Commercial Auto Insurance
Auto Insurance Information
The Basics of Auto Insurance
Commercial Auto insurance shields your business from financial loss in the event of a collision, accident, or theft. It is an agreement between you and your insurance provider, in which you pay the premium and the insurance provider pays your losses as detailed in your policy.
Commercial Auto Insurance coverage options include property, liability and medical expenses:
- Property: covers repairs, replacement or theft of your car.
- Liability: covers your legal responsibility to third parties for property damage or bodily injury.
- Medical expenses: covers medical costs, rehabilitation, lost wages and, in the worse cases, funeral expenses.
Why is Commercial Auto Insurance Important?
Your business depends on vehicles every day as an essential part of operations. Road conditions, weather, and distracted drivers are often beyond your control. Because of this, you need a commercial automobile insurance policy to help protect your business in the event of an unexpected accident. The financial protection that a Commercial Auto policy provides is important because:
- If you’re in a wreck or your vehicle is stolen, it can cost a lot of money to repair or replace it.
- If you or any third parties are injured in a crash, medical expenses can be very costly.
- If you or your vehicle is responsible for property damage or injury to third parties, you may face an expensive lawsuit.
- All states require you to have at least liability coverage, though laws and regulations vary.
What to Discuss With Your Agent
Before buying a Commercial Auto policy, be prepared to discuss the following with your independent insurance agent:
- The type of business you operate, and the specific risks that are present in your industry.
- The types of vehicles your company owns.
- The employees that will be driving your vehicles, and their driving records.
- Where are the vehicles garaged?
- Do employees drive their personal vehicles for work?
- Do you ever rent, lease, hire, or borrow vehicles for work?
- The current limits you carry on your commercial vehicles.
- The insurance provider’s reputation for customer service and ability to pay claims.
- The responsiveness of the Insurance Agency staff when it comes to generating certificates, processing policy changes, and managing claims.