How to Shop for Commercial Auto Insurance?

Commercial auto insurance was created to protect businesses from legal claims of accidents that may occur during the operation of their commercial fleet, or when using personal vehicles for business reasons. This type of insurance is important because it pays for medical expenses, repairs and legal fees that are not covered by personal auto insurances. It also protects you if another driver sues you.

For many businesses, driving on a regular basis is essential for various reasons: meeting clients, transporting supplies etc. If you have a personal car insurance, it will not cover the problems that may occur while driving your business vehicle, so don`t make the mistake to rely on it.

Why your personal car insurance is not enough?

Driving a vehicle for commercial reasons involve additional risks that the insurer is not willing to take when it issues a personal auto policy, so you will not get the coverage you need. You may even have your personal auto policy canceled by your insurer if you make a claim without having commercial auto insurance.

commercial auto insurance coverage

Commercial auto insurance covers any vehicle which is being used for business proposes: cars, trucks, vans etc. It is legally required in almost every state and the minimum coverage requirements are generally the same as those for personal car insurance.

Before shopping for commercial auto insurance, you must determine whether you really need it. If you answer “yes” to the following questions, you must definitely become insured as soon as possible:

Do you have a commercial vehicle? Is it also used by your employees and/ or business partners? Do you use your personal vehicle for reasons related to your business?

Benefits of commercial auto insurance

  • It pays for bodily injury and/ or property damage that you can cause while driving your commercial vehicle
  • It covers medical expenses for you and the other passengers, even if you are at fault
  • It pays for vehicle repair, in case of damage by weather, vandalism or collision with ojects or animals
  • It pays for your damaged vehicle if you are hit by an uninsured driver
  • You get towing and repairs if you vehicle breaks down
  • While your vehicle is in service, you can rent another one and have the renting costs covered by your policy

It is also important to know that commercial auto insurance covers every person who is legally authorized to operate the vehicle with your permission.

If you already own a commercial auto insurance but not a personal auto policy too, you can purchase “drive other car” coverage, to be protected if you also drive a vehicle for personal use. This coverage is almost identical with a personal auto policy.

The higher the limits you purchase the better protection you get. You can combine commercial auto insurance with a business owner policy; purchasing the whole package from the same insurer will likely get you discounts. Alternatively, you can also consider increasing your deductible, as this is a way to pay lower premium.