Commercial Auto Insurance – Who Needs This Insurance

Whether you have lots of vehicles for your business or just a few, it’s important to get insurance for them. If you don’t, and something happens like an accident, your business could lose money. Commercial Auto Insurance can help in situations like this.

Commercial Auto Insurance

You need commercial vehicle insurance to protect the cars, trucks, and vans you use for your business. Whether you have a lot of vehicles or just a few, it’s important to have the right insurance to keep your business safe.

What is commercial auto Insurance

Commercial auto insurance is a shield for business vehicle’s liability and physical damage including cars, trucks, and vans. Because these vehicles face more risks than ones for personal use, they need their own insurance policy.

Progressive offers great benefits like personalized policies, good prices, discounts, and excellent help with claims. Get a quote from them to make sure your business vehicles are well protected.

Who Needs Commercial Auto Insurance

Companies that use vehicles for their work usually have to get special insurance. This insurance is for businesses that own or rent cars, trucks, vans, or other vehicles to carry things or people.

People who do certain jobs need special insurance for their work vehicles:

  • Contractors: Builders, gardeners, and other workers who carry tools and equipment in trucks or vans to job sites need this insurance.
  • Delivery companies: Businesses that deliver things to customers using cars or trucks should have this insurance to keep their drivers, vehicles, and cargo safe.
  • Transportation services: Companies like taxis and limousines that carry passengers in cars or vans should have this insurance to protect their vehicles.
  • Food services: Restaurants, food trucks, and catering services that deliver food or cook in mobile kitchens need this insurance for their vehicles.
  • Non-profit organizations: If non-profits use buses or vans to take volunteers or clients places, they might need this insurance.

Remember, regular car insurance usually doesn’t cover work vehicles. If your job needs vehicles, make sure to get special insurance for them.

Types of Commercial Auto Insurance

These are the types of Commercial Auto Insurance

  • Liability insurance.
  • Physical damage insurance.
  • Medical payments coverage.
  • Uninsured/underinsured motorist coverage.
  • Rental reimbursement.

In addition to the basic parts of your business auto insurance, you can also include extra coverage like help when your car breaks down, more extensive towing, protection for car loans or leases, and more.

What Does Commercial Auto Insurance Cover

These are what Commercial Auto Insurance Coverage:

Collision insurance

Collision insurance is a type of insurance that pays for the damage to your car if you crash into another car, if another car crashes into you, or if your car flips over, no matter who is at fault. You might have to get collision coverage if you are financing or leasing your car.

Comprehensive Insurance

Comprehensive insurance helps pay for damage to your car from things other than a crash. This can include things like theft, floods, vandalism, earthquakes, fires, or damage from animals or birds.

Liability Insurance

Liability insurance covers the medical costs and lost wages of others if you cause an accident, as well as the cost of repairing another person’s car. It also helps with your legal expenses if you are sued because of the accident.

Uninsured motorist coverage

Uninsured motorist coverage helps pay for your injuries or damages to your property if you are in an accident caused by a driver who doesn’t have insurance.

Underinsured motorist coverage

Underinsured motorist coverage is there to help you if the person who caused the accident doesn’t have enough insurance to cover all your expenses. It is especially helpful if you live in a state where each driver’s insurance covers their own losses.

What isn’t covered by Commercial Auto Insurance

Commercial auto insurance does not cover:

  • Personal vehicles that are used for work purposes.
  • Rental vehicles that are used for work purposes.
  • Unattached tools and equipment in a commercial truck or van. However, theft and damage to these tools and equipment can be covered under a commercial property insurance policy.
  • Customer vehicles. However, theft or damage to customer vehicles due to issues like severe weather, vandalism, or fire would be covered under garage keepers insurance.

How Much Does Commercial Auto Insurance Cost

The price is normally around $142 per month, but it can change based on things like how much you drive, what you mainly use the vehicle for, if you have employees who also drive, and other factors.

Companies That Offer This Insurance

Here are some companies that offer this Insurance:

  • Progressive Commercial
  • GEICO Commercial Insurance
  • State Farm Business Auto Insurance
  • Nationwide Commercial Auto Insurance
  • Travelers Commercial Auto Insurance
  • The Hartford Commercial Auto Insurance

These Insurance companies’ options are only a few, but there are many other companies that offer Commercial Auto coverage. It’s really important to carefully look into and compare different policies. Then, find the one that fits your needs the best.

Frequently Asked Questions

Is business car insurance tax deductible?

If you use your car mainly for work stuff, not just commuting as an employee, you can usually claim part of your car insurance cost as a business expense. People who work for themselves and use their car a lot for work often do this to lower their taxes.

What is proof of commercial insurance called?

A Certificate of Insurance (COI), also called a Certificate of Liability Insurance, shows that you have insurance for your business. It proves to others like vendors, customers, or landlords that your business is insured. Usually, a COI is just one page long.

Why is commercial auto insurance important?

Commercial auto coverage can help pay for fixing your vehicle after an accident, no matter who caused it. Some policies also cover you if the other driver doesn’t have enough insurance. They may also help with medical bills and legal expenses if you’re sued.

Is commercial insurance the same as auto insurance?

Commercial auto insurance offers greater coverage limits compared to personal auto insurance. Its purpose is to protect your business assets from potential lawsuits and other liabilities.


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