behind a private passenger auto, pickup, van, or motorcycle. Camper bodies designed for use with a pickup are included in this endorsement. The manual makes it clear that liability and medical payments coverage are provided for these vehicles without charge on the auto policy. However, coverage is not provided if the equipment is used for business purposes with other than a private passenger auto or owned pickup or van, or if the insured does not own an auto. Medical payments coverage is not provided if the trailer or camper body is used as a residence or premises. 

While liability coverage is automatic, physical damage coverage is not, and that is what this endorsement provides. The vehicle must be described on the endorsement, and the coverages desired must be shown with limits and deductibles. The policy specifically states that coverage is not on an agreed value basis. 

The definition of “your covered auto” is modified to mean a “trailer” or camper body. Exclusion 7. of the physical damage section of the policy that excludes loss to trailers, campers or motor homes is removed. The endorsement then states that coverage for direct and accidental loss is provided for “trailers” or camper bodies described in the schedule or declarations, as well as facilities or equipment designed to be used with the trailers or camper bodies while in or attached to the equipment. Covered facilities or equipment include, but are not limited to, cooking, dining, plumbing, refrigeration equipment; cabanas or awnings; or any other facilities or equipment to be designed to be used with a “trailer” or camper body. 

In order for collision and other than collision coverage to be provided, such coverage must be listed in the schedule or the declarations. If it is not listed, then there is no coverage. 
Certain exclusions are added. There is no coverage for clothing or luggage, business or office equipment, or articles which are sales samples or used in exhibitions. Likewise, furnishings or equipment that are excluded under 4., 5., 9., or 10 of the Part D exclusions are also excluded here. These exclusions are for electronic equipment that reproduces, receives or transmits audio, visual or data signals; tapes, records, discs used with such equipment; radar or laser detection equipment; and “custom equipment” in the vehicle beyond $1,500. 

Miscellaneous Type Vehicle Amendment (Motor Homes) PP 03 28

Motor homes are a little different than the vehicles we’ve discussed so far. They’re much bigger than golf carts, ATVS, snowmobiles, and low power vehicles. While motor homes may be scheduled on the Miscellaneous Type Vehicle Endorsement PP 03 23, this endorsement is for motor homes only. The vehicle in question must be listed and described on the endorsement, and the desired coverages must be scheduled as well. The form makes it clear that if the vehicle is rented or leased to an organization or any person other than the insured, no liability, medical payments or physical damage coverage is provided. However, coverage for the vehicle while rented to an organization or another person may be added by listing it on the schedule. If it is indicated on the schedule, then the insured can rent the vehicle to others and maintain coverage. 

If another person or organization fraudulently acquires the motor home from the insured and the vehicle is damaged while in that person or organization’s care, there is no coverage. What makes a vehicle fraudulently acquired is not defined, leaving it open to interpretation. If a party states they want to rent the vehicle to go camping with the youth group for a weekend and they don’t bring it back for three weeks and the vehicle has been damaged, then there likely would be no coverage. 

Certain provisions apply to the scheduled motor homes. An exclusion is added restricting liability coverage to the minimum financial responsibility limits of the garaging state of the vehicle if the vehicle is rented or leased to an organization or “insured” other than the named insured. An exception is then added for a motor home listed in the schedule that indicates that coverage is provided if the vehicle is rented or leased to an organization or other “insured” other than the named insured. Medical payments and physical damage coverages have similar restrictions. There is no coverage for motor homes rented or leased to others unless the home is listed in the schedule and the schedule indicates that coverage is provided if the vehicle is rented or leased. Lastly, physical damage to the motor home or its facilities and equipment is not covered due to fraudulent acquisition if the home is rented to, used by, or in the care of that person or organization. 

Summary

The automobile policy is designed to provide coverage for the insured’s auto and its equipment. What is considered a covered auto is specific to private passenger autos, pickups, or vans with less than 10,000 pounds gross vehicle weight. Vehicles with less than four wheels are excluded from liability and medical payments coverage. Similar to the homeowners policy, coverage can be provided for some miscellaneous vehicles and motor homes by endorsement. 

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