Commercial Auto Insurance

Regardless of whether your business owns one vehicle or several, you need to purchase a protective and robust commercial auto insurance policy. One of the primary reasons why this coverage is needed is to comply with local financial responsibility laws. All motorists are financially responsible for damages that they create while behind the wheel, and the legal requirement for insurance in many areas is for liability insurance. Liability insurance gives your business the financial means to pay for related expenses if you or your employees cause an accident. Some states have additional insurance requirements. Keep in mind that legal requirements also vary in many areas based on the type of commercial vehicles that are being insured and based on how they are used.

Liability coverage is not the only type of commercial auto insurance that is available to you, and it may not be the only requirement. Some auto lenders require coverage benefits for the vehicle. For example, some may require you to have collision auto or comprehensive auto benefits. These are benefits that specifically are for your own vehicle’s damages. They give you the financial means to pay for a vehicle replacement or repair. Keep in mind that benefits are only available up to the terms of the coverage.

With a commercial auto policy, you may also prefer to have personal injury and personal property coverage added to your policy. Additional coverage options available for some types of vehicles include towing and rental car reimbursement. Because there are so many variations in vehicle types and uses, it is important to understand the requirements that you must comply with as well as the optional coverages that may benefit you before you set up coverage.

It is possible to get blanket coverage on a fleet of commercial vehicles, and this could be more cost-effective in some cases. However, be aware that you may still need to pay an individual deductible on each claim that you file for each vehicle. If your fleet is damaged in a storm, for example, you may be required to pay multiple deductibles in some cases.