Commercial auto insurance is a type of insurance that covers vehicles used for business purposes. It provides similar coverage to personal auto insurance, but it is tailored to the specific needs of businesses.
Types of Commercial Auto Insurance Coverage
Commercial auto insurance policies typically include the following types of coverage:
Liability coverage: This coverage pays for bodily injury and property damage to others if you or an employee causes an accident while driving a business vehicle. It is required by law in most states.
Collision coverage: This coverage pays for damage to your own business vehicle if you are involved in a collision with another vehicle or object.
Comprehensive coverage: This coverage pays for damage to your business vehicle from other causes, such as theft, vandalism, and weather events.
Medical payments coverage: This coverage pays for medical expenses for you and your passengers if you are injured in an accident while driving a business vehicle, regardless of who is at fault.
Uninsured/underinsured motorist coverage: This coverage pays for your expenses if you are hit by a driver who does not have insurance or does not have enough insurance to cover your losses.
In addition to these basic coverages, many commercial auto insurance policies also offer additional coverages, such as:
Hired auto physical damage with loss of use coverage: This coverage pays for damage to vehicles that you rent or lease for business purposes.
Auto loan or lease gap coverage: This coverage pays the difference between the amount you owe on your auto loan or lease and the actual cash value of your vehicle if it is totaled in an accident.
Towing and roadside assistance coverage: This coverage pays for towing and roadside assistance services, such as flat tire changes and battery jumps.
Who Needs Commercial Auto Insurance?
Any business that owns or uses vehicles for business purposes needs commercial auto insurance. This includes businesses that own delivery vans, trucks, and company cars, as well as businesses that allow employees to use their own personal vehicles for business purposes.
How Much Commercial Auto Insurance Do You Need?
The amount of commercial auto insurance you need will depend on a number of factors, including the type of vehicles you own or use, the number of vehicles you have, and the risks you face. For example, a business that operates a fleet of trucks will need more liability coverage than a business that only has a few company cars. A good way to determine how much commercial auto insurance you need is to talk to an insurance agent. They can help you assess your risks and recommend the right type and amount of coverage for your needs.