Public Conveyance Auto Insurance: What You Need To Know

Public conveyance auto insurance is a type of insurance that covers the transportation of people and/or goods for hire, such as by a taxi service, motor carrier, or delivery service. This type of insurance is typically excluded under personal auto policies and requires a separate business auto policy or motor carrier/trucker's policy. In Canada, auto insurance is mandatory for all drivers, and each province has its own regulations and providers, with some provinces offering public auto insurance programs through government-owned corporations.

Public vs. private auto insurance in Canada

Auto insurance is mandatory for all drivers in Canada, and the industry is closely monitored by the provincial government. Each province and territory government regulates its automobile insurance industry, resulting in some differences in how car insurance works across the country. This includes whether you buy insurance from a private company or a government entity.

Public Auto Insurance

Public car insurance is supplied by an agency that is government-owned and operated. The benefit of a public system is that the cost to buy the minimum mandatory coverage tends to be lower. However, there is no competition, which means drivers may not be able to shop around for better rates or seek discounts for good driving.

In Canada, British Columbia, Saskatchewan, Manitoba, and Quebec operate either fully or partially under a public car insurance system. In Quebec, the government manages auto insurance for bodily injuries, while property damage coverage is provided by private insurers.

Private Auto Insurance

Private car insurance is sold by companies that operate for profit. An advantage of a private insurance system is that there are multiple insurers competing for business, which means drivers can shop around for rates and ask for discounts if they have a good driving record. However, because for-profit companies will try to avoid risk, motorists with a bad driving record are likely to pay more to be insured.

The six provinces with private auto insurance systems are Newfoundland and Labrador, Nova Scotia, New Brunswick, Prince Edward Island, Ontario, and Alberta. Canada's three territories (Nunavut, Yukon, and the Northwest Territories) also have private auto insurance.

Public auto insurance programs

Public auto insurance is a type of coverage that caters to vehicles and drivers that transport people and goods for hire. This includes taxis, motor carriers, and delivery services. This type of insurance is typically excluded under personal auto policies, and businesses in this category require a separate business auto policy.

Amwins National Transportation Underwriters (ANTU) is an example of a company that offers a public auto insurance program. Their program is tailored to the specific needs of public auto clients and is powered by a team of underwriters with extensive experience. ANTU's program is available in all states except Florida, Hawaii, Louisiana, Massachusetts, Michigan, New Jersey, and New York. To apply, clients must complete an industry-standard public auto application, provide driver schedules and loss information, and meet other specific requirements.

In addition to commercial public auto insurance programs, there are also government-assisted auto insurance programs for low-income drivers in certain states. For example, California, New Jersey, and Hawaii offer financial assistance programs to help low-income families meet the state's minimum insurance requirements. These programs often have specific eligibility requirements related to income, driving record, vehicle value, and residency.

Private auto insurance systems

Public conveyance auto insurance is for vehicles used to transport people and/or goods for hire, such as a taxi service, motor carrier, or delivery service. This type of insurance is excluded under personal auto policies (PAP), and these businesses would instead need a business auto policy (BAP).

Now, private auto insurance systems are designed to provide coverage for private passenger vehicles, including cars, trucks, vans, motorcycles, and other types of vehicles used for personal transportation. Here's an overview of private auto insurance systems:

Coverage Options

Private auto insurance typically offers a range of coverage options to choose from. The most common types of coverage include:

• Liability coverage: This is often required by law and covers injuries or damage caused to others in an accident that is your fault. It includes bodily injury liability and property damage liability.
• Collision coverage: This covers damage to your vehicle caused by a collision with another vehicle or object, regardless of fault.
• Comprehensive coverage: This covers damage to your vehicle from incidents other than collisions, such as fire, theft, vandalism, or natural disasters.
• Uninsured/Underinsured Motorist Coverage (UMC): This protects you if you're in an accident with a driver who doesn't have insurance or has insufficient coverage.
• Medical Payments Coverage: This covers medical expenses for you and your passengers, regardless of who is at fault in the accident.

Cost Considerations

The cost of private auto insurance can vary depending on several factors, including your driving record, age, location, and the type of vehicle you own. Here are some key cost considerations:

• Premium: The premium is the amount you pay to the insurance company for your policy, and it can be paid monthly or annually. The premium amount depends on the coverage options you choose and the level of protection you require.
• Deductible: A deductible is the amount you are responsible for paying before your insurance coverage kicks in. Typically, a higher deductible results in a lower premium.
• Coverage Limits: Each type of coverage has its own limits, which represent the maximum amount the insurance company will pay for a single accident or claim. Higher coverage limits will generally increase your premium.

Choosing an Insurer

When selecting a private auto insurance provider, it's important to compare multiple insurers and get several quotes. Consider the following:

• Reputation and Financial Stability: Choose an insurance company with a good reputation for handling claims fairly and efficiently. Ensure they have strong financial stability ratings to guarantee their ability to pay out claims.
• Coverage Options: Compare the coverage options offered by different insurers to ensure you get the protection you need.
• Discounts: Ask about available discounts, such as those for good drivers, safety features, or bundling multiple policies.
• Customer Service: Opt for an insurer with a responsive and accessible customer service team that can guide you through the claims process if needed.

Understanding Your Policy

Once you've selected an insurer and purchased a policy, it's crucial to thoroughly understand the terms and conditions of your private auto insurance policy. Here are some key considerations:

• Read the Fine Print: Take the time to read your policy document carefully, including the coverages, exclusions, and any limitations or restrictions.
• Know Your Rights and Responsibilities: Understand your rights as a policyholder and your responsibilities in maintaining your coverage and filing claims.
• Keep Your Information Up to Date: Inform your insurance provider of any changes, such as a new address or modifications to your vehicle, to ensure your policy remains valid.

In summary, private auto insurance systems provide essential financial protection for individuals and their vehicles. By understanding the coverage options, cost considerations, and the process of choosing and managing your policy, you can ensure you have the appropriate level of protection in place.

Motor insurance in the UK

In the UK, motor insurance is a legal requirement for driving or keeping a car on a public road. The minimum level of insurance required by law is third-party insurance, which covers injury to other people and damage to their vehicles or property. However, it does not cover any other costs such as repairs to the insured's vehicle.

There are three levels of motor insurance cover in the UK:

• Third-party insurance: This is the minimum legal requirement and covers injury to other people and damage to their vehicles or property.
• Third-party, fire, and theft insurance: This includes everything that third-party cover offers and also covers the cost of damage or loss to the insured's vehicle due to fire or theft.
• Fully comprehensive insurance: This offers the most cover, including all the benefits of third-party, fire, and theft insurance, as well as protection for the insured driver and compensation for medical treatment, legal expenses, and accidental damage.

The cost of motor insurance in the UK depends on various factors, including the age, experience, and claims history of the driver, as well as the type and value of the vehicle being insured. On average, the annual premium for car insurance in the UK is £688, but this can vary significantly depending on individual circumstances.

Public conveyance auto insurance, on the other hand, refers to the transportation of people and/or goods for hire, such as by a taxi service, motor carrier, or delivery service. This type of insurance is typically excluded under personal auto policies and requires a separate business auto policy.

Personal conveyance in trucking

There are several appropriate uses of a CMV while off-duty for personal conveyance, including:

• Time spent travelling from a driver's en route lodging (e.g. motel or truck stop) to restaurants and entertainment facilities.
• Commuting between the driver's terminal and their residence, between trailer-drop lots and the driver's residence, and between work sites and their residence.
• Time spent travelling to a nearby, reasonable, and safe location to obtain required rest after loading or unloading.
• Moving a CMV at the request of a safety official during the driver's off-duty time.
• Time spent transporting personal property while off-duty.
• Authorised use of a CMV to travel home after working at an offsite location.

It is important to note that personal conveyance rules do not reduce a driver's responsibility to operate a CMV safely. Motor carriers can establish their own personal conveyance limitations, which may be more restrictive than the FMCSA's guidance. For example, carriers may ban the use of CMVs for personal conveyance, impose distance limitations, or prohibit personal conveyance while the CMV is laden.

Frequently asked questions