Everything You Need To Know About A Commercial Auto Insurance Policy
If you own or manage a business with company vehicles or a delivery fleet, you are going to need a commercial auto insurance policy. Here's what you need to know.
What is commercial auto insurance?
Commercial auto insurance is a type of insurance coverage that helps protect businesses and their employees if they are involved in a car accident. This type of insurance can help cover the cost of repairing or replacing a business vehicle, as well as any medical expenses that may be incurred by employees who are injured in an accident.
How is commercial auto insurance different than personal auto insurance?
Commercial auto insurance is different than personal auto insurance in a few key ways, including:
- Higher coverage limits than personal auto insurance policies
- Cover more than one vehicle
- Protection for business equipment
Additionally, commercial auto insurance offers protection for employees who use their own vehicles for business purposes.
What are the different types of commercial auto insurance?
There are a few different types of commercial auto insurance policies that businesses can choose from, and the type of policy that is right for a business will depend on a number of factors, such as the size of the business, the type of vehicles used for business purposes, and the risks associated with the business. The three main types of commercial auto insurance are liability, collision, and comprehensive.
- Liability insurance is the most basic type of commercial auto insurance, and it covers the cost of damages that a business is legally responsible for after an accident. This type of insurance does not cover the cost of repairing or replacing the business's own vehicles.
- Collision insurance covers the cost of repairing or replacing a business's own vehicles after an accident. This type of insurance is optional, but it can be a good idea for businesses that use their vehicles frequently or that have expensive vehicles.
- Comprehensive insurance covers the cost of repairing or replacing a business's own vehicles after an accident, regardless of who is at fault. This type of insurance is optional, but it can be a good idea for businesses that use their vehicles frequently or that operate in high-risk areas.
Is commercial auto insurance required?
The answer to this question depends on the state in which the business is located. Some states require businesses to carry commercial auto insurance if they use their vehicles for business purposes, while other states do not. It is a good idea to check with your insurance agent to find out if commercial auto insurance is required in your state.
If you are a business owner, it is important to protect yourself and your employees with commercial auto insurance. Contact your insurance agent today to learn more.