Commercial Auto Insurance

Understanding Commercial Auto Insurance

Commercial auto insurance covers trucks, vans or any other autos used for business purposes. If you are an entrepreneur and using your personal cars for business purposes, commercial auto coverage will protect you and the firm against third party claims associated with property damage or bodily injury.

The insurance is needed because certain vehicle types and business usage are excluded from other kinds of auto policies. Such plans are mostly not designed for businesses and are rated and written differently.

What is covered?

This policy will offer similar coverage like collision, liability, medical payments, and comprehensive as well as uninsured motorist coverage. Some differences exist between the commercial and personal coverage. Often, the commercial vehicle coverage may differ in coverage, eligibility, exclusions, definitions, and limits.

Common types of commercial auto coverage include:

Property damage liability coverage – offers protection if a vehicle damages a property that belongs to another person. It will provide a legal defense in most cases.

Body injury liability coverage – this plan pays for death or bodily injury caused by accident when you were at fault. It will also provide legal defense.

Collision coverage- pays for any damages caused to the vehicle when it is hit, or it hits another object.

Comprehensive physical damage plan – covers any damages to the auto from vandalism, theft, fire, flood or any other covered perils.

Medical payments or personal injury policy – it caters for medical expenses for passengers and the driver when an accident happens regardless of the fault.

Who needs commercial vehicle insurance?

You need to get commercial insurance plans in case the company:

Rents, owns or leases autos like trucks and cars.

Have workers who drive their vehicles while conducting business.

Have employees who run rented, leased or owned company vehicles.

Benefits of commercial auto insurance are:

Protects the business equipment

Protects the employee drivers

Helps you meet the requirements of the fleet lease

Commercial vehicle plans will protect you in various ways. Don’t allow the desire to maintain low costs tempt you to avoid having policies for the business vehicles. All these benefits will protect you and the company in one way or the other.