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Auto

Definition

Auto — as the term is currently defined in Insurance Services Office, Inc. (ISO), commercial auto and commercial general liability (CGL) insurance policies, any land motor vehicle, trailer, or semitrailer designed for travel on public roads; or any other land vehicle that is subject to a compulsory or financial responsibility law or other motor vehicle insurance law where it is licensed or principally garaged. The term "auto" does not include "mobile equipment." This definition is important in determining whether liability coverage is afforded under an auto liability policy or a CGL policy (in the case of mobile equipment).
Links for IRMI Online Subscribers Only: CAI Motor Vehicle Statutes, Business Auto Definitions

Related Terms

Mobile Equipment

A term that is defined in both the commercial general liability (CGL) and commercial auto policies. It refers to equipment such as earthmovers, tractors, diggers, farm machinery, forklifts, etc., that, even when self-propelled, are not considered automobiles for insurance purposes (unless they are subject to a compulsory or financial responsibility law or other motor vehicle insurance law). Liability arising from mobile equipment is covered in the general liability policy. Physical damage coverage is usually provided by an "equipment floater."

Motor Vehicle

A term, commonly used in vehicle registration and financial responsibility statutes, that is generally defined to mean a device capable of transporting people or property and is self-propelled by mechanical or electrical power. However, state "motor vehicle" definitions usually contain a list of exceptions of the kinds of vehicles that do not qualify—for example, vehicles that are not designed for use on public roads, vehicles propelled solely by human power, bicycles, motorized wheelchairs or other electric personal assistive mobility devices, farm tractors, implements of husbandry, motorized bicycles, mopeds, snowmobiles, all-terrain vehicles, motor scooters, and vehicles running only upon rails or tracks. Each state's "motor vehicle" definition must be examined closely to see what types of vehicles qualify and what types do not. Any nonexempt vehicle that qualifies under a state statutory definition of a "motor vehicle" may be subject to that state's licensing, registration, and/or financial responsibility laws.

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