COMMERCIAL AUTO

Limit of liability you must have to satisfy State law is sometimes regulated by vehicle weight. If the gross weight exceeds 10,000 lbs then you must carry at least $750,000 of coverage per occurrence in California.

A company prefers (or may insist) that you carry commercial (rather than personal) coverage on a vehicle, especially if any of the following is true:

• The vehicle is EVER driven by employees.
• You have signs on the vehicle
• You EVER have an employee in the vehicle.
• You require a certificate of insurance showing that you have commercial coverage for your vehicle.
• The primary use of the vehicle is for commercial purposes.
• The vehicle is not normally used as a personal vehicle (e.g. a dump truck)
• The vehicle is very heavy and not considered a personal or recreational vehicle.

Why Do You Need Commercial Vehicle Coverage? It will pay your legal liability if you hurt someone or damaged/destroyed some of their property with your commercial vehicle.

Which is better, Split Limit or Combined Single Limit? Some people prefer the combined limit because an accident could be a case of your liability for only damaged property, or only bodily injury, but just to one person. You only have one limit (not three) to be concerned with. Split limit coverage is usually cheaper to purchase.
UM is a common abbreviation for Uninsured Motorists Coverage. It will pay to you and passengers in your car, for medical injuries and other associated financial losses in the event any of you are injured, the accident was the fault of another and that person was "hit and run" or just had no insurance.

Comprehensive An insurance term to mean just about anything except a crash (and that would be collision coverage). It includes potential losses like falling aircraft, flood, theft of the car, vandalism...It is a very comprehensive list.
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