Commercial Auto insurance applies to accidents or losses in all of the following locations, EXCEPT:

• A. USA
• B. Canada
• C. Mexico
• D. International waters

Answer: (C)

Commercial Auto insurance is designed to cover vehicles used for business purposes, providing protection against accidents, property damage, and liability. However, its coverage typically extends only within the territories of the United States and Canada.

In the context of automobile insurance, Mexico poses unique challenges due to differing regulations and coverage requirements, leading many insurers to limit or exclude coverage in this region. As a result, accidents or losses occurring in Mexico are often not covered under standard Commercial Auto insurance policies.

International waters, on the other hand, generally don't apply to vehicles covered under Commercial Auto insurance, as these policies pertain specifically to land vehicles and their designated operational areas. Thus, such scenarios would not fall under the remit of this type of insurance, contributing to the focus on the primary exclusion being Mexico for this question.