What Is Commercial Auto Insurance?
Commercial auto insurance is an auto insurance policy designed for the cars, trucks and vans that are the property of a business. These policies can be designed to insure one or two vehicles associated with a small business or the large fleets associated with very large companies.
Who Is Commercial Auto Insurance for?
Personal auto insurance policies do not cover damages when the automobile is used for the purposes of conducting your business. If you were to cause a collision in your automobile while you were performing a business duty, your auto insurance company would deny the claim. For this reason, if you use your vehicle for business, you need a commercial auto insurance policy.
How Does Commercial Auto Insurance Work?
Commercial auto insurance is very similar to your regular auto insurance policy. You will have liability insurance coverage, comprehensive and collision coverage, medical payments coverage and uninsured motorist protection with this policy.
What Are the Different Types of Coverage in Existence?
Bodily injury liability coverage will cover you in the event that you or an employee cause a collision that results in bodily injuries.
Property damage liability coverage will cover any damages that occur in the event that you or an employee cause a collision.
Comprehensive coverage pays for the damages due to vandalism, theft, flood or fire.
Collision coverage pays for damages caused when your vehicle hits another object or is hit by an object.
Medical Payments coverage addresses the medical bills of the driver and passengers involved in a collision.
Uninsured motorist coverage will pay your medical bills and property repair bills if you are hit by an uninsured or hit-and-run driver.
What Are the Major Benefits of Commercial Auto Insurance?
The main benefit of commercial auto insurance is the fact that you will be complying with the law in your state when you have this policy in place. The other benefit is that it protects you and your employees if you are ever involved in a car collision. Without this coverage, you would be personally responsible for the damages that result from an accident that you or your employees cause. It also protects your company in the event that an employee injures someone in your company vehicle.