Fleet insurance guides, page 2

01Commercial auto and fleet insurance terms, A to L

Plain-English definitions of the words on business auto policies, DMV forms and underwriters' questionnaires, written for California fleets. Fleet insurance terms from M to Z continue on page 3.

A to C

• Actual cash value (ACV). A truck's worth just before the loss, after age, mileage and condition. Most policies settle a total loss this way; see how ACV differs from a stated amount.
• Additional insured. A customer, owner or general contractor added to your policy by endorsement when the carrier approves it, usually because a contract calls for it.
• Any auto (symbol 1). Liability that generally reaches any vehicle used in your business: owned, rented, borrowed or an employee's own car. Compare it with a schedule of listed autos.
• BIT. CHP's Basic Inspection of Terminals program for heavier trucks, larger combinations and placarded loads, whose rules generally call for each covered vehicle to be inspected at least every 90 days. Most two-axle trucks of 10,001 to 26,000 lbs left it in 2025; see BIT and the 90-day rule.
• CA number. CHP's carrier number, issued once a USDOT number exists; DMV treats it as the permit number. See which numbers intrastate contractors need.
• CDL classes. Under DMV's rules, Class C covers two-axle vehicles up to 26,000 lbs. Class B covers one truck over 26,000 lbs or a three-axle vehicle over 6,000 lbs, and Class A a combination of 26,001 lbs or more towing over 10,000 lbs. See where box trucks cross into Class B.
• Certificate of insurance. A one-page summary of your coverage for a customer or landlord. It doesn't change the policy; the forms and endorsements decide what's covered.
• Collision. Typically pays to repair or replace your own truck after it hits something or rolls over, less the deductible.
• Combined single limit (CSL). One liability amount shared by injury and property damage from an accident. We quote from $1 million, and the Vehicle Code calls for at least $750,000 on permitted trucks hauling general freight; see how to choose a liability limit.
• Comprehensive. The other-than-collision side of physical damage, usually reaching theft, vandalism, fire, flood, glass and similar losses. A truck insured for liability only generally has none; see how comprehensive and collision are set up.

D to G

• Deductible. Your share of each physical damage claim, which can be set truck by truck. Test it against your worst year's claim count; see choosing fleet deductibles.
• Endorsement. A dated change to the policy, such as adding a truck mid-term or naming an additional insured.
• EPN (Employer Pull Notice). DMV's program that reports enrolled drivers' records to the employer each year and when they change. The DMV requires it for Class A and B drivers, and it costs $5 a driver plus $1 a report; see how fleets enroll in EPN.
• Garaging. Where a vehicle parks overnight. Carriers usually rate each unit at that ZIP code, which puts a take-home van's rating where its driver lives.
• GVWR and GCWR. The loaded weight a truck is rated for, printed on its door-jamb label, and the truck-and-trailer total. Permits, license classes and CARB rules turn on them, and our focus is vehicles rated 45,000 lbs GVWR and under.

H to L

• Hired and non-owned auto. Liability for vehicles you rent or borrow (symbol 8) and for employees' own cars on company errands (symbol 9). It usually doesn't repair either one; see hired and non-owned auto explained.
• Liability. Generally pays for injury and damage your driver causes to others, plus the defense of the claim. It isn't designed to fix your own truck.
• Loss runs. The insurer's record of your claims, paid and still open, usually for three to five years. Order currently valued copies early; the 120-day renewal calendar shows when.