What Is Commercial Auto Insurance For Businesses?

Businesses of many different types find themselves needing vehicles for a plethora of reasons. Whether it is transporting people to places to give talks about their products, organize collaborations, or a wide range of other things, work vehicles and commercial vehicles are becoming more and more common.

If you are a business owner who is curious about commercial auto insurance, what it is, what it covers, and who needs it, General has the information you need right here. Making sure that you have the right amount of coverage as required by law, and the right amount of coverage to suit your needs, is essential. Also, knowing the differences between commercial auto coverage and business auto coverage is vital. If you are a person who drives a company car, a business owner, or someone who is looking to start their own business, having this information is essential.

What Is Commercial Auto Insurance?

Commercial auto insurance provides different types of coverage tailored to businesses and business situations. Auto accident liability insurance, physical damage and collision insurance, medical payments insurance, and coverage for accidents involving uninsured motorists are all part of what commercial insurance is.

Liability insurance in a commercial auto coverage plan helps pay for damages in an accident that you or one of your covered staff persons caused. This includes a range of things, including repair costs to the other person’s damaged vehicle, repair costs for another person’s property, and legal expenses if you are sued due to another driver's injuries, among other things. These types of accidents can cost thousands of dollars, which the business may be responsible for paying if they do not have insurance.

Another type of insurance coverage that is included in commercial auto insurance plans is medical payments coverage. This coverage will pay for your medical expenses if you are injured in an automobile crash. Also, it covers the costs related to medical bills for other passengers in your vehicle caused by a crash. Multiple people using company cars can be covered under one policy, including staff members. Cleaning companies, some food delivery services, home repair staff, and numerous other professions can benefit from commercial auto insurance.

Physical damage and collision insurance coverage are part of commercial automobile insurance as well. This will help protect the company against vehicle theft, as well as physical damage to company vehicles that are listed in the policy. In situations of vandalism, impact with another object, specific weather events, and listed covered situations, this type of plan can help a company save a lot of money.

Uninsured and underinsured motorist coverage also has benefits for business owners and companies. There are a large number of drivers in the United States who do not have insurance or do not have insurance enough to cover significant accidents. When these drivers cause a crash, they are sometimes not able to pay for the damages they have caused. Even though they can be sued, if they do not have the assets to pay for the expenses, you or your company may be covering the bills. Underinsured and uninsured motorist coverage helps pay for these expenses so that your company does not have to. Underinsured and uninsured motorist coverage can cover vehicle repairs, but also medical expenses if needed and in the policy.

What Commercial Auto Insurance Covers

How much your commercial auto insurance plan will cover is dependent on how much coverage is purchased. There are laws pertaining to commercial car insurance plans, but many companies choose to get higher amounts than the minimum limits. This can provide further protection for the company and its finances.

Making sure your company gets adequate car insurance coverage is essential. Companies that do not have a proper amount of coverage can find themselves paying a lot more money in the long run from a variety of types of expenses. Take the time to research your company’s needs before purchasing a policy. Also important is getting multiple quotes from different companies. By comparison shopping, you can find the best prices for commercial auto insurance available near you.

Also, consider the different ways you can save money on your insurance plan. Some companies offer discounts for companies that specifically hire drivers with safe driving records. There are other ways auto insurance policies purchased by companies can be found at lower rates. This includes adjusting the amount of coverage, adjusting the deductibles on a policy, and more. Use the tools at General to get free quotes on auto insurance plans from multiple companies and save. It is recommended to research pricing at several companies each year, as the formulas companies use can change from one year to the next.

What Commercial Auto Insurance Doesn’t Cover

Another vital thing to be aware of is what commercial auto insurance will not cover. The two most significant things on this list include personal vehicles and leased vehicles. Also, vehicles that are not owned by your business may need a separate type of car insurance coverage called hired auto insurance. Also called non-owned auto insurance, these types of plans will help protect you from liability if an employee gets into an accident in a vehicle that is leased or a personal car. If a business uses vehicles that it does not own, this type of policy is recommended. This includes businesses where the employees regularly drive their own cars for work purposes.

Who Needs Commercial Auto Insurance?

Any company that owns vehicles that are driven by staff members should have a commercial auto insurance policy. Commercial automobile insurance can also cover vehicles that are used by your business, though it is vital to make sure you are aware of what your insurance plan covers and that it fits your needs. In some cases, a business may need to purchase an additional rider on their car insurance plan to supplement it.

Commercial Auto Insurance Costs

The costs of a commercial insurance plan for automobiles, trucks, and other work vehicles, can vary due to several factors. Companies that have a staff of people with better driving records could pay lower prices on average than a company that has one or two drivers with poor driving records. The age of the vehicles in a company’s fleet can also have an impact on what they pay for insurance, and there are other variables as well. Due to this, companies should shop around to find the best auto insurance plans and compare rates from multiple companies.

Another consideration is the type of vehicle that is being insured. Commercial cars will generally cost less to insure than a semi-truck, as an example. Other commercial vehicles that businesses are often looking for policies for include delivery vans, cargo vans, taxis, and limousines. For vehicles that are less costly to repair and cost less to replace, commercial vehicle insurance can be as low as $600 annually. For larger, more expensive vehicles that are more expensive to repair or replace, commercial insurance can be up to $12,000 or more annually per vehicle.

Other factors that can be used to determine rates include the vehicle type, vehicle value, the number of vehicles, the number of drivers using the cars, and the average distance traveled by the vehicles. Also included on the list are the types of coverage purchased by the company, coverage limits, deductibles, credit history, the type of cargo a car is transporting, and a company’s loss history.

Commercial Auto Insurance Providers

Numerous companies provide commercial automobile coverage, including Progressive Commercial, The Hartford, AP Intego, Hiscox, and others. Companies like these have strong financial stability. In addition, their customer service and claims service is simple and highly rated. Many companies choose to purchase policies from companies that have a convenient online presence, competitive costs, and other positives.

Progressive is one of the larger auto insurance companies, and many small business owners choose to purchase their plans from Progressive Commercial. Numerous discounts are available through the company, including discounts for bundling policies, paying premiums in full, and safety systems discounts.

The Hartford can be a great program for businesses that have fleets. Using real-time data, The Hartford can help improve safety, which in turn helps people get lower rates through the company. Known for its fantastic customer service, The Hartford is a fantastic place to get a free quote.

Final Notes

General provides the tools you need to get free quotes on commercial vehicle insurance for your vehicle or your company. Compare rates from companies to find the best commercial insurance policies to suit your needs and get the best prices available.