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Commercial Auto Insurance

Guide to Commercial Auto Insurance


Carrying good commercial car insurance for either one van or a whole fleet of vehicles utilized for the operation of a business can often reach the level of necessity for many entrepreneurs. This kind of protection for one’s business can shield it from a myriad of accidents or other issues that lead to some kind of loss. Damages of one kind or another, including that which results from theft or vandalism, can end up being overwhelmingly expensive for those without this kind of protection.

There are four main aspects of the typical commercial auto insurance policy; (Keep in mind that there are other kinds of coverage as well, like towing and roadside assistance):

Liability Coverage- This is what protects one if a company driver is at fault for an accident. The normal coverage that most businesses carry is $1,000,000 for liability protection. This helps shield the business from claims in the event that another party is injured or killed.

Uninsured/Underinsured Coverage- This coverage protects the policyholder from other drivers who are the cause of an accident with the company vehicle when the other driver is either uninsured or underinsured (and therefore unable to compensate the business for any losses sustained). Many who purchase this kind of insurance will obtain the minimum coverage mandated by the state in which he or she operates. Unfortunately, this is often deficient in covering the damage. It may be wise to increase coverage and pay the extra premium for the extra added protection. In such a case as an uninsured driver hitting a company driver, this coverage will be activated when the $100 deductible is paid, usually if the policyholder knows who it was who caused the accident. Conversely, if it is a “hit and run” situation, a $300 deductible may be required.

Comprehensive Coverage- This protects the business from losses resulting from fire, theft, and vandalism of the company vehicle(s). It will compensate for the loss minus the deductible paid.

Collision Coverage- This comes into effect if the commercial driver of the vehicle is the cause of the accident. It will still cover the damage to the business vehicle minus the deductible that was previously selected. Business owners who are seeking lower costs have the ability to choose higher Comprehensive and Collision deductibles in exchange for lower premiums.

Call an insurance agent today to find out more and to obtain important coverage on business vehicles.