Commercial auto insurance, also referred to as commercial vehicle insurance, is a policy that covers work vehicles and the workers who drive them.
A commercial auto insurance policy can help protect you, your employees, and your work vehicles during a vehicle collision or other covered events such as theft, vandalism, or fire.
If you are deemed at fault in a vehicle collision, commercial auto insurance can help pay for repair costs and medical bills that have affected other parties involved.
All businesses are different and have different commercial auto insurance needs. Whether your business uses a fleet of heavy-duty trucks or one cargo van, commercial auto insurance policies can be customized to fit your business.
If you have employees or business partners that will be driving your commercial vehicles, make sure they have been added to the policy as extra drivers. Your business is simply too important and holding commercial auto insurance is one step you can take to protect your livelihood.
Do I Need Commercial Auto Insurance?
If you use your vehicle for general business operations other than commuting from your home to your office, then you may need commercial auto insurance.
If you deliver goods in your truck or if you conduct a service with your cargo van, then commercial auto insurance is the right option for you. Although it’s easy to assume that any business or any vehicle can be covered under commercial auto insurance, the only way to be sure is to contact your insurance agent and ask about the coverage options available to you.
Contact one of our agents today for a free quote!
What Does Commercial Auto Insurance Cover?
Depending on your policy, commercial auto insurance can help pay for vehicle repairs, legal fees, medical bills, and loss of wages for injuries related to a motor vehicle collision.
It’s important to remember that commercial auto policies may differ among insurers and there are options you may choose in coverages, limits and deductibles.
Am I Legally Required to Have Commercial Auto Insurance?
Commercial auto insurance is required by law in 48 of the 50 states. The two states where this is an exception are Virginia and New Hampshire.
It is important that you research the laws in your state and work with your insurance agent to ensure that you are meeting the minimum auto insurance requirements for commercial vehicles in your state.
What is the Difference Between Commercial Auto Insurance and Personal Auto Insurance?
Commercial auto insurance is used to cover vehicles involved in the daily operations of your small or large business. This type of policy usually has broader coverage than a personal vehicle insurance policy.
Personal auto insurance is used for a vehicle that is not used to generate business but instead for personal reasons like running personal errands, taking the kids to school, going out to dinner with friends, or commuting daily to your work office. This type of policy usually has an exclusion clause for any business use. This means that if you are involved in a car accident while using your personal vehicle for business, then you may not be covered for the accident. It is best to speak with your insurance agent to get informed about what type of insurance you need for your vehicle.
What vehicles can be covered under commercial auto insurance?
Commercial auto insurance can be purchased for a variety of vehicles. The following are common examples of commercial vehicles that can be added to your commercial auto policy:
- Pickup trucks
- Certain box trucks
- Food trucks
- Cargo vans
- Utility trailers
How Much Does Commercial Auto Insurance Cost?
Unfortunately, there is no one simple answer to this question as all businesses have different risks and insurance needs that help determine the price of their commercial auto insurance policy.
There are many factors used to determine the cost of commercial auto insurance, including:
The type of business you own, and the risks associated with it.
The types of coverage that you choose along with the deductible amounts.
The history of the auto insurance claims for your listed drivers.
The policy limit amount.
The vehicle types.
How often are the vehicles being driven.
The number of extra drivers on the policy .
The driving records of your employees who drive your vehicles.
What other insurance might I need for my business?
Commercial auto insurance is not the only insurance policy that can help to protect your business. Yes, your vehicle may be one of the most important assets used to run your business efficiently, but your business relies on more than just your vehicle.
To protect your business from the different risks you may encounter, consider having a variety of insurance coverages, each with a different focus.
Insurance policies like general liability for property damages, inland marine coverage for your equipment, and workers’ compensation for your employees may be the right coverages for your business. Call your insurance agent today to discuss your business needs.
What happens if I need to file a claim?
If you need to file a claim under your commercial auto insurance policy, contact your insurance carrier immediately and provide them with all the necessary information for your auto insurance claim. Your insurance adjuster can provide you with information about the claims process and answer questions about your coverage.
It’s always important that you exchange information with the involved drivers of an accident and share that information with your insurance adjuster. Also, it is important to take photos of the vehicles involved so you can share them with your insurance adjuster. If necessary, you can call the police from the scene of the accident.
What drivers are covered under commercial auto insurance?
Typically, only drivers listed on the commercial insurance policy are covered in a motor vehicle collision. Any employees who drive your business vehicles for work-related operations should be added to your policy as additional drivers.
Unfortunately, accidents happen and if your business requires employees to drive to job sites daily, the chances of them being involved in a car accident can potentially increase.
Are tools and materials in my vehicle covered under a commercial auto policy?
Tools and materials related to your business and transported in your business vehicle are not covered by a commercial auto insurance policy.
Don’t fret! There are other business insurance policies that you can purchase that may help cover the tools and materials.
Call your insurance agent today to discuss your options!
Disclaimer:
Seguros Avanza is the brand name for Infinity Insurance Agency, Inc. This material is for general informational purposes only. The content is provided on an “as is,” and “as available” basis without representation or warranty of any kind whatsoever. All statements are subject to the terms, exclusions and conditions of the applicable policy.