Commercial Auto Insurance

Understanding Commercial Car Insurance


Good commercial car insurance is engineered for vehicles utilized in the operation of a business. This coverage helps to safeguard a policyholder from liability issues and from costly repair bills when a commercial vehicle is involved in an accident of some kind.

Who Needs It

Commercial auto insurance is designed for all types of businesses that, in some way, need to use vehicles for business operations. It is often mandated by law as well, but is also important to ensure that business owners can deal with the many of the legal, medical, or repair costs that can arise from accidents or other issues that a business can face from time to time. Both large and small businesses can benefit by this type of important protection.

Kinds of coverage

Liability insurance is what protects both drivers and passengers of commercial vehicles so as to enable one to handle others’ medical costs that are a consequence of accidents and other unexpected loss-causing events by a driver employed by the covered company. Collision coverage for commercial cars protects the business from the financial consequences of repairs to the company car that result from a crash with other vehicles or objects. Comprehensive coverage provides protection against anything that happens to the vehicle beyond it being driven. For example, this coverage can pay out for damages resulting from vandalism, fire and severe weather events. Roadside assistance and towing is another choice, among many others, for commercial cars. Speak with an insurance professional for more information.

The Benefits

Businesses are often counseled to obtain the best commercial auto insurance policies their budgets can handle and, as a result, can be rewarded with terrific benefits. Liability coverage protects them from litigation that’s connected to the use of company’s vehicles. The company can also receive compensation for vehicle repair or replacement costs.
All vehicles a company uses can be included on a commercial auto insurance policy or it all can be done separately. This means that it’s possible to obtain different kinds of coverage as needed related to the characteristics of the vehicles and the levels of protection preferred by the business owner.
An insurance professional will asks for the specifics on how the business utilized its vehicles. Aspects considered include whether the vehicle is rented, leased or owned, who will allowed to operate them, and if whether workers will be driving personal vehicles for business functions. What the insurance agent ascertains from such queries help determine the type and levels of coverage needed.

More Details

When reviewing an insurance contract, normally one will see that the vehicle owner will be designated as the “”principal insured.”” In the event that one operates the same vehicle for both business and pleasure, it is important to notify the insurance agent of this detail as it will help one in avoiding potential inconveniences and misunderstandings when a claim is filed. Keep in mind that when one allows another person to drive his or her own vehicle, the owner is liable for damages or injury. It is vehicle owner’s responsibility to be sure that those who may drive the vehicle are has the appropriate driving record. If an accident does happen, the owner will face the consequences of having trusted the wrong person. This means that all damage associated with an accident in this case will be included above and beyond the legal responsibility for the accident.