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Commercial Auto Insurance: How can I Determine if I Need to Purchase

Commercial auto insurance: How can I determine if I need to purchase commercial auto insurance?

Commercial Auto Insurance

When it comes to running your own business, commercial auto insurance can provide essential protection if you own vehicles that are used in the course of your business. It’s important to understand the differences between commercial and personal auto policies, so that you can be sure your business is adequately protected.

What is Commercial Auto Insurance?

is a type of insurance policy designed to cover cars, trucks, vans and other vehicles used in the course of conducting business. This type of insurance will cover any vehicles owned by you, as well as any vehicles used by your employees. It also typically provides coverage for medical expenses, property damage and liability.

What Does Commercial Auto Insurance Cover?

covers any business-owned vehicle and typically provides protection for:

    • Bodily Injury Liability – Offers coverage if you or your employees are responsible for another person’s injury or death


    • Property Damage Liability – Protection when you or an employee of your business causes damage to another person’s property


    • Medical Payments – Helps cover medical expenses incurred by drivers or passengers of your business’ vehicles


    • Comprehensive Physical Damage – Covers damage to your business-owned vehicles resulting from incidents other than collision (e.g. theft, fire or vandalism)


    • Collision Coverage – Covers damage to business-owned vehicles resulting from collisions.
Commercial Auto Insurance
Commercial Auto Insurance

What Type of Businesses Need Commercial Auto Insurance?

Any business that owns vehicles used in the course of doing business needs commercial auto insurance. This includes companies that use vehicles to transport goods or personnel, like delivery businesses, construction companies, agricultural operations, business-owned recreational vehicles, and motor-vehicle repairs. Even businesses that don’t own any vehicles may need commercial auto insurance if they occasionally rent or lease vehicles for business purposes.

Frequently Asked Questions (FAQs):

How much does commercial auto insurance cost?

The cost of commercial auto insurance can vary depending on the type and usage of the vehicle, the size of the business, and the state’s minimum insurance requirements. On average, a basic commercial auto insurance policy can cost around $1,000 per year.

Do I need commercial auto insurance if I’m an independent contractor?

Yes. If you are an independent contractor who uses a vehicle for business purposes, you should get commercial auto insurance. This type of insurance provides more protection than personal auto insurance and will cover any business-related liabilities.

Does commercial auto insurance cover personal use?

No. only covers vehicles used in the course of business. If you use a business-owned vehicle for personal use, such as running errands, you may need to purchase a personal auto insurance policy that provides additional coverage.

Bottom Line: Get the Protection Your Business Needs with Commercial Auto Insurance

If you drive any vehicles for business purposes, commercial auto insurance can provide essential protection. This type of insurance coverage offers protection against third-party liabilities, as well as damage to company-owned vehicles. Start researching and comparing commercial auto policies today and get the protection your business needs.

For more information about commercial auto insurance and how to get the best coverage for your business, contact one of our expert insurance agents.

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