Commercial Auto Insurance

Let’s Talk Commercial Car Insurance

Good commercial auto insurance is specifically engineered for vehicles utilized in the operation of a business. It helps to protect from liability issues and from expensive repair bills should a commercial vehicle be involved in an accident, along with other protections that are also offered.

Who It Helps

Commercial auto insurance can be tailored to all kinds of businesses that use vehicles in any way. Not only is it mandated legally, it is necessary to ensure that business owners avoid paying out-of-pocket costly legal, medical, or repair costs. Businesses large and small can make great use of this kind of a policy.

How It Functions

The business auto policy is similar in some ways to a personal auto policy. As in typical car insurance, the company first determines what kinds of coverage it will need and the subsequent levels of the coverage as well. Once this is done, the business then purchases the policy of choice. The insurance company will give the business a contract to sign to then begin coverage. Coverage starts only when the contract is signed. The policyholder then simply pays the premiums consistently and on time until the time arrives in which a claim needs to be filed.

Types of Coverage

There are two main kinds of coverage of commercial auto insurance. The most common is “per vehicle” insurance, which is usually obtained by small to medium sized companies. Larger firms will learn it to be more cost-effective to buy fleet insurance. A fleet insurance policy is a comprehensive policy that provides coverage for all the vehicles and drivers in a company at once. This is not the same as the per vehicle insurance policy. Per vehicle insurance is an individual policy that must be obtained for each vehicle used in the operation of the business. All of the employees that use that particular car must be named on the policy.
Businesses that opt for the best commercial auto insurance policies will enjoy many benefits. They will have liability coverage should someone take legal action against them that is related to company vehicles. The company will also receive payment for vehicle repair costs. Note that many insurance companies prefer to pay directly the mechanic doing the repairs.

Big Benefits

Commercial car insurance is designed very specifically for vehicles used in business and it provides terrific protection from liability. It also gives a company protection from repair costs after a company vehicle is damaged. It is wise to take advantage of the best policy that is allowable for your business’s budget.