Retail Vehicle – Insurance Associates Agency Inc. Retail Vehicle |
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Retail Vehicle used in Delivery

Typical Retail Delivery Vehicle


In Depth:  What is a Retail Vehicle on a Business Auto Policy

Motor vehicles categorized as a retail vehicle is one of the three distinct types of rate groups used when writing business auto insurance policy. We categorize and rate motor vehicles on a business auto policy using three primary designations: Service, Commercial, and Retail.

When we rate a Retail vehicle on the business auto insurance policy we are rating for the type of use the vehicle normally receives. A commercial vehicle does the work. It either hauls, or works. A service rated vehicle is a vehicle that serves primarily to move manpower and their tools to the jobsite or place of work. A retail vehicle is a vehicle used by retailers in the job of delivering product purchased to their customers. Often, retail rated vehicles are passenger autos, vans, or light trucks. They are not large vehicles. When a retailer uses a large box truck to deliver furniture, this vehicle is rated in our “commercial” vehicle rating category.

An example of when we might rate a vehicle as “retail” in nature is when a drug store has a small passenger vehicle that they use to deliver prescriptions to their clients at their home. One characteristic of “retail” vehicles are that they are used largely in deliver to residences rather than to businesses. Their is no prohibition to rating delivery vehicles that deliver to businesses as a retail vehicle, however. The distinction of a vehicle being a retail vehicle is mostly about generating the appropriate premium for the exposure. In the business auto policy, we are rating vehicles that are used in a commercial venture. Whether they are rated as service, commercial, or retail still fits them all inside the business auto policy.


This information is a general guide and will help you understand why vehicles develop different rates within your business auto policy. Commercial vehicles vary greatly but you shouldn’t worry about how they are classified. That is my job and I’m here to help you figure out how to get the best commercial auto insurance rates for your business vehicles. I have nearly forty years (40) of experience and I can help you make it all make sense. Call or stop by. I’m here Monday through Friday, from nine to five, most days. I offer appointments at most other times by advance appointment.

Note: The image of Oberer’s van is used simply to honor a local business and doesn’t connote a business relationship is maintained.

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