Understanding Auto Insurance Vehicle Symbols And Their Meanings

Auto insurance vehicle symbols are numeric codes that indicate the types of vehicles covered by an insurance policy. These symbols are crucial in defining the scope of coverage and determining the premium for each particular type of car. The symbols reflect the policyholder's choice of what types of vehicles are insured under their policy. For example, a symbol might indicate that only owned autos are covered, or that hired and non-owned autos are also included. These symbols are often found on the declarations page of an auto policy, listed next to each coverage purchased.

Auto Insurance Vehicle Symbols

Covered auto designation symbols

The first point to note is that the symbol may apply to a particular kind of vehicle or to the vehicle's ownership status. Secondly, the term "auto" is a defined term, and its definition may vary among different insurance companies. Thirdly, the symbols differ depending on whether the coverage is for liability or physical damage.

Symbol 1 = Any "Auto"

This is the broadest symbol designation and covers any "auto" used in a business, including owned, hired, or non-owned autos. It is important to note that Symbol 1 can only be used to trigger auto liability coverage and not any other type of coverage.

Symbol 2 = Owned "Autos" Only

This symbol covers any "auto" owned by an insured, including private passenger type autos and commercial vehicles (trucks). It also applies to any "trailer" while it is towed by an owned vehicle.

Symbol 3 = Owned Private Passenger "Autos" Only

This symbol covers only private passenger type "autos" owned by the insured. It provides automatic coverage for liability, medical payments, uninsured and underinsured motorists, physical damage coverages, or towing.

Symbol 4 = Owned "Autos" Other Than Private Passenger "Autos" Only

This symbol covers all "autos" other than private passenger type "autos" (such as commercial trucks, vans, or motorized equipment) owned by an insured. Similar to Symbol 2, it also applies to any "trailer" while it is towed by an owned vehicle.

Symbol 5 = Owned "Autos" Subject to No-Fault

This symbol is used when no-fault auto laws exist in a particular state or territory. It provides coverage for autos owned by an insured that are garaged or licensed in a jurisdiction where no-fault benefit laws exist.

Symbol 6 = Owned "Autos" Subject to a Compulsory Uninsured Motorist Law

This symbol is used when the state or territory requires drivers to carry uninsured motorist coverage and does not permit rejection. It covers autos owned by an insured that are subject to these laws.

Symbol 7 = Specifically Described "Autos"

This symbol only covers autos that are specifically listed on the policy, along with any trailers towed by the listed vehicles. It does not provide automatic coverage for newly acquired vehicles, and the insurance company must be notified within a specified timeframe.

Symbol 8 = Hired "Autos" Only

This symbol covers autos that are leased, hired, rented, or borrowed by the insured, excluding any vehicles from employees, partners, or members of their household.

Symbol 9 = Non-owned "Autos" Only

This symbol covers autos used in the insured's business but not owned, leased, hired, rented, or borrowed by them. It includes autos owned by employees, partners, or members of their household when used in the insured's business or personal affairs.

Symbol 10 = Mobile Equipment Subject to Compulsory or Financial Responsibility Law

This symbol applies to land vehicles considered mobile equipment and allows for coverage extension in specific states or territories.

Vehicle Series Rating (VSR)

The VSR program assigns a code called a rating symbol to each vehicle series, which is defined by characteristics like make, model, body style, and wheelbase. The rating symbol is based on the manufacturer's suggested retail price (MSRP) of a new vehicle. ISO then examines the normalised loss experience for the vehicle series and makes adjustments to the symbol, either upward or downward. These adjustments reflect differences not covered by other rating variables, such as driver classifications, use of the vehicle, and place of garaging. The VSR program captures differences caused by factors such as the attractiveness of the vehicle to theft and the likelihood of damage. For example, a $30,000 minivan is less likely to be stolen than a $30,000 sports car, and the damage sustained in an accident could be different for a $40,000 luxury car with a fibreglass body compared to a $40,000 sports utility vehicle.

The rating symbols are used by insurers to determine premiums for individual policies. A vehicle with a higher rating symbol will generally have a higher premium than a vehicle with a lower symbol, assuming all other rating variables remain the same.

There are two types of rating symbols: Personal Auto Physical Damage Rating Symbols and Liability and PIP/Medical Payments (LPMP) Symbols. Personal Auto Physical Damage Rating Symbols indicate the relative risk of loss for each private passenger vehicle for a given model year. Each symbol has a corresponding factor that helps insurers set premiums for comprehensive and collision coverage. LPMP Symbols, on the other hand, indicate the relative risk of loss for each private passenger vehicle series and are used to develop premiums for liability and PIP/medical payments coverage.

Business auto insurance symbols

The symbols typically range from 1 to 9 and become more specific as the numbers increase. Here is a breakdown of the most common business auto insurance symbols and their meanings:

• Any "Auto": This is the broadest symbol, covering any auto, including scheduled, hired, and non-owned vehicles. It is the most comprehensive coverage option but may not be available for all businesses.
• Owned "Autos" Only: This symbol covers any auto owned by the insured, including those acquired after the policy begins. It also applies to trailers towed by owned vehicles.
• Owned Private Passenger "Autos" Only: This symbol specifically covers private passenger type autos owned by the insured, including any acquired after the policy begins.
• Owned "Autos" Other Than Private Passenger "Autos" Only: This symbol covers all autos other than private passenger type autos owned by the insured, such as commercial trucks or vans. It also includes trailers towed by owned vehicles.
• Owned "Autos" Subject to No-Fault: This symbol applies to autos owned by the insured and garaged or licensed in states with no-fault benefit laws.
• Owned "Autos" Subject to a Compulsory Uninsured Motorist Law: This symbol is for autos owned by the insured and garaged or licensed in states where drivers are required to have uninsured motorist coverage.
• Specifically Described "Autos": This symbol covers only the autos and trailers specifically listed on the policy. Any vehicle not listed will not be covered under this symbol.
• Hired "Autos" Only: This symbol covers autos leased, hired, rented, or borrowed by the insured for their business. It does not include autos used by employees, partners, or household members.
• Non-owned "Autos" Only: This symbol covers autos that the insured does not own, lease, hire, rent, or borrow but are used for business purposes. This includes autos owned by employees or partners and used for business or personal matters.

These symbols are essential for business owners to understand as they outline the extent of their auto insurance coverage. By adjusting these symbols, businesses can customise their policies to fit their unique needs and ensure proper protection for their vehicles.

Custom symbols

Auto insurance vehicle symbols are a type of code that represents the type of vehicle protected by a given insurance policy, as well as the vehicle's ownership status. These symbols are often referred to as covered auto designation symbols. They are Arabic numerals that denote the category of autos that a commercial auto policy's various coverages will apply to.

While there are standard symbols used across the industry, custom symbols also exist. Symbols 10 (business auto), 32 (garage), 51 and 52 (truckers), and 72 and 73 (motor carrier) are custom symbols. These are available through the use of the Covered Autos Designation Symbol (CA 99 54) endorsement. This endorsement allows the insurer and the named insured to agree on modified wording that better defines the term "covered autos" for the specific policy.

It is important to note that the meaning of these symbols can vary among different insurance companies, so it is crucial for policyholders to familiarise themselves with the specific definitions provided by their insurance provider. By understanding these custom symbols, business owners can ensure that their vehicles are appropriately protected and that their insurance coverage aligns with their unique needs.

Personal Auto Physical Damage Rating Symbols

Verisk offers two types of symbols: Personal Auto Physical Damage Rating Symbols and Liability and PIP/Medical Payments (LPMP) Symbols. For Personal Auto Physical Damage Rating Symbols, Verisk initially assigns a preliminary symbol, or a price-new symbol, based on the manufacturer's suggested retail price (MSRP) of the vehicle. This symbol is then adjusted based on the actual loss experience for the vehicle series to which the vehicle belongs. If a vehicle has a higher MSRP, it will generally be more expensive to insure. However, other factors, such as repair costs, theft records, and the nature of damage the vehicle may sustain in a crash, can also influence the insurance cost.

Verisk makes adjustments to the symbol based on claim frequency and severity. For instance, some vehicles may be more prone to theft, involved in more collisions, or have higher repair costs, which can impact the symbol assigned. These adjustments ensure that the symbols reflect equity and accuracy in representing the risk associated with a particular vehicle.

The symbols are designed to provide guidance to insurers, who can choose to use them as-is, modify them, or not use them at all. By understanding these symbols, individuals can make informed decisions when purchasing a vehicle, as the choice of vehicle can significantly affect physical damage premiums.

Frequently asked questions