Commercial Auto Insurance

How Commercial Car Insurance Helps

Good commercial auto insurance is tailored specifically for vehicles used in the operation of a business. Some will erroneously assume that a standard auto insurance policy will protect them financially should some kind of damage occur to their vehicle(s). However, this is decidedly not the case. This coverage helps to protect a policyholder from liability issues and from expensive repair bills when a commercial vehicle is involved in an accident of some type.

Commercial auto insurance works for all types of businesses that, in some way, need to use vehicles for business operations. It is often required by law too, but is also important to ensure that business owners can deal with the many of the legal, medical, or repair expenses that can crop up from accidents or other perils that a business can face occasionally. Both big and small businesses can benefit by this kind of important protection.

Types of coverage

Liability insurance is what safeguards both drivers and passengers of commercial vehicles so as to enable them to handle others’ medical costs that are a result of accidents and other unexpected loss-causing events by a driver employed by the insured company. Collision coverage for commercial cars protects the business from the financial consequences of repairs to the company car that result from a physical accident with other vehicles or objects. Comprehensive coverage provides protection against any loss that happens to the vehicle resulting beyond from it being driven. For instance, this coverage can compensate for damages resulting from vandalism, fire and severe weather events. Roadside assistance and towing is another option, among many others, for commercial cars.

Big Benefits

Businesses are often counseled to purchase the best commercial auto insurance policies their budgets can afford and, as a result, be rewarded with great 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 utilizes can be included on a commercial auto insurance policy or each car can be covered separately. This means that it’s possible to obtain different types of coverage as needed related to the characteristics of the vehicles and the levels of protection desired by the business owner.

An insurance professional will ask for the specifics on how the business utilizes its vehicles. Aspects considered include whether the vehicle is rented, leased or owned, who is allowed to drive them, and if employees will be driving personal vehicles for business functions. What the insurance agent ascertains from such queries will help determine the kind of coverage needed.