Commercial auto insurance is necessary to protect your business from unanticipated costs in the event that you or an employee is involved in an accident.
Whether you own a single work truck or a small fleet of delivery vehicles, your business auto insurance policy can provide coverage for:
Claims-related costs for emergency care
- Medical bills
- Property damage
- Damage to your automobile
- Legal expenses
- Gap protection for financed and leased automobiles
When you purchase a new policy from, you may add coverage for rented and non-owned vehicles. This coverage provides additional protection when you or an employee rent a vehicle or when an employee occasionally uses their own vehicle for work.
Personal auto versus commercial auto insurance
You may already possess a personal auto insurance coverage. Nice. However, it is unlikely to cover accidents that occur while you are driving for business purposes.
If you use your vehicle for business purposes, you may require commercial auto insurance if you:
- Deliver any commodity, including pizza, flowers, and more
- Offer a service that requires the regular use of a vehicle
- Carry work-related equipment, such as cleaning or landscaping tools.
- Go to job sites
Why is Commercial Auto Insurance so essential?
Whether your vehicle is crucial to your daily operations or something you just use sometimes, you need a business-specific auto insurance coverage.
- You may be compelled to carry commercial auto insurance by law.
The majority of states mandate that vehicles owned by a business be covered for specific types of accidents with commercial auto coverage. The majority of states mandate liability insurance for bodily injury and property damage.
Some states additionally mandate coverage for uninsured/underinsured motorists and medical payments (also known as personal injury protection).
The sorts of vehicles your business uses, how they are used, and who operates them will influence the specifics of the insurance coverage you require.
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Commercial auto insurance can provide extra protection
If you’re like the majority of business owners, you probably blur the line between work and home.
Even if you simply have one automobile for all of your transportation needs, driving for business exposes you to different risks than driving for personal purposes. You may require the more comprehensive coverage offered by commercial auto insurance.
If you have workers who drive your vehicles, your commercial auto insurance policy can extend coverage to them up to the policy’s limitations.
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Commercial auto insurance can aid in customer acquisition
Commercial auto insurance is a must for your clients as well. Having enough auto insurance displays your company’s readiness for the unexpected. You are aware that things may not always go according to plan, but your clients can rest assured that they will continue to receive reliable service.
What is the cost of Commercial Auto Insurance?
The monthly cost of commercial auto insurance can range from $62.5 to $250, based on your insurance history, the number of vehicles you own, the vehicle type, and how the vehicles are used.
The best approach to determine the cost of a policy for your business is to obtain a free online quotation for commercial auto insurance. You will only need to respond to a few questions to receive a quote in less than 10 minutes.
Common factors that affect the price of a commercial auto insurance policy include your claims and insurance history, the number of vehicles your business insures, the type of vehicle, and how you intend to use it.