What is Commercial Auto Insurance? Will all professional drivers need to insure their vehicles with commercial auto insurance?

Commercial Auto Insurance

Companies that rely on motor vehicles to transport goods and services need commercial auto insurance. Business auto insurance covers autos owned and leased by companies, protecting against liabilities in the event of a crash. The coverage features of commercial auto insurance usually depend on the type of vehicles a company uses and the risk associated with the company business and vehicles. This article will explain what commercial auto insurance is, what it covers and how it differs from personal auto insurance.

What is Commercial Auto Insurance?

provides coverage for vehicles used in business operations. It helps to pay for damages caused by an accident, as well as legal fees if an employee is taken to court for a car accident. It can also provide coverage for any medical bills of injured occupants that may come with it.

The type of coverage an auto business requires depends on the scope of the business operations and the vehicles used. is available for a variety of different commercial use cases, such as delivery services, taxi services, ride-sharing, and more.

What Does Commercial Auto Insurance Cover?

Auto commercial insurance typically protects a company from any potential costs resulting from an auto accident, including:

1. Liability Coverage

Liability coverage provides protection when the policyholder’s employees cause an accident while operating company-owned or leased vehicles while performing their job duties. This coverage protects businesses from legal costs related to injuries, property damage, and other medical bills resulting from a crash.

2. Physical Damage Coverage

Physical damage coverage pays for repairs to company-owned vehicles in the event of an accident, vandalism, extreme weather, or theft.

3. Uninsured Motorist Coverage

Uninsured motorist coverage protects businesses from costs caused by an uninsured or an underinsured driver in the event of an auto accident.

4. Medical Payments Coverage

Medical payments coverage helps to pay for medical treatment due to an auto accident. It is usually not a required coverage but can provide added protection for employees who might get injured.

How Does Commercial Auto Insurance Differ From Personal Auto Insurance?

is different from personal auto insurance in that it covers vehicles used in business-related activities. Personal auto insurance covers personal use of a motor vehicle.

Personal auto policies generally do not provide adequate coverage for commercial vehicles such as delivery vehicles, dump trucks, and heavy trucks. Business vehicles may also contain additional equipment that requires a customized policy for adequate coverage.

Also, commercial auto insurance is generally more expensive than a private car insurance policy as businesses are considered to be high-risk, and the cost and liability associated with an auto accident can be significant.

Frequently Asked Questions

1. What is Commercial Auto Insurance?

is insurance which covers vehicles used in business operations, and provides coverage for a variety of different commercial use cases. It helps to pay for damages caused by an accident, as well as legal fees if an employee is taken to court for a car accident.

2. Does Commercial Auto Insurance Cover Theft?

Yes, commercial auto insurance covers theft of a business-owned vehicle. It also provides coverage for any damage to the vehicle that is caused by vandalism or extreme weather.

3. How Does Commercial Auto Insurance Differ From Personal Auto Insurance?

is different than personal auto insurance in that it covers vehicles used in business-related activities, and includes added protections, such as uninsured motorist coverage. Personal auto policies generally do not provide adequate coverage for commercial vehicles, and commercial auto insurance is typically more expensive than a private car insurance policy as businesses are considered to be high-risk.

Conclusion

is an important form of insurance for businesses that rely on motor vehicles to transport goods and services. It provides protection for company-owned and leased vehicles in the event of an accident, including liability coverage and physical damage coverage, as well as uninsured motorist coverage and medical payments coverage. It is important for companies to consider the scope of their operations and their vehicles when choosing a policy, as this will inform the type of coverage that’s needed.

For further information on commercial auto insurance click here. For a commercial auto insurance quote, click here.

You can also compare multiple quotes and coverage options by talking to an American Family Insurance agent. Find an agent near you to learn more.