ACORD 23 form Vehicle or Equipment Certificate of Insurance

ACORD 23 Form Your Document Guide

The ACORD 23 form, the Vehicle or Equipment Certificate of Insurance, is an essential document in the insurance industry that provides proof of insurance coverage for vehicles or equipment. Lenders, leasing companies, and other stakeholders often require this form to verify that insurance is in place for specific vehicles or equipment.

Accurately completing the ACORD 23 form is critical to ensuring smooth transactions, such as leasing agreements or equipment financing, and guaranteeing that all parties have the necessary information regarding insurance coverage.

Whether you're an insurance agent, broker, or equipment owner, mastering the completion of the ACORD 23 form is vital. This guide offers tips and best practices to help you fill it out efficiently.

Why is the ACORD 23 Form Important?

Proof of Insurance: The ACORD 23 form formally documents that a vehicle or equipment is insured. In leasing or financing transactions, it is typically required to protect the interests of lenders, lessors, and other parties by verifying that the insured asset has the necessary coverage.

Standardized Format: The form consistently and clearly presents insurance coverage details for vehicles and equipment. This standardized format helps all parties understand the coverage without needing to review the entire policy.

Facilitates Transactions: An adequately completed ACORD 23 form is often required for leasing, financing, or rental agreements, making it a critical component in ensuring that vehicles and equipment are adequately protected.

How to Fill Out the ACORD 23 Form

1. Date and Producer Information:

• Action: Start by entering the date the form is completed. Include the name, address, and contact details of the insurance producer (agent or broker) issuing the form.
• Tip: Ensure the producer’s contact information is accurate and up-to-date to facilitate smooth communication with all parties involved.

2. Insured Information:

• Action: Enter the name and mailing address of the insured, which is the individual or entity that owns the vehicle or equipment being insured.
• Tip: Double-check that the insured’s name matches the leasing or financing documents precisely to avoid discrepancies.

3. Insurance Company Information:

• Action: Provide the name of the insurance company providing the coverage. This section confirms which insurer is underwriting the policy.
• Tip: Include the NAIC (National Association of Insurance Commissioners) code if available, as this helps identify the insurance company accurately.

4. Description of Vehicle or Equipment:

• Action: Provide a detailed description of the vehicle or equipment being insured, including make, model, year, VIN (Vehicle Identification Number), or serial number for equipment.
• Tip: Ensure all details are correct and match the leasing or financing documents to prevent any issues with coverage verification.

5. Policy Information:

• Action: Provide detailed information about the insurance policy, including the policy number, effective date, and expiration date. Also, indicate the types of coverage provided, such as liability, physical damage, or comprehensive coverage.
• Tip: Double-check the policy number and dates, as errors can delay processing transactions or claims.

6. Coverage Description:

• Action: Clearly describe the specific coverages provided by the insurance policy, including coverage limits for liability, physical damage, and any additional endorsements.
• Tip: Outline all coverage types and limits clearly to ensure that all parties, especially the lender or lessor, fully understand the extent of the insurance protection.

7. Deductibles:

• Action: Indicate the deductibles for each type of coverage, which is the amount the insured must pay out-of-pocket before the insurance company pays a claim.
• Tip: Clearly state the deductibles, as this information is crucial for the insured and the lender or lessor to understand their financial responsibilities in the event of a loss.

8. Special Conditions or Endorsements:

• Action: Note any special conditions or clauses that apply to the policy, such as additional insured or loss payee clauses.
• Tip: Highlight any particular conditions affecting coverage or the lender/lessor’s interest in the vehicle or equipment to avoid misunderstandings.

9. Certificate Holder:

• Action: List the entity receiving the certificate, such as a lender, lessor, or other interested party, ensuring their interest in the insured vehicle or equipment is protected.
• Tip: Verify the certificate holder's correct name and address with leasing or financing documents to ensure an accurate listing on the form.

10. Signature and Date:

• Action: An authorized insurance agency representative must sign and date the form. This signature certifies that the information provided is accurate and that the insurance coverage is active.
• Tip: Ensure that an authorized individual, such as a licensed insurance agent, signs the form to validate the insurance evidence.

Additional Details to Consider While Filling Out the Form

Verification of Coverage: Before submitting the form, verify that all details, including coverage limits, effective dates, and endorsements, align with the actual insurance policy. This helps prevent issues during claims processing.

Loss Payee Clause: Ensure that the loss payee clause meets the lender’s or lessor’s requirements. This clause is critical for protecting their interest in the vehicle or equipment and ensuring they receive payment in case of a loss.

Equipment Description: Provide a thorough description of the insured vehicle or equipment, including any unique features. This is particularly important for specialized or high-value equipment.

Policy Limits Review: Confirm that the policy limits meet or exceed the lender’s or lessor’s requirements. Many lenders or lessors require specific minimum coverage amounts to approve financing or leasing.

Compliance with State Regulations: Ensure the form complies with state-specific insurance regulations, which may dictate specific requirements for evidence of insurance.

Examples of Coverage Selections for the ACORD 23 Form

Liability Coverage Scenarios

• Bodily Injury Liability:
  • Driver causes an accident, injuring another person
  • Multi-car collision resulting in injuries to several people
  • At-fault accidents where passengers in other vehicles require medical treatment
• Property Damage Liability:
  • Driver damages another person's vehicle
  • Collision with roadside structures (guardrails, light posts, fences)
  • Damage to buildings or other property resulting from vehicle operation

Medical Coverage Scenarios

• Medical Payments:
  • Driver or passengers require medical treatment after an accident
  • Emergency room visits following a collision
  • Physical therapy treatments needed after accident injuries
• Personal Injury Protection (PIP):
  • Lost wages due to injuries from an accident
  • Extended medical care following serious collision
  • Rehabilitation services needed after an accident

Uninsured/Underinsured Motorist Coverage Scenarios

• Uninsured Motorist Bodily Injury:
  • Hit by a driver with no insurance
  • Victim of hit-and-run accident
  • Accident with driver whose insurance has lapsed
• Underinsured Motorist Bodily Injury:
  • Collision with a driver whose coverage limits are too low to pay all damages
  • Serious injury accident where at-fault driver has minimum state requirements
  • Multiple injury accidents where at-fault driver's insurance is insufficient
• Uninsured Motorist Property Damage:
  • Vehicle damaged by an uninsured driver
  • Property damage from hit-and-run incident
  • Vehicle repair needs exceeding at-fault driver's coverage

Physical Damage Coverage Scenarios

• Comprehensive:
  • Vehicle stolen
  • Fire or flood damage
  • Vandalism or malicious damage
  • Animal collision (deer, etc.)
  • Falling objects (tree branches, hail)
  • Glass breakage
• Collision:
  • Single-vehicle accident (hitting a tree, pole, etc.)
  • Rollover accident
  • Multi-vehicle collision
  • Damage while parking or backing up

Additional Coverage Scenarios

• Rental Reimbursement:
  • Need for temporary transportation while the vehicle is being repaired
  • Extended repair periods requiring long-term rental
  • Replacement transportation after total loss while seeking a new vehicle
• Towing and Labor:
  • Vehicle breakdown requiring towing to repair facility
  • Roadside assistance for flat tires or battery issues
  • Lockout services
  • Emergency fuel delivery
• Gap Insurance:
  • The vehicle is totaled, but the loan/lease balance exceeds the actual cash value
  • New vehicle depreciation creates a "gap" between value and amount owed
• Drive Other Car Coverage:
  • Driving borrowed vehicles
  • Using rental cars
  • Temporary use of vehicles not listed on policy
• Hired & Non-Owned Auto Liability:
  • An employee using a personal vehicle for business purposes
  • Company renting vehicles for business use
  • Employees driving clients' vehicles

Commercial-Specific Coverage Scenarios

• Hired Auto Physical Damage:
  • Damage to rental vehicles used for business
  • Collision with a rental truck during business operations
  • Theft of or vandalism to temporary business vehicles
• Garage Keepers Coverage:
  • Customer vehicles damaged while in business's care
  • Fire in garage damaging stored customer vehicles
  • Theft from premises where customer vehicles are kept
• Motor Truck Cargo:
  • Damage to goods being transported
  • Theft of cargo during transportation
  • Cargo affected by vehicle collision or accident

Closing Comments

Accurately completing the ACORD 23 form is essential for providing precise and reliable evidence of insurance for vehicles or equipment. Fill out each section thoroughly to protect the interests of the insured, the lender, the lessor, and any other parties involved. If you are still determining any form section, consult your insurance agent to ensure it is completed correctly.

Before submitting, double-check the form for accuracy and completeness to avoid transaction delays or issues with coverage verification. By following this guide, you can ensure that the ACORD 23 form effectively serves its purpose in leasing, financing, or rental transactions.

Download the ACORD 23 Form

[Link to download the ACORD 23 Vehicle or Equipment Certificate of Insurance Form as a PDF]

Download other ACORD forms

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• ACORD 125 form
• ACORD 80 form
• ACORD 27 form
• What is ACORD