Commercial Auto Insurance

Commercial Auto Insurance

Business whether big or small which uses automobiles or trucks as part of their practice needs commercial auto insurance. For small independent businesses which are working from home and uses their own vehicles, personal automobile insurance is usually considered sufficient. But on the other hand if the business involves transporting people, added business insurance is usually recommended. So it is important to talk to an agent about the exact needs and uses of each commercial vehicle.

Company which has their own vehicle and lent out the vehicles for rent or lease for businesses than the company needs to purchase commercial car insurance. Businesses that have employees use their own vehicles for business use should have liability coverage for those employees but the primary car insurance coverage under those circumstances would be that of the employee. There are certain considerations when purchasing commercial car insurance are:

- Who will be driving the vehicle

- How many people will drive the vehicle

- Who owns the vehicle

- Type and classification of the vehicle

How many vehicles of each type are used by the business

Each vehicle covered under commercial auto insurance needs to cover liability for each driver as well as collision damage and even comprehensive coverage. There are also provisions in policies that help businesses recover the loss of not only the vehicle, but also any additional goods and inventory within the vehicle that are associated with the business. Goods include both cargo as well as tools. Most commercial car insurance policies will cover:

- Bodily injury and liability

- Property damage and liability

- Uninsured and underinsured motorists

- Motor truck cargo

- Medical payments

- Collision (covers damage to vehicle in an accident)

- Comprehensive (covers damage due to theft, fire, or glass breakage)

Different types of policies cover different types of vehicles. Vehicles are classified by some states (for example a tow truck is a different type of vehicle than a passenger van) while others will classify the vehicles based on weight and accordingly commercial auto insurance prices and policies will differ.

There are many choices available in purchasing commercial auto insurance and variations in policies. Some insurance policies include:

- Cargo Coverage – protects inventory during transportation or storage

- Tool and Equipment coverage – protects tools and equipment used in business while on or in the vehicle and at the job.

- Business interruption coverage – protects against loss of income resulting from a covered loss.

- Crime Insurance – protects against loss from theft or burglary even if resulting from an employee.

- Umbrella coverage – provides higher liability limits beyond the primary commercial auto insurance coverage.

- Rental reimbursement – helps provide a rental vehicle for a specified period of time until the commercial vehicle is repaired or replaced.

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