Auto Liability insurance covers things you are liable for (can be sued for) while you, someone named on the policy or a customer is driving one of your covered vehicles. This includes damage to the other car, bodily injury to non - employees, and to people injured by the accident that weren’t in either car. It also includes property damage to things in an accident that are not vehicles, such as bus benches, fire hydrants etc. It does not cover employees. Workers comprehensive covers that. Other Than Auto Liability insurance covers things you are liable for not involved in an auto accident. This can include slip and fall at your premises and completed operations/products liability. Coverage varies from carrier to carrier. Liability Aggregate Limits cover multiple accidents. If someone has a $100,000 liability with a 2X aggregate ($200,000) – after having a $100,000 claim, there is still a second $100,000 available to cover future claims during the policy period. Medical Payments pay for minor medical claims. Medical claims above this limit are covered by the liability limit. Uninsured Motorist Bodily Injury pays medical bills for people in your vehicle if your vehicle is hit by someone with no liability insurance. Underinsured Motorist Bodily Injury (Not available in all states.) Pays medical bills for people in your vehicle if in an accident is caused by someone with liability limit not high enough to pay all the medical bills for everyone in the accident. Personal Injury covers: liable, slander and defamation of character. Fire Legal Liability covers fire damage caused by an insured to the landlord’s building. Odometer Errors & Omissions Coverage pays for claims arising from odometer errors and omissions made by the dealer while selling/transferring ownership of a vehicle. Title Errors & Omissions pays for claims arising from title errors and omissions made by the dealer while selling/transferring ownership of a vehicle. This includes but is not limited to: salvage title, lemon law title, flood title etc. Truth In Lending Errors and Omissions pays for claims arising from “truth in lending“ errors and omissions. Truth in lending refers to interest rate, term of contract, etc. Errors & Omissions: Coverage is limited to “errors” and “omissions.” Does not cover fraud, misrepresentation or intentional acts.
False Pretense – Trick and Device – covers dealer losses due to the use of identity theft in the purchase of a vehicle. This includes the use of a fraudulent check to purchase a vehicle. (This does not include checks returned for non-sufficient funds.) Loaned Auto Liability is liability coverage when lending a vehicle to someone. Most companies limit this liability coverage to minimum required state liability limit. Unaccompanied Test Drive coverage gives a dealer the ability to photocopy the customer’s driver’s license and hand him the keys without going on the test drive. Many companies require a customer to be of certain age and have vehicle max value criteria. Dealer’s Drive Away discloses how far from the insured address coverage applies. Dealer’s Open Lot coverage is “inventory coverage.” Vehicles do not have to be “on a lot.” They can be in a warehouse or a listed storage location. Many companies allow them to be at the dealer’s home. Physical Damage Coverage is another term for “Dealers open lot / inventory” coverage. Comprehensive coverage (In many states known as “other than collision” coverage) pays to repair covered damage to a vehicle caused other than by a collision. Collision coverage pays for physical damage to a vehicle cause by fire and theft only. Max Per Vehicle is the most that will be paid for a single vehicle. Garage Keeper’s liability coverage pays for damage to non – owned vehicles left in the dealer’s care, custody and control. Scheduled Vehicles are vehicles listed on a dealer’s policy that are not held for sale. Common examples include tow trucks, customer shuttle vans and the dealer’s personal cars. Property Coverage, Building pays for damage to covered structure. Property Coverage, Contents pays for damage to business personal property other than vehicles. Common examples are computers, tools and furniture. IMPORTANT DISCLOSURE: The above definitions are “simple English definitions.” They are not “legal definitions.” For legal definitions please do an internet search for the term you would like defined or contact an attorney.