What does Fleet Automatic mean? Read on to discover the definition & meaning of the term Fleet Automatic - to help you better understand the language used in insurance policies.
In automobile insurance, provides physical damage coverage automatically to all newly acquired automobiles owned by the insured. Premium charges for these automobiles are made through either a reporting form or an audit at the end of the policy period. The term was used before the advent of the business auto coverage form when a physical damage endorsement was added to the commercial auto liability policy to afford such coverage. Two versions of the endorsement were available: fleet automatic and nonfleet automatic. The business auto policy (BAP) equivalent to physical damage fleet automatic is covered auto symbol 2, 3, or 4.
We hope the you have a better understanding of the meaning of Fleet Automatic.