SYMBOL 3 OWNED PRIVATE PASSENGER AUTOS ONLY

Symbol 3 Owned Private Passenger Autos Only – The Commercial Auto Insurance Designation

In plain language: Symbol 3, in "owned private passenger autos only," is a detail in a commercial auto insurance policy. It tells you that the policy only covers personal-use cars that the business owns.

Technical definition: In the realm of commercial auto symbols, Symbol 3 refers to "owned private passenger autos only". It is typically featured within the declarations page of a business auto policy and indicates that physical damage coverage is specifically extended only to owned private passenger autos. This is commonly seen in commercial automobile policy symbols.

Making a mistake with commercial auto symbols can mean significant gaps in coverage for your agency’s clients. One common area of confusion is the implications of Symbol 3 in commercial automobile insurance.

TL;DR

Symbol 3 is a component of commercial auto coverage that relates to owned private passenger autos only

Understanding symbol 3 is critical in day-to-day agency work to ensure adequate coverage for clients

A common pitfall is misunderstanding Symbol 3, leading to insufficient coverage

The "quick win" here is educating agencies about the use of commercial auto symbols

What Is Symbol 3 Owned Private Passenger Autos Only in Insurance?

In the context of business auto policy, Symbol 3 Owned Private Passenger Autos Only, is a type of covered auto designation symbol. This label states that the policy will only provide physical damage coverage for owned private passenger autos. These are generally passenger vehicles that the business legally owns and uses for both business and private purposes.

This symbol usually appears in the declarations section of a commercial automobile policy. It helps insurers and businesses better outline the extent of their coverage. For instance, this would not cover commercial vehicles such as trucks or rented or leased vehicles, specified under different symbols like Symbol 8 for hired autos only or Symbol 10 for specifically described autos.

Key Related Terms to Know

Business Auto Policy (BAP) - This is a policy that covers commercial vehicles for a range of liability and physical damage coverage.

Commercial Auto Symbols - These are numerical symbols listed within a policy to describe what vehicles are covered.

Physical Damage Coverage - This refers to coverage that helps pay to repair or replace your vehicle if it's damaged in an accident, theft, or natural disaster.

Specifically Described Autos – A category of covered autos in a commercial auto policy, this refers to vehicles that are specifically listed (by VIN typically) on the policy.

Common Questions About Symbol 3 Owned Private Passenger Autos Only

What’s the importance of Symbol 3 in Commercial Auto Insurance?

Symbol 3 signals the specific scope of vehicle coverage in the business auto policy. Understanding how it works contributes to the clarity of the commercial auto coverage being purchased. Its significant importance lies in its specific target– the owned and private passenger autos. The limitation can help businesses to save on premiums by not paying for unnecessary coverage.

How does Symbol 3 differ from other commercial auto symbols?

Unlike other more comprehensive commercial auto symbols, Symbol 3 Owned Private Passenger Autos Only provides coverage only for private passenger autos that the business actually owns. If the business rents, leases, or hires vehicles, or if the vehicles are not private passenger autos, Symbol 3 would not provide coverage, leaving a significant gap.

What happens when Symbol 3 is misunderstood in the context of insurance?

A misunderstanding of Symbol 3 could lead to dire consequences. If a business thinks, for example, that their rented vehicle is covered when it is not, it could lead to costly out-of-pocket expenses in case of an accident.

Symbol 3 vs. Symbol 8

There are stark differences between Symbol 3 and Symbol 8, two of the most commonly misunderstood commercial automobile policy symbols.

Comparison Area	Symbol 3	Symbol 8
Primary use case	Covering private passenger owned autos only	Covering hired autos only
Coverage / concept type	Private passenger vehicles owned by the business	Vehicles hired, rented, or borrowed by the business
Typical exclusions	Hired, leased, or non-owned vehicles	Owned vehicles
Who is most affected by errors	Businesses with owned passenger autos	Businesses that hire, rent, or borrow vehicles
Common mistakes	Businesses failing to cover hired autos with proper symbol usage	Businesses assuming their owned autos are covered under this symbol

Real Claim Examples Involving Symbol 3

Scenario 1: A local bakery owner used his personal car, covered under Symbol 3 in their business auto policy, for deliveries. After an accident, the physical damage coverage effectively covered the repair costs, proving the value of Symbol 3.

Scenario 2: A startup company mistakenly believed that the rented vehicles they utilized for business operations were covered under their Symbol 3 designated policy. However, when a rented car got damaged, the business had to shoulder the repair cost as Symbol 3 only covered owned private passenger autos and not hired autos.

Scenario 3: A small agency had a Symbol 3 policy but brought a hired vehicle for a business tour, assuming it was covered. An accident occurred, and they were surprised to find out the damages were not covered leading to out-of-the-pocket expenses. =

Limitations and Common Mistakes

The "owned autos only" part of Symbol 3 Owned Private Passenger Autos Only means that only vehicles owned by the business are included in the coverage.

Businesses can mistakenly assume that Symbol 3 applies to all their vehicles, including hired or non-owned ones. This can lead to significant gaps in their coverage.

Symbol 3 can also potentially exclude certain common coverages like hired auto physical damage coverage.

Physical damage coverage needs to be specifically listed under the Symbol 3 section of a policy for it to apply.

How to Explain Symbol 3 to Clients

Personal Lines client "Think of Symbol 3 as a label on your business policy that says, 'We will help payout for damages to cars your business owns. But this only applies to cars you use just like your personal family car and nothing else."

Small Business owner "Symbol 3 in your commercial auto policy specifies the kind of cars your policy covers. It only covers personal use cars that your business owns. It won't cover trucks or cars your business rents or leases, which can have other symbols."

CFO or Risk Manager "Understand that with Symbol 3, the commercial auto policy covers physical damages to the company-owned private passenger autos only. This would not cover the corporate trucks or hired, borrowed, or non-owned vehicles used for haulage, private hire or other uses."

SYMBOL 3  OWNED PRIVATE PASSENGER AUTOS ONLY