Idaho Commercial Auto Insurance

Commercial auto insurance is essential for Idaho businesses that use vehicles in their operations. From delivery trucks to service vehicles to long-haul trucking, commercial auto policies provide the specialized coverage businesses need.

Commercial Auto Policy Structure

Business Auto Coverage Form (CA 00 01)

The standard commercial auto form provides:

Covered Autos:

• Owned vehicles
• Hired vehicles
• Non-owned vehicles
• Newly acquired vehicles

Coverages Available:

• Liability
• Medical payments
• Uninsured/Underinsured motorist
• Physical damage (collision and comprehensive)
• Personal injury protection
• Cargo coverage (endorsement)

Covered Auto Symbols

Commercial auto policies use symbols to designate coverage:

Symbol Selection Strategy

Liability Coverage:

• Symbol 1 (Any Auto) provides broadest protection
• Covers hired and non-owned automatically
• Most businesses should use Symbol 1 for liability

Physical Damage:

• Symbol 7 (Specifically Described) common for collision/comp
• Only scheduled vehicles covered
• Must update when adding vehicles

Idaho Commercial Auto Requirements

Minimum Liability Limits

Idaho requires the same minimum liability for commercial vehicles as personal:

However, most commercial operations carry much higher limits:

• $500,000 to $1,000,000 combined single limit common
• Higher limits required for certain operations
• Contract requirements often exceed state minimums

Commercial Vehicle Classifications

Fleet Insurance

What Is Fleet Coverage?

Fleet insurance covers multiple vehicles under one policy:

Benefits:

• Single policy, single renewal
• Administrative efficiency
• Often premium discounts
• Blanket coverage for all vehicles
• Easier additions/deletions

Fleet Eligibility

Typical requirements:

• Minimum number of vehicles (often 5-10)
• Related business operations
• Common ownership or control
• Centralized management

Fleet Rating

Experience Rating:

• Based on fleet's loss history
• Good experience = lower rates
• Poor experience = higher rates

Retrospective Rating:

• Premium adjusted after policy term
• Based on actual losses
• Common for large fleets

Motor Carrier Requirements

Interstate Trucking

Idaho-based trucking companies operating interstate must comply with federal regulations:

Federal Motor Carrier Safety Administration (FMCSA):

• Sets minimum insurance requirements
• Operating authority requirements
• Safety regulations and compliance

Minimum Insurance for Motor Carriers

MCS-90 Endorsement

Motor Carrier Act Endorsement:

• Required for for-hire interstate trucking
• Ensures minimum liability coverage
• Protects third parties
• Makes insurer directly liable up to minimum limits

Key Features:

• Insurer must pay covered claims up to minimum limits
• Even if policy excludes the loss
• Even if policy is voided or cancelled
• Insurer can seek reimbursement from insured

Cargo Insurance

Motor Truck Cargo Policy:

• Protects cargo while in transit
• Required by many shippers
• Liability to customer for damaged goods
• May be required for operating authority

Coverage Types:

• Named perils
• All-risk (broad form)
• Refrigeration breakdown
• Contamination coverage

Commercial Auto Physical Damage

Collision Coverage

Covers damage from collision:

• With another vehicle
• With objects (poles, buildings, etc.)
• Overturns
• Regardless of fault

Valuation Methods:

• Actual Cash Value (most common)
• Stated Amount
• Replacement Cost (rare for commercial)

Comprehensive Coverage

Covers non-collision losses:

• Theft
• Fire
• Vandalism
• Weather (hail, flood)
• Glass breakage
• Falling objects
• Animal strikes

Deductible Considerations

Higher deductibles:

• Lower premiums
• Retain more risk
• Require loss fund reserves

Specialized Commercial Auto Coverages

Garage Coverage

For auto dealerships, repair shops, service stations:

Garage Liability:

• Covers premises and operations
• Completed operations
• Products liability
• Customer vehicles

Garagekeepers Coverage:

• Damage to customer vehicles in care
• Direct primary or excess coverage
• Legal liability vs. direct coverage

Truckers Coverage

Specialized for long-haul trucking:

• Trailer interchange coverage
• Non-trucking (bobtail) liability
• Physical damage while deadheading

Hired and Non-Owned Auto

Hired Auto:

• Rental vehicles for business
• Leased vehicles
• Both liability and physical damage available

Non-Owned Auto:

• Employee personal vehicles
• Liability only (employee's policy covers vehicle)
• Important for businesses with driving employees

Idaho Commercial Auto Considerations

Winter Operations

Cold Weather Challenges:

• Chain requirements in mountains
• Increased accident frequency
• Cargo damage from temperature
• Equipment breakdown

Agricultural Vehicles

Special Considerations:

• Seasonal use vehicles
• Equipment crossing roads
• Hired labor driving
• Custom harvesting operations

Logging Operations

Idaho's timber industry requires:

• Specialized logging trucks
• Load securement requirements
• Remote road operations
• Higher liability limits common

Tourism and Recreation

RV Dealers and Rentals:

• Garage coverage for dealers
• Rental policies for rental operations
• Customer driving coverage

Outfitters and Guides:

• Passenger auto liability
• Specialty endorsements
• Higher limits for passenger operations