What Exactly is Commercial Auto Insurance?
Commercial auto insurance is a type of risk management that helps protect the driver and the vehicle from bodily injury and property damage. This is often required by law for many business vehicles to maintain compliance with state laws.
Commercial auto insurance protects both the company’s vehicle and another party/individual’s property should your company’s vehicle cause an accident. There are three primary types of commercial auto coverage: liability, collision, and uninsured/underinsured motorist coverage. Liability insurance covers injuries or damages you cause to others due to negligence related to your use of a company vehicle. Collision coverage pays for repair costs if your company’s car gets into an accident. Uninsured or underinsured motorist coverage pays you if you are injured in an accident caused by another person’s negligence. If this insurance is available, you may need to obtain a special insurance card to be eligible for these services.
How does Commercial Auto Insurance Protects You?
Before we go into the process of how auto insurance works, it is important to know what it is, and what it isn’t.
Auto insurance provides you with two different types of coverage: liability and physical damage. Liability coverage covers you for all the costs that result from a car accident, like injuries and property damage. Physical Damage coverage is for the cost of repairing or replacing your car if it gets damaged in an accident.
Today, commercial auto insurance helps an individual drive his/her vehicle to do business activities such as transporting goods and people for a profit or running errands for the family on a side hustle. Unlike personal policies which only provide liability coverage, commercial policies also have physical damage coverage to protect the insured from damages caused by collisions with other vehicles and objects.
To qualify for a commercial policy, you must be the owner of a company that is engaged in an ongoing business in an area where the insurer covers auto claims. For example, if your auto insurance is for personal use and you are the sole director of a commercial auto insurance company, then your insurance policy will also cover you for all of your auto claims. This is important because commercial auto insurance is not limited to car accidents only. Any kind of vehicle accident on a public street can also bring about a claim and result in paying for your liability and physical damage coverage.
When Should You Get Commercial Vehicle Coverage?
When you have a business, you need to think about the risks and circumstances that might negatively impact your business. This includes the potential of theft and liability for accidents.
One way to protect your company is through commercial vehicle coverage. When should you get it?
In most cases, commercial vehicle coverage will be necessary if you own more than one commercial vehicle, or if many members of your staff routinely drive personally owned vehicles in the course of their work. If any one member of your staff drives more than 5,000 miles in a month then it is worth checking whether they could be classed as a ‘commercial driver’ - this would mean you would then need additional coverage as well as any personal details they may hold on their license.
You should also make sure that any personal details you hold on your employees are not passed onto third parties, as this could raise any lawsuits, should your employees choose to use their business vehicle for personal reasons.
An In-depth Explanation of the Different Types of Coverage Provided by Commercial Automobile Insurance Policies
Commercial automobile insurance is tailored to meet the needs of owners and operators of non-passenger vehicles.
Commercial automobile insurance policies provide various coverage features that can vary by state. For example, "At-Fault Accident" coverage is required in most states by law. Other features, such as "Uninsured Motorist Coverage," are optional in some states and not at all in others.
Excerpts
"At-Fault Accident" coverage: This type of coverage will typically pay for the cost of damage to your car if you rear-end someone else or cause an accident because you’re driving too close or too fast for conditions, among other reasons. It may also cover expenses related to injuries sustained when you caused an accident that wasn’t your fault (such as hospital and doctor bills, medical services, or moving costs).
This type of coverage will typically pay for the cost of damage to your car if you rear-end someone else or cause an accident because you’re driving too close or too fast for conditions, among other reasons. It may also cover expenses related to injuries sustained when you caused an accident that wasn’t your fault (such as hospital and doctor bills, medical services, or moving costs). Uninsured Motorist
Coverage
This type of coverage is also required by law and typically applies to drivers who are involved in an accident that wasn’t their fault (such as a car crash that someone else causes or a car crash resulting from an improper lane change). It usually covers expenses related to injuries sustained as a result of the collision and may also cover the costs of vehicle repairs.
This type of coverage is also required by law and typically applies to drivers who are involved in an accident that wasn’t their fault (such as a car crash that someone else causes or a car crash resulting from an improper lane change). It usually covers expenses related to injuries sustained as a result of the collision and may also cover the costs of vehicle repairs.
Credit Modification
Coverage allows you to write off or reduce the interest or other payments you make on the vehicle, depending on which of the following applies:
Prior Coverages
When purchasing insurance, you may also purchase policies that provide coverage for different types of accidents or situations. These typically include:
Comprehensive Coverage: If you have comprehensive coverage, you generally need to pay a deductible and premiums for several different types of accidents to be covered, depending on the coverage. In some cases, comprehensive coverage can also cover liabilities related to your commercial vehicle if you’re in a car accident while on a commercial driver’s license (CDL) or commercial general liability insurance.
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