A Typical Service Vehicle on a Business Auto Policy

DEFINITION OF SERVICE VEHICLES

In Depth: Business Auto Insurance Policies

Service vehicles are one of three distinct types of rate group categories used on writing business auto insurance. We categorize and rate commercial vehicles on a commercial auto policy using three primary designations: Service, Commercial, Retail.

Service vehicles on a commercial auto insurance policy are vehicles that are normally not involved in doing work. Instead, service vehicles carry men, some equipment and tools, and supplies to and from work sites. If you make sales or service calls, you are probably operating a vehicle we will rate under the “service” category. As a contrast, a route sales person driving a large truck delivering water to an office is considered a commercial vehicle because the truck is carrying the product being sold. In other words, it is the truck that is doing work. A Service vehicle is typically a smaller, lighter truck, similar to pickups, vans, and similar vehicles. Typically large vehicles are rated as commercial vehicles. There is no weight limitation to a service vehicle but they usually will not weigh over 4 tons.

Exceptions come to mind. For example, an exception is often granted to service vehicles that are temporarily used to perform snow plowing. Ordinarily a snow plowing vehicle would be a vehicle rated in the “commercial” category because it is doing work but, in this case the primary role of the pickup truck is as a service vehicle. In some states the temporary use as a snow plow is permitted for an additional charge. If the plowing (alternate use) is less than 20% of the total use, most companies will accommodate the extra work done by the truck without rating the vehicle in the “commercial” vehicle category.

I’m here to help you figure out how to get the best commercial auto insurance rates on 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.