Commercial Auto Insurance

Information on Commercial Car Insurance

Commercial vehicle coverage is specifically engineered for cars, vans and trucks that are used in the operation of a business. It covers the policyholder from liability issues and from expensive repair bills when a commercial vehicle is damaged in an accident or one is injured, among other protections.

Who Needs It

Good commercial car insurance can be offered for all kinds of businesses that utilize vehicles in any way. Not only is it required legally, it is important for the protection it affords to business owners in avoiding unnecessary legal, medical, or repair expenses. Businesses both large and small can benefit greatly from this type of policy coverage.

How it Functions

A business auto policy is somewhat similar to a personal policy. As with normal car insurance, the company will need to first determine what types and levels of coverage they need. Once this is done the business then purchases the policy of choice. The insurance company will give the business owner a contract to sign and then coverage soon starts. The policyholder then is required to pay the premiums until the time comes when a claim needs to be filed. This is accomplished in accordance with the procedures of the insurance company. The insurance company will then contact the insured with help on how to proceed.

Types of Coverage

There are two main kinds of commercial car insurance coverage. The most usual is “per vehicle” insurance, which is usually bought by small to medium sized companies. Larger firms often find 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 simultaneously. This is not the same as the per vehicle insurance policy. Per vehicle insurance means that an individual policy must be obtained for each vehicle used in the conduct of business. All of the employees that use that particular car must be put on the policy.
Businesses that choose the best commercial auto insurance policies are given many benefits. They will have liability coverage should someone litigate against them due to an accident that occurs with company vehicles. The company will also receive payment for vehicle repair costs. Note that many insurance companies prefer to pay directly the mechanic shop providing the repair work.

Big Benefits

Commercial auto insurance is designed very specifically for vehicles used in business and it provides invaluable protection from liability. It also provides a company protection from repair costs after a company vehicle is damaged. Taking advantage of the best policy that is allowable for your business’s budget can be a very smart move for businesses.