Commercial Car Insurance: What To Consider for Your Business
Auto insurance comes in a variety of flavors, and one of them is commercial auto insurance. This insurance is a form of business insurance that covers the cars that are owned by your company and protects you from claims for negligence due to accidents involving your company’s vehicles. It also covers inhabitants of your company’s vehicles who are wounded in accidents. If your company has automobiles, a commercial auto insurance coverage can safeguard both you and your staff when operating a business vehicle, as well as a rented or individually-owned vehicle during the course of your business activities. It’s crucial to understand that an individual car insurance coverage often does not protect automobiles used in the course of your job. So, without further ado, here is what you need to consider for your business when looking at commercial car insurance!
What Coverage Does Commercial Auto Insurance Provide?
Commercial auto insurance covers a multitude of worrisome areas for most business owners. This coverage can include liability damages, medical costs for any involved in an accident, and damages incurred by both automobiles in the case of an accident. Besides this, more expensive coverage policies can provide coverage for a number of other activities that you might encounter, such as delivery and towing insurance.
Actual damage protection for cars you own, lease, rent, or use in your business is provided by the business auto insurance, as well as general liability insurance for physical injury and property damages caused to others by the use of the covered automobiles. There are two types of coverage that you can use for your business vehicles:
- Collision injuries: Covers the destruction or loss caused by car accidents.
- Total loss: Covers weather-related damage, vandalism, and other non-person damages.
Commercial insurance also comes with two forms of liability insurance:
- Bodily injury coverage: Covers collision-related injuries for other drivers when it is your fault.
- Property damage coverage: Protects you against destruction to another’s belongings, such as a house or car, caused by an accident in which you are at fault).
How To Know If You Need Commercial Auto Insurance
If you already own, lease, rent, or use vehicles for the company, you need to have liability insurance at the very least. In most areas, it is required for privately owned vehicles. Furthermore, commercial auto insurance is required by federal law for firms that transport products or persons across state boundaries. Commercial truck insurance coverage may be required for bigger vehicles such as commercial trucks.
In terms of commercial auto insurance, you need it for cars that are used for business, those that carry a commercial or government license tag, or those that are simply registered as commercial vehicles in other situations. You can also carry commercial auto coverage if your employees use the vehicles for other work-related tasks, such as driving clients to and from the airport, going on calls to customers, or even taking packages to the post office.
Even so, it is important to know that in some situations, you may be required to get extra auto insurance. Some of these situations include acting as a taxi service, delivering food, and towing vehicles, among a whole other multitude of activities. If you are planning on doing any “abnormal” activities with the business car, be sure to ask your insurance provider about anything that you might need to know.
How Does Commercial Auto Insurance Work?
Automobiles used for company operations and the persons who operate them are covered by commercial insurance coverage.
They can submit a request on your insurance and try to charge you or a driver of your business vehicle if you or a motorist of the business vehicle hits a pedestrian or destroys their assets. Even at the policy maximum, your liabilities policy will protect the expenses of paying penalties. Any losses in excess of the limit will be your or your company’s responsibility. Apart from the limits specified, your liability insurance will cover the expenses of defending you or the driver of your business car in any accident-related lawsuit.
Is Personal Use Covered by a Commercial Policy?
A business coverage will usually cover personal usage of a corporate car. Family members, on the other hand, are frequently left out of the media. Consult your provider to see whether you require additional insurance for household use. If you do, it may be worth it to investigate the cheapest rate on your own time. In every case, taking the time to shop around is a great way to ensure that you get the best rate possible.
How Can You Purchase Commercial Auto Insurance?
An insurance agent that is independent from your company can help you get commercial vehicle insurance at great rates with little to no hassle. They’ll spend some time learning about your firm’s management and car usage in order to locate the best coverage at the best price. When an event happens, your broker will also assist you with the claim procedure.
Using a single agent for all your business insurance needs will assist in guaranteeing that your company is well-protected and that you aren’t overpaying for redundant coverage. When you take this simple piece of advice, you might find that the process for gaining commercial auto insurance is a lot easier and less expensive than you may have previously thought.
How Much Does a Policy Cost?
Policies can range in cost based on a few different factors. Some of the most common factors include business size, the number of vehicles you need insured, and even the number of employees. Besides these factors, some insurance policies can factor in a number of different metrics. For this reason, it is imperative for you to understand that a policy cost is a moving target that depends on the characteristics of your company, as well as on the company’s history. As such, it is in your best interest to shop around for a policy that truly benefits you.
We hope you have enjoyed our recap of what to consider for your business in terms of commercial car insurance. If you are looking for good commercial vehicle car insurance plans, be sure to reach out to Serenity Group today!
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