The short version
- State minimums are low: Washington requires $25,000 per person, $50,000 per accident, and $10,000 property damage; Idaho requires $25,000, $50,000, and $15,000.
- Businesses usually carry far more: $1 million combined single limit is a common commercial auto limit and a common umbrella requirement.
- The umbrella follows the auto schedule. If your auto limit is lower than the umbrella requires, you pay the difference.
- Employees' own cars are a hidden exposure. Hired and non-owned auto covers the business when employees drive personal or rented vehicles for work, and the umbrella sits on it only if it is in the underlying auto policy.
- Trucking has its own rules: interstate for-hire carriers of general freight in vehicles of 10,001 pounds or more need at least $750,000 under federal rules.
Minimum auto limits
| Washington | Idaho | Federal (interstate for-hire, general freight, 10,001+ lbs) | |
|---|---|---|---|
| Bodily injury, per person | $25,000 | $25,000 | |
| Bodily injury, per accident | $50,000 | $50,000 | |
| Property damage | $10,000 | $15,000 | |
| Combined single limit | $750,000 | ||
| Source | RCW 46.29.090, 46.30.020 | Idaho Code 49-117 | 49 CFR 387.9 |
Washington household goods movers registered with the Utilities and Transportation Commission must carry at least $300,000 combined single limit for vehicles of 10,000 pounds or less and $750,000 for heavier vehicles (WAC 480-15-530). Hazardous materials carriers need more under federal rules.
The three kinds of auto exposure
| Exposure | Coverage | Umbrella |
|---|---|---|
| Vehicles the business owns or leases | Commercial auto | Covered above the auto limit |
| Vehicles the business rents or borrows | Hired auto | Covered if hired auto is in the underlying policy |
| Employees' own cars used for work | Non-owned auto (covers the business, not the employee's car) | Covered if non-owned auto is in the underlying policy |
The employee's personal auto policy pays first in a non-owned auto claim, often at state minimum limits. When it runs out, an injured party's lawyer looks to the business, which is where non-owned auto and the umbrella come in.
Lining up auto and umbrella limits
| Check | Why |
|---|---|
| Auto limit equals or exceeds the umbrella's requirement | Otherwise you pay the gap |
| Every vehicle is scheduled or covered on a symbol that includes it | New vehicles not added can fall outside |
| Hired and non-owned auto is included | Employees driving for work are common and often overlooked |
| Every named insured and LLC that owns vehicles is listed | Vehicles titled to an entity not on the policy are uninsured above and below |
| Renewal dates line up | A lapse in auto can leave the umbrella without underlying coverage |
Reducing fleet risk (and umbrella cost)
- Check motor vehicle records before hiring drivers and annually after.
- Set written driver standards and a policy on phone use while driving.
- Consider telematics and dash cameras.
- Keep vehicles maintained and records of it.
- Limit who may drive company vehicles, including family members.
See what drives umbrella cost and commercial auto insurance.