Commercial Auto Insurance

Commercial auto insurance is incredibly important to have if you own your own business and have fleet of vehicles requiring auto coverage. Every vehicle in your fleet should have commercial auto insurance, and in order to find the policy that will best fit your needs, shop around at different commercial automobile insurance providers to find the best rates. Not only are you required to insure you vehicles by law, but in the event that one of your vehicles is involved in a collision, you will be held responsible as the owner of the vehicle, no matter who is driving it. It is because of this that so many companies look for the best quotes on cheap auto coverage for their commercial needs.

What is the Difference?

Commercial auto insurance is different from normal auto coverage in several ways. Commercial vehicles are often driven by someone other than the actual owner of the vehicle, so having extensive coverage will protect you, your employees, and your investments in the event of an auto collision. Commercial vehicle insurance covers a wide range of vehicles, and premiums will depend on the vehicle type, and what they will be used for.

For example, if you own a company that transports passengers, your premiums will be higher than if you have own a company where you are hauling products; depending on the product. Transporting people is far riskier for an insurance company to take on because of the lives at stake. When you transport products with one to two employees, your employees are covered, but so is your vehicle and the products you transport. Insuring some products is less expensive than insuring passengers, so your premiums will depend on your business.

There are, however, many companies who have large quantities of freight to haul that can be insured for millions of dollars. If an independent contractor, such as a truck driver, hauls parts for construction equipment that is worth hundreds of thousands of dollars in value, not only will the company require that the driver has liability and comprehensive coverage on the truck, but there must be cargo coverage to insure the cost of any cargo that is damaged or lost in transit. This sort of damage or loss is not common unless there is an accident, or on a rare occasion, theft. The extent to which commercial automobile insurance will cover you, your truck, and your cargo will depend on who is driving and what they are hauling.

Tow trucks transport other people's vehicles, and therefore must have auto coverage that insures the driver of the truck, and the vehicle it is transporting in the event that a collision occurs. Commercial vehicles that transport hazardous or flammable materials require a different level of coverage, as the cargo is more dangerous to drive with, and must be insured in case of an accident where the materials catch fire or spill onto the ground. There are also trucks that transport multiple vehicles, each of which needs to be covered by the business owner's commercial insurance plan. If there are collisions where any of these commercial vehicles are involved, you as the owner of the company or vehicle, are responsible for the coverage that vehicle should have.

Business versus Private

Private vehicles usually require the state minimum for auto insurance to legally drive on the road. Commercial car insurance is required by most companies and by law depending on what the business vehicle is used for. If you operate a company car, the vehicle must have auto insurance that covers the car and the passengers within. Most companies see this as an important and necessary expense and have no regrets about paying for the extra coverage that is involved with passenger transport. Privately owned vehicles of course do not require commercial automobile insurance coverage, but require some form of liability auto insurance to protect other vehicles and passengers in the event of a collision. This auto coverage is different from commercial insurance and is not applicable to vehicles that are used for business purposes.

Commercial auto insurance is used to cover every aspect of business transport. Whether you drive passengers or cargo, you must have coverage that not only covers the vehicles being used, but also covers the passengers and cargo being transported. If drivers operating business vehicles cannot furnish proof of the proper auto coverage in the event of an accident or traffic stop, the owners of the business as well as the employee can face legal action. This is why it is so important to consider the proper coverage for business vehicles. If you are unsure about the coverage you currently have for your fleet, use this website to find reliable companies that can fully explain what sort of auto coverage you need depending on your business, and compare different policies.


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