Commercial auto insurance is a policy that covers for liabilities not catered in a personal auto policy. It’s a type of insurance policy that will cover liability for amounts and situations to protect your business’s vehicles. In some circles, the policy is also referred to as fleet insurance, truck insurance, or commercial car insurance.
Who Needs It
If you’re operating a business where you use trucks, vans, and cars for pickup or delivery of goods such as materials, supplies, newspapers, or Pizza etc., you’ll need commercial auto insurance. Furthermore, if you use a vehicle for commercial purposes, a standard auto policy may not cover damages in the event of an accident. Therefore, as a business owner or manager, you need the coverages of a credible commercial car insurance.
Types of Coverage
Liability insurance is what ensures that drivers and passengers of commercial vehicles are covered so as to have the ability to pay for medical costs that result from accidents and other loss-inducing events. Collision coverage for commercial vehicles covers the business from the financial consequences of minor and major fixes to the car that stem from an impact with other vehicles or objects. Comprehensive coverage is what gives protection against anything that happens to a vehicle that is not related to it being operated by a driver, like damages caused by vandalism, fire, and severe weather events. Roadside assistance and towing is another option in the myriad of coverage offerings for commercial vehicles.
There are some differences between personal and commercial vehicle insurance policies. These policies have different exclusions, coverages, and limitations. However, they are similar when it comes to what is covered on collisions, medical bills payments, liability, and uninsured motorist coverage.
What are the benefits of commercial car insurance?
Coverage for property damage– it protects in situations where your vehicle damages another person’s property.
Coverage for bodily harm or injury- provides you protection in situations where an accident for which you’re at fault causes another’s injury or death.
Medical payments- it pays for the medical expenses of the passengers who were in your vehicle when the accident occurred, regardless of fault.
Coverage for collision- pays for the damages done to your car when it hits or is hit by another object/vehicle.
Coverage for physical damage-pays for damages due to vandalism, theft, fires, or any other perils.
IMPORTANT: Insurance companies cannot pay for damages caused to your business car when filing a claim using your personal car insurance. But, you can purchase proper covered by contacting our team of professional agents.
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