Understanding Commercial Auto Insurance
In most states, it’s illegal to use your automobile without automobile liability insurance. In fact, collision damage and bodily injury can be very costly to vehicle owners who don’t have an insurance coverage. Businesses or companies that don’t have commercial car insurance coverage for their vehicles are at even greater risk. Regardless of whether you have a fleet of cars or one van for doing deliveries, one road accident can cause you a significant amount of money that might compel you to close shop.
What does it cover?
Commercial vehicle insurance covers the following:
Bodily injury to other people
Collision with other vehicles
Loading and unloading damage
Towing and labor
The features of commercial car insurance
If your vehicle is used for commuting and perhaps running some business-related errands, the insurer may consider it for a commercial car insurance policy. In other words, if your vehicle is used for more than just typical commuting it can be considered a commercial vehicle.
Get the right coverage
There are certain considerations that you need to make in determining the right coverage suitable for your vehicle. Is the vehicle leased or owned? Is it under your name or the business name? Is the vehicle used for commuting only or for running business operations? Who drives the vehicle?
As a business owner, you should prioritize getting the right commercial auto insurance instead of focusing on finding the cheapest. Some of the factors that affect the cost of your insurance include but not limited to your business’s location, business type, the type of business vehicles you own, the driving history of your drivers, and the amount of coverage you require for the vehicles. You need to evaluate these factors carefully because they can increase or decrease your premiums significantly.