An accident is a sudden, unexpected event or occurrence that causes bodily injury or property damage. The
event may be at-fault, not-at-fault, reported or unreported. An example of a not-at-fault accident could be where
your parked vehicle is struck by another vehicle.
Accident Report Form
Typically referred to as a police report, this report contains important information about an auto accident, such
as circumstances, parties involved and citations given.
Actual Cash Value (ACV)
A vehicle's actual cash value, also called the market value, is essentially the price someone would pay to
purchase that exact vehicle today. It's determined by evaluating a number of factors, including the vehicle's
age and condition, as well as any prior damage, improvements, or special equipment.
A company or person who may be liable for an accident that involves an insured person or vehicle can be
added to the policy as an additional insured.
Example: A general contractor can be an additional insured.
A device, either active or passive, that attempts to prevent vehicle theft. Active anti-theft devices can track and
recover a vehicle and automatically contact a response center to begin the vehicle recovery process. Passive
anti-theft devices attempt to prevent theft by using sophisticated electronic car alarms, simple steering wheel
Any Auto Coverage
Any Auto coverage extends Liability insurance to hired and other non-owned vehicles, and vehicles you
purchase during your policy term. It extends the same Liability coverage and limits you carry for the vehicles
already listed on your policy to the unlisted vehicles. Any Auto coverage requires a contractual agreement
stating the need for the coverage. Other restrictions could apply.
A form providing the insurer with certain information necessary to underwrite a given risk. The applicant
completes it to receive insurance.
Bill of Sale
Is a document recording a transaction between two parties. For the seller, a bill of sale shows the date the
vehicle was sold and information about the buyer. For the buyer, it gives specific information about the vehicle
that can be checked against a Vehicle History Report.
A legal agreement issued by either an agent or an insurer to provide temporary evidence of insurance until a
policy can be issued. Binders should contain definite time limits, should be in writing, and should clearly
designate the insurer with which the risk is bound. They should also indicate the amount of insurance, the type
of policy, and (in the case of property insurance) the perils insured against.
Although Bobtail coverage is often used interchangeably with Non-Trucking Liability coverage, technically they
are not the same thing. Bobtail insurance protects a tractor when it's operated without a trailer, whether or not
it's under dispatch, while Non-Trucking Liability coverage only covers a vehicle when it's driven for personal,
Bodly Injury Liability Coverage (BI)
Bodily Injury Liability is one part of Liability Coverage. If you are responsible for causing an accident, Bodily
Injury Liability coverage pays for injuries/death to people involved in the accident. Bodily Injury Liability
coverage also pays for legal defense costs if you are sued.
A three-party contract under which the insurer agrees to pay losses caused by criminal acts (e.g., fidelity
bonds) or the failure to perform a specific act (e.g., performance or surety bonds). The principal (i.e., the party
paying the bond premium) is also called the obligor (i.e., the party with the obligation to perform). If there is a
default, the surety (i.e., the insurer) pays the loss of the third party (the obligee). The obligor must then
reimburse the surety for the amount of loss paid.
A broker is a person or an entity which arranges for the transportation of property by a motor carrier for
compensation. A broker does not transport the property and does not assume responsibility for the property
Covering property in transit.
Is a person or company that transports goods or people for any person or company and that is responsible for
any possible loss of the goods during transport.
When you suffer a loss that’s covered by your insurance, such as an automobile accident, you submit a request
to your auto insurance company to pay or reimburse you for expenses, damages and other financial
obligations. By definition, that request is called a claim.
A representative of an auto insurance company who investigates and settles claims to ensure that all parties
– you, your auto insurance company, and anyone else involved – receive fair compensation.
When your insured vehicle overturns or collides with another object, Collision coverage pays for the damage
to your vehicle.
Combined Single Limit (CSL)
CSL is a single number that describes the predetermined limit for the combined total of the Bodily Injury Liability
coverage and Property Damage Liability coverage per occurrence or accident.
Example: A CSL of $1 million pays up to a combined total of $1 million for both Bodily Injury Liability coverage
and Property Damage Liability coverage for any single accident.
Combined Single Limit (CSL)
A CDL is a special license needed by operators of tractors, vehicles over 26,000 GVW, or vehicles carrying
more than seven passengers.
Commercial Motor Vehicle (CMV)
A motor vehicle or combination of motor vehicles used in commerce to transport passengers or property if the
• Has a gross combination weight rating of 26,001 or more pounds inclusive of a towed unit with a gross
vehicle weight rating of more than 10,000 pounds.
• Has a gross vehicle weight rating of 26,001 or more pounds.
• Is designed to transport 16 or more passengers, including the driver.
• Is of any size and is used in the transportation of materials found to be hazardous for the purposes of
the Hazardous Materials Transportation Act.
If your insured vehicle is damaged due to an event other than a collision, Comprehensive coverage will pay
for the damage. This includes damages from fire, theft, windstorm, flood, vandalism or contact with persons,
animals, birds or falling objects.
Grouping of goods belonging to several consignees, assembled to be transported from a port, airport or land
terminal to another port, airport or land terminal, in containers or similar, only if there is a single written
transportation support document for them.
Coverage is the word used to describe protection for an insured as provided by an insurance policy. A particular
coverage may refer to a specific component of insurance that provides protection under a given set of
Declarations Page (Dec Page)
Also known as an auto insurance coverage summary, this page is provided by your insurance company and
lists the following:
• Types of coverage you have elected
• Limit for each coverage
• Cost for each coverage
• Specified vehicles covered by the policy
• Types of coverage for each vehicle covered by the policy, and
• Other information applicable to the policy
A deductible is the dollar amount you agree to pay out of pocket for damage resulting from a specific loss or
accident. Deductibles always are selected when you purchase an insurance policy.
Doing Business As (DBA) name
A DBA is a name by which a company is known to the public but which is not its legal name.
Employeer Identification Number (EIN)
A unique identification number that is assigned to a business entity so that they can easily be identified by the
Internal Revenue Service (IRS). The employer Identification Number is commonly udes by employers for the
purpose of reporting taxes. Also known as a federal Tax identification Number.
Electronic Funds Transfer (EFT)
EFT is a payment method in which funds are automatically deducted from a customer's checking account to
pay bills on a regularly scheduled basis. Customers must select the EFT payment method and authorize
payments in advance to use this system to pay their bills.
Employer's Non-Owned Coverage
Employer's Non-Owned coverage provides Liability insurance for a vehicle owned by your employee if it must
be used to conduct your business. This coverage is for vehicles that are not regularly used for the business.
Any change, addition or optional coverage added to a policy. These include adding a new vehicle or driver,
changing your address, adjusting limits and other modifications.
Specifically identified situations that are not covered by your auto insurance policy.
Federal Motor Carrier Safety Administration (FMCSA)
The Federal Motor Carrier Safety administration was established within the Department of Transportation on
January 1, 2000, pursuant to the Motor Carrier Safety Improvement Act of 1999.
Formerly a part of the Federal Highway Administration, the federal Motor Carrier Safety Administration’s
primary mission is to prevent commercial motor vehicle-related fatalities and injuries. Activities of the
Administration contribute to ensuring safety in motor carrier operations through strong enforcement of safety
regulations, targeting high-risk carriers and commercial motor vehicle equipment and operating standards; and
increasing safety awareness. To accomplish these activities, the Administration work with Federal, State and
Local enforcement agencies, the motor carrier industry, labor safety interest groups, and others.
A filing is like a certificate of insurance issued by an insurer that provides proof of specific insurance coverage.
There are both federal filings and state filings.
Federal filings are submitted to the Federal Highway Administration. They often are required for interstate
transportation of goods, people or hazardous materials.
State filings are submitted to a specific state's Department of Transportation or other governing body. They
often are required for intrastate transportation of goods, people or hazardous materials.
Federal Highway Administration (FHWA)
The FHWA is a branch of the federal government that regulates interstate transportation of goods and people.
Fire and theft With Combined Additional Coverages
The damage or loss must be caused by one of the following: fire, lightning, explosion, theft, windstorms, hail,
earthquakes, flood, rising waters, vandalism, a collision with an animal, or while being transported by a third
For-hire truckers are truck operators who transport goods for a fee.
Firm specializing in arranging storage and shipping of merchandise on behalf of its shippers. It usually
provides a full range of services including: tracking inland transportation, preparation of shipping and export
documents, warehousing, booking cargo space, negotiating freight charges, freight consolidation, cargo
insurance, and filing of insurance claims.
Garagekeepers Legal Liability Insurance
Garage Keeper's Legal Liability coverage was designed for towing businesses. It protects your customers'
vehicles in case of fire, explosion, theft, vandalism or collision when the vehicle is at your garage or covered
location for servicing, parking or storing.
A garaging location is the place you primarily park your vehicle when you're not using it. Generally, this is your
primary business address.
Gross Vehicle Weight (GVW)
GVW is the total weight capacity of a fully loaded vehicle. It can be calculated by adding the weight of the
vehicle to the maximum weight of a load that could be carried in the vehicle. GVW can be obtained by checking
the manufacturer's general information for the vehicle.
Hired Auto Coverage
Hired Auto coverage provides Liability coverage for a non-owned, unlisted vehicle that you have leased, hired,
rented or borrowed.
This is the proof that this or that vehicle has coverage and gives details of who is covering. It also contains
information of who you can contact in case of claim.
International Fuel Tax Agreement (IFTA)
A plan involving a majority of the 48 contiguous states, most of which require interstate motor carriers to report
how much fuel they use within the borders of their state for taxing purposes. Under IFTA, such carriers may
report fuel used in all such states to one base state. Each motor carrier must maintain a complete record of all
fuel purchased and used in its operations, together with detailed mileage records on an individual vehicle basis.
A state's fuel "use" tax enables it to assess highway user fees on all motor carriers that travel on its roads, not
just those that purchase fuel within the state and pay the tax at the fuel pump.
Individual Named Insured Endorsement
This coverage extends your Liability and Physical Damage coverages to other non-owned private passenger-
type autos that you, or a resident relative, might drive.
This coverage is for vehicles that are not available for your regular use, and that are not owned by you, your
spouse or any resident of your household. This coverage is available only to individual named insureds, and
not to corporations or partnerships.
Single Deductible Endorsement
If you cross the border of one state into another state, that is interstate travel.
If you stay within the borders of one state, that is intrastate travel.
Is a document that specifies the terms of the deal, and provide information on the available methods of
A lease is a contract or arrangement in which the use of equipment, such as a vehicle, is granted for a specified
time at a specified price.
Liability coverage provides protection against your legal liability for Bodily Injury and/or Property
Damage caused by the negligence of your employees or yourself in the operation or use of your insured motor
vehicle. This coverage also provides you with legal defense costs in the event you are sued as a result of an
A legal claim against or financial interest in the property of another, usually created by having performed work
on or advanced funds in connection with the property.
Limited Liability Company (LLC)
A Limited Liability Company combines the personal liability protections of a corporation and the pass-through
tax benefits of a partnership or sole proprietorship. Owners of LLCs typically are called members and share
equally in the management responsibilities of the company. LLCs may also choose to appoint certain owners
or outside personnel to manage business operations.
An insurance coverage limit is selected by you at the time you purchase a policy. It describes the maximum
an insurance company will pay for damages or injuries that apply to a specific coverage. Most states have laws
that specify the minimum limit that must be purchased for each required insurance coverage.
Liability coverage limits can be described as a combined single limit (CSL) or as a split limit.
A person or entity that is entitled to all or part of the insurance proceeds in connection with the covered property
in which it has an interest. Often those asking to be named as loss payees have leased some type of equipment
to the insured—a photocopy machine, for example. Several different loss payee clauses address different
insurable interest situations. A loss payee is also common in a personal auto policy (PAP) in which the
automobile is financed. The lending institution would be listed as the loss payee on the declarations page
Periodic reports of claim information provided by insurance companies to their insureds.
Medical Payments (MedPay) Coverage
MedPay is an optional insurance coverage that pays for reasonable and necessary medical and funeral
expenses for covered persons. These expenses must be incurred as a result of an auto accident.
Managing General Agent (MGA)
A specialized type of insurance agent/broker that unlike traditional agents/brokers, is vested with underwriting
authority from an insurer. Typically, MGAs are involved with unusual lines of coverage, such as professional
liability and surplus lines of insurance, in which specialized expertise is required to underwrite the policies.
In addition to getting a DOT number, you need to apply for an MC (Motor Carrier) number to operate as a "for-
hire" carrier in interstate commerce, or to become a broker.
A minimum limit is the least amount of insurance coverage required by state law. Sometimes also called
statutory limits, minimum limit requirements or basic limits.
Motor Vehicle Report (MVR):
A state record of licensing status, violations, suspensions, and other infractions you’ve had over the last several
years. The MVR is one of many factors used by your auto insurance company to fairly determine your premium,
based on the probability that you’ll have a claim in the future.
The named insured is the name of the business or person who owns the insurance policy.
Non-Trucking Liability Coverage
Non-Trucking Liability insurance can pay for medical and associated expenses for injuries or even death that
you cause to other people or for any damage caused to other peoples' property. Non-Trucking Liability
insurance provides liability coverage for the truck when it's used for personal use only.
NTL does not provide liability coverage for any use that can be considered business use or to carry cargo.
Trips to and from the terminal, fueling up, trips for maintenance or vehicle servicing, use during layovers, dead-
heading (driving without a load), and even getting the truck washed may be considered using the auto for a
business purpose. Business use would be covered by the motor carrier’s primary liability insurance.
Non-Owned Vehicle Insurance
Non-Owned Vehicle insurance extends the coverage provided under the Bodily Injury Liability coverage and
Property Damage Liability coverage of your policy to any vehicles not owned by you or your business that are
used by any of your employees for business.
A person who is not the primary or principal driver of an insured vehicle is an occasional driver.
On-hook Towing Coverage
On-Hook Towing Liability coverage provides physical damage coverage for a customer's auto or watercraft
while you are towing it. The protection includes damage caused by fire, theft, explosion, vandalism or a
A truck driver who works as an independent Motor Carrier of goods instead of as an employee of one trucking
company is an owner operator. The term can also be hyphenated and written as "owner-operator."
Partnerships are frequently composed of groups of professionals, such as attorneys, accountants and lawyers,
but may also be retail and service businesses.
Permanently Attached Equipment (PAE)
Equipment that is used in the course of doing business and is bolted or welded to an insured vehicle or trailer
is permanently attached equipment. Examples of PAE include:
• Air compressors
• Carpet cleaning equipment
• GPS units (mounted in vehicle)
• Ladder racks
• Lift gates
• Lift kits
• Logging equipment
• Pressure washers
• Snow plows
• Tool boxes
Equipment that is attached to the vehicle and makes the vehicle what it is, such as buckets, cement mixers,
dump boxes, refrigerated boxes, etc., are not considered permanently attached equipment. Permanently
attached equipment should be included when calculating the value of the vehicle for your stated amount.
Personal Injury Protection (PIP) Coverage
PIP is a coverage in which the auto insurance company pays, within the specified limits, the medical, hospital
and funeral expenses of the insured person, people in the insured vehicle and pedestrians struck by the insured
vehicle. Depending on the state, PIP may also cover lost wages and additional expenses.
Physical Damage Coverage
Physical Damage coverage is designed to protect your vehicle. There are several forms of Physical Damage
Coverage, including Collision coverage, Comprehensive coverage and Fire and Theft with Combined
A placard is a metal plaque or other form of signage found on vehicles or trucks that displays a message to
the public regarding the cargo being hauled, such as hazardous, flammable or explosive.
A written agreement between you and your insurance company that details what the company will cover,
contract conditions and provisions and the amount you’ll pay for your coverage.
Policy Expiration Date
Your current insurance policy ends on your policy expiration date, which is found on your current policy
documents, Declarations Page (Dec Page), insurance identification card or recent cancellation notice. This
date should not be confused with payment due dates.
It's also important to note that in many cases, the policy actually expires just after midnight at 12:01 a.m. on
the policy expiration date. This means that as of 12:02 a.m., there is no coverage.
The length of time your policy is active and in force is your policy term.
A premium is the amount of money paid to an insurance company in return for insurance protection. Can be
paid monthly, quarterly, yearly or according to different payment plans that you select.
A primary address is the place where you would like all communications mailed. This is typically your business
Primary Liability Insurance
Primary Liability insurance is Liability coverage for all trucking situations including empty and loaded vehicles.
Primary use is how you mainly use your vehicle. Primary use options include:
• Business use only
• Personal use only
• Personal and business use
• Nonbusiness use
The person who drives the car most often is the principal driver.
Property Damage Liability Coverage (PD)
Property Damage Liability is the second part of Liability Coverage. If an insured person is legally liable for an
accident, Property Damage Liability coverage pays for damage to others' property resulting from the accident.
Property Damage Liability coverage also pays for legal defense costs if you are sued.
Radius of Operation
The maximum distance traveled one way by an insured, from the point of garaging to the point of delivery, is
the radius of operation.
Repossession is reclaiming ownership of an item, such as a vehicle, because payments have not been made.
Towing companies may perform auto repossession work for-hire.
If purchased, this auto insurance coverage will reimburse you for reasonable towing costs and labor costs at
the site of breakdown when a covered vehicle is disabled.
The person or company who is usually the supplier or owner of commodities shipped. Also called consignor,
exporter or seller.
The Single Deductible Endorsement is automatically applied to all vehicles with Physical Damage coverage.
Instead, you are only obligated to pay the highest deductible, while the others are waived.
A sole proprietorship is a one-owner company that is not registered with the state as an LLC or corporation.
The owner of a sole proprietorship is personally responsible for the debts and liabilities of the company and
reports the company's losses and profits on his or her personal taxes.
A series of three numbers (ex. $15,000/$30,000/$10,000), split limits describe the predetermined maximum
amounts to be paid on Bodily Injury Liability coverage and Property Damage Liability coverage per person and
per occurrence or accident.
Example: A split limit of $15,000/$30,000/$10,000 would pay out, per accident, up to $15,000 in Bodily Injury
Liability coverage for each covered person injured in the accident and up to a maximum total of $30,000 for all
covered people injured in the accident. It also would pay out up to $10,000 in Property Damage Liability
A stated amount is the value submitted by the insured as representative of the current value of an insured
vehicle, after accounting for depreciation and including the value of any special or permanently attached
Texas Department of Insurance (TDI)
Is the entity that regulates insurance companies (agencies, independent agents) in the state of Texas. The
State of Texas is part of the U.S. insurance regulatory framework which is a highly coordinated state-based
national system designed to protect policyholders and to serve the greater public interest through the effective
regulation of the U.S. insurance marketplace.
Texas Department of Licensing and Regulation (TDLR)
It is the department in charge of regulating the licenses of businesses in the state Texas.
Texas Department of Motor Vehicles (TxDMV)
The Texas department of Motor Vehicles (TxDMV) is a dynamic state agency dedicated to customer service,
consumer protection and the success of motor vehicle related industries. Each year the agency registers
almost 24 million vehicles; regulates vehicle dealers; credentials buses and big trucks for intrastate and
interstate commerce; issues oversize and overweight permits; and awards grants to law enforcement agencias
to reduce vehicle burglaries and thefts.
Total Insured Value
A property insurance term referring to the sum of the full value of the insured's covered property, business
income values, and any other covered property interests.
Trailer Interchange Agreement
A trailer interchange agreement is a written contract between truckers or trucking companies that provides for
the loan of trailers by the owner to a third party.
Example: Joe's Trucking Company has a trailer interchange agreement with Sue's Trucking Company. Joe
hauls a trailer full of cargo from point A to point B. Sue takes Joe's trailer and hauls it from point B to point C
Trailer Interchange Coverage
Trailer Interchange coverage provides Physical Damage insurance for trailers that you do not own while they
are in your care, custody or control, such as being hauled under a trailer interchange agreement.
Is coupling two or more objects together so that they may be pulled by a designated unit power.
Incident Management (IM). - Any tow of a vehicle in which the tow truck is summoned because of a
traffic accident or to an incident, or any tow initiated by law enforcement.
Private Property (PP). - Any tow of a vehicle authorized by the owner of a parking facility (for example,
an apartment building parking lot, restaurant, paid parking lot) without the consent of the owner or
operator of the vehicle.
Consent tow (CT). - Any tow of a motor vehicle in which the tow truck is summoned by the owner or
operator of the vehicle or by a person who has possession, custody, or control of the vehicle.
Texas Permitting & Routing Optimization System (TxPROS)
Is an online permitting and GIS-based mapping system that allows customers to apply for and self-issue many
permits. It modernizes the routing and permitting of oversize and overweight loads and provides real-time
Unified Carrier Registration (UCR)
Created in 2005, it replaces the former system for registering and collecting fees from the operators of vehicles
engaged in interstate travel.
Any individual in insurance who has the responsibility of making decisions regarding the acceptability of a
particular submission and of determining the amount, price, and conditions under which the submission is
Uninsured Motorist Coverage (UM)
If a driver or owner of a vehicle does not have insurance and is legally liable for an accident, you can use UM
coverage for injuries, including death that you, your resident relatives and occupants of your insured vehicle
sustain, up to the limits that you select.
Underinsured Motorist Coverage (UIM)
If a driver or owner of a vehicle is legally liable for an accident but does not have enough insurance, you can
use UIM coverage for injuries, including death, that you, your resident relatives and occupants of your insured
vehicle sustain, up to the limits you select. In some states, UIM coverage is included as part of UM coverage.
Uninsured/Underinsured Motorist Property Damage Coverage (UMPD)
If a driver or owner of a vehicle is legally liable for an accident but does not have insurance or does not have
enough insurance, you can use UMPD to cover damage to your insured vehicle, up to the limits you select.
UMPD is not available in all states and may be available as an alternative to Collision coverage in others.
United States Department of Transportation (USDOT)
It is a department of the federal government that is responsible for the regulation of transportation in the United
Vehicle Identification Number (VIN)
A VIN is a combination of 17 letters and numbers that can be used to identify the make, model and year of a
car. The Vehicle Identification Number (VIN) for a vehicle is usually found on the driver's side of the dashboard,
the vehicle registration or the title.
Waiver of Subrogation
To waive the right of the claimant to pursue a claim against the responsible party.