Auto Insurance Glossary – X Y Z Definitions

Your Covered Auto

A term which is defined in personal auto policies for the purpose of identifying those vehicles in respect of which coverage applies under the policy, and those for which it does not. ‘Your covered auto’ means (1) any vehicle listed in the Declarations page of the policy; (2) a newly acquired auto (itself a defined term); (3) any ‘trailer’ you own (also a defined term), and (4) any auto or trailer you do not own, provided it is being used temporarily in place of any vehicle described in (1), (2) or (3) above for the reason that the vehicle is not in normal use due to its breakdown, repair, servicing, loss or destruction. In addition, ‘your covered auto’ does not apply in respect of (4) above for collision and comprehensive coverage.

Zone Rating

A system, based on zones, for applying premium ratings for commercial vehicles which routinely operate outside a 200-mile radius from their principal place of garaging. The premiums are applied to bodily injury, property damage, medical payments, collision and comprehensive coverage. There are 50 zones defined nationwide (not correlating with state boundaries). Premium calculations are complex, involving the determination of zone combinations based on the principal place of garaging and the terminal to which the commercial vehicle operates. Additional factors include the determination of a primary rating classification, whether the vehicle is part of a fleet or not, PIP credits if applicable, deductibles and special rating factors.