If you use your vehicle for business purposes, you probably have to have commercial auto insurance. This coverage protects you in the event of a car accident and also covers employees who drive rented cars for company business. However, not every policy covers all types of business use, so make sure you understand the difference between the two. Listed below are some of the most common types of commercial auto policies. Here are a few things to consider when purchasing your next commercial auto policy.
A common exclusion is the use of someone else’s property. This means that you cannot drive an employee’s personal vehicle, as well as their car. But there are policies that will extend the coverage for other types of cars or property. For example, if you have a fleet of delivery trucks and want to add medical payments coverage, you can add this endorsement to your policy. To do this, contact your insurance agent. He will then add the endorsement.
A commercial auto insurance policy is separate from your personal auto insurance policy. You may be able to bundle your commercial policy with a personal policy. Many insurers offer bundled policies for businesses. An independent agent can assist you in determining which type of business insurance is best for your needs. Additionally, many consumer auto insurance brands offer commercial policies. Using a single agent will help you find the right coverage for your business, and avoid paying for redundant coverage.
While commercial auto insurance is similar to personal auto insurance, it can have a broader scope of coverage. Liability coverage pays for bodily injury claims, property damage claims, and medical payments. Other types of coverage can include collision coverage, which covers your vehicle if you cause an accident with another vehicle or a pedestrian. Comprehensive coverage, on the other hand, pays for injuries to occupants of a vehicle. It’s important to understand the differences between these two types of coverage.
Generally, liability insurance is the minimum requirement. If you have more than one vehicle, you should look for commercial truck insurance as well. Commercial auto insurance covers a wide range of expenses, including medical costs, lost wages, legal fees, and funeral expenses, if the accident results in a fatality. For this type of insurance, it’s important to remember that the terms and conditions will vary depending on the type of business you have.
Depending on the type of business, you may need to purchase higher policy limits. Generally, commercial auto insurance policies allow limits as high as millions of dollars. Similarly, deductibles play a big role in determining premiums. High deductibles lower the premium, but will increase out-of-pocket expenses. A commercial auto insurance policy’s price will depend on your coverage, so you should strike a balance between cost and coverage.
If you’re a small business owner, you may want to look for a commercial auto insurance policy that covers all of your vehicles. This is especially important if you have employees who drive company vehicles. Depending on the size and type of your business, commercial auto insurance will have different costs than a typical policy. As such, it’s important to get several quotes before selecting an auto insurance policy. This way, you’ll be able to compare the different plans and choose the one that’s best for your business.