Commercial auto insurance is a policy that protects a business from the loss that arises from ownership, maintenance and use of vehicles such as cars, trucks and vans.
Whether it is the delivery of goods, picking up supplies or meeting with clients using your vehicle on the road can be essential to your business.
Commercial auto insurance will cover losses that arise from accidents that may occur when driving for work purposes.
When selecting a commercial auto insurance policy, it is essential to review the risk and coverage that meets your needs to protect your business and income from loss.
Commercial or Personal Auto Insurance
Commercial auto insurance can cover fleets of vehicles or trucks that you rent, lease or own. As a business owner, you may think you are covered under a personal auto policy. Unfortunately, it is not designed for the type of risks that you may face. Most personal auto insurance policies have an exclusion for business use. On the other hand, commercial auto insurance covers your vehicle both for commercial and private use.
What does Commercial Auto Insurance Cover?
Commercial auto insurance typically includes the following, depending on your needs.
- Liability- protects you against lawsuits that may arise from the accident.
- Medical Payment- covers private passengers injured in an accident receive coverage.
- Property Damage- protects against an accident caused while using commercial vehicles.
- Uninsured Motorist-protects you if you are involved in an accident with a driver who has no insurance or low limits. The policy marks up the difference in your liabilities.
What commercial Auto Insurance Does not Cover
- Bodily injury
- Wear and tear
How much Does Commercial Auto Insurance Cost?
The price of a standard commercial auto insurance policy is based on location, the number of vehicles and drivers, driving records, experience and other coverage needs.
Factors That Affect the Cost of Commercial Auto Insurance Premiums
- Amount of coverage
- Anti-theft devices
- Amount of deductible
- Type of vehicle
- Insurance history
Type of cars covered under commercial auto insurance
Any vehicle, that is used for business, should have the commercial auto insurance. It could be for delivering goods and services, picking and dropping employees. It hired or leased vehicles should also be covered.