Commercial Insurance Today

Get an Instant Quote Now

The Facts About Commercial Auto Insurance

What is Commercial Auto Insurance

Many large and small businesses require commercial auto insurance if they use a vehicle such as a truck or car for their regular operations. If you own a small business and use your own vehicle to work at home, you may only need a regular car insurance policy. However, if you regularly drive other individuals during your business, you should purchase business auto insurance coverage. You should talk to your insurance agent about the particular use and needs of your commercial vehicles in order to find the most suitable insurance policy.

What is Covered by Commercial Auto Insurance

A commercial car insurance policy will include comprehensive coverage, collision damage and liability for each driver. Certain provisions will also enable a business to receive payment for the loss of a vehicle, as well as inventory or items stored within that vehicle that are business-related. Such items can include tools and cargo.

The majority of commercial auto insurance policies will cover the following:

Medical expenses
Underinsured and uninsured motorists
Motor truck cargo
Bodily injury & liability
Property damage & liability
Vehicle damage caused by an accident (collision)
Damage caused by fire, glass breakage or theft (comprehensive)
Various Commercial Auto Insurance Policies
You may require a different kind of auto insurance policy, depending on the type of company vehicles you own. Certain states consider business vehicles according to their type. For example, they would rate a passenger van differently than a tow truck. However, other states classify vehicles according to their weight. The type and rate of your commercial auto insurance policy will vary depending on the particular classification of your vehicles.

Here are some of the available options when you buy a commercial auto insurance policy:
Business Interruption Coverage: this will protect you from lost wages from a covered loss
Umbrella Coverage: this option offers a higher liability limit than primary commercial auto insurance coverage
Tool & Equipment Coverage: this will protect your business tools and equipment that are stores in a company vehicle
Rental Reimbursement: this will cover the cost of renting a vehicle if your commercial vehicle needs to be replaced or repaired
Cargo Coverage: this will protect your inventory while in storage or when being transported
Crime Insurance: this will protect you against a burglary or theft, even if it is committed by an employee of your business
When You Should Purchase Commercial Auto Insurance

If you are a business owner that rents, leases or owns a vehicle used by more than one individual in your company, you should buy a commercial auto insurance policy. If your employees drive their own vehicle during business hours, you should ensure you have purchased sufficient liability coverage for each person. However, the primary auto insurance coverage is the responsibility of the vehicle’s owner.

You should consider the following before you buy any commercial auto insurance coverage:

The owner of the vehicle
The classification and type of vehicle
The number of vehicles of each type used in your business
The number of people who will be driving the vehicle
The people who will be driving the vehicle