Private passenger automobiles, trucks, and specialty vehicles owned or leased to partnerships and corporations must be insured under what?

• A. Business Auto Policy
• B. Personal Auto Policy
• C. Fleet Insurance Policy
• D. Mechanical Break-Down Policy

Answer: (A)

Vehicles owned or leased by partnerships or corporations are considered commercial autos, so they’re insured under a commercial auto program rather than a personal policy. The Business Auto Policy is designed specifically for business use, providing liability coverage as well as physical damage coverage for the owned or leased autos. It can also be endorsed to include additional coverages relevant to a business fleet.

A Personal Auto Policy is intended for individuals and private-use vehicles, not for vehicles used in a business; it typically excludes business use. A Fleet Insurance Policy is a form of commercial coverage used when a company has many vehicles, but it falls under the broader commercial auto framework (often issued as a Business Auto Policy with fleet-specific endorsements). A Mechanical Breakdown Policy covers only mechanical failures and does not address liability or physical damage to other vehicles, so it doesn’t fit the purpose here.