Finding Great Insurance Benefits

FAQs About Commercial Auto Insurance

If you own a business, you probably have commercial vehicles to move your products or employees. However, purchasing these vehicles can be costly, increasing your overall expenditure. Given the high value of your automobiles, you should protect your investments. Commercial automobile insurance offers the best form of protection. If you want to insure your commercial vehicles, you need to know more about commercial automobile coverage. Here are FAQs explaining various elements of the insurance.

Why Is Commercial Automobile Insurance Necessary?

Commercial auto insurance can help you save money by covering for medical bills and property damage due to a collision. Additionally, the law requires that you have commercial automobile insurance. Each state has a minimum coverage requirement that a business automobile should have. If authorities find you driving without insurance, they can arrest and charge you. Hence, you should get commercial vehicle insurance to save cash and avoid legal problems.

What Are the Commercial Automobile Insurance Coverages Available?

The various coverages are:

  • Collision coverage. This cover accident-related damages to insured commercial automobiles.
  • Liability coverage. This pays for damages to other people's property or injury if you cause an accident, including legal fees if necessary.
  • Comprehensive coverage. This covers damages that your vehicle sustains due to non-collision causes, including vandalism, theft, fire, or weather damage.
  • Personal injury coverage. The coverage pays for medical bills and income loss due to a car collision.
  • Underinsured or uninsured motorist coverage. This covers property or injury damages that the occupants of your commercial vehicle sustained if an underinsured or uninsured driver is liable for the collision.
  • Medical payments coverage. This covers medical bills or funeral expenses for injuries due to an accident, whether you're liable for the accident or not.

These coverages are available for different commercial automobiles, including vans, trucks, buses, and cars. However, they vary across states. In this regard, check with your insurer to ensure that your automobiles have adequate coverage.

What's the Cost of Commercial Automobile Insurance?

The cost of insuring your commercial automobiles varies depending on:

  • Coverage. Each coverage has a unique cost. For instance, comprehensive coverage usually costs more than collision coverage since it offers broader coverage.
  • Automobile value. Insuring high-value automobiles usually costs more than low-value automobiles.
  • Vehicle number. Some insurers offer packages that lower coverage expenses if you insure a group of automobiles under one policy.

These common factors influence insurance cost of your commercial automobiles, but your insurer can tell you the exact cost of the insurance.

These FAQs discuss the importance of commercial automobile insurance, the available coverage options, and the coverage costs. This information can help you purchase insurance for your business vehicle confidently.