Understanding Commercial Auto Insurance
Protection in the form of commercial car insurance is created to protect business owners when their vehicles are utilized by those affiliated with the operation of the business or for those who drive for a living. The different kinds of commercial motor vehicles out there include semis, taxis, vans, buses, trailers and the like. In addition, company cars are often put to use by small businesses to make deliveries to their clients. Commercial auto insurance protects these vehicles utilized for commercial purposes, such as towing materials or delivering packages. The options available under this insurance are tailored to the various commercial vehicles that are, for example, meant to accomplish more heavy-duty tasks than non-commercial cars.
Commercial car insurance is employed by any professional who utilizes a vehicle for business-related operations. Normally, such a vehicle is put to work more often and more heavily than a non-commercial car might be, so there are more coverage options available for such categories of protection like collisions, theft and property damage.
Commercial vehicles are more apt to handle heavier weights and receive and cause more damages during accidents than otherwise, so the expense to insure is higher than normal coverage. The insurance company, in return, will assume greater risk when protecting such vehicles.
Keep in mind, however, that commercial vehicle coverage also provides invaluable peace of mind to business owners and is often well worth the extra cost.
The kind of coverage one decides to purchase will depend on the kind of commercial vehicle that is to be financially safeguarded. The first step of coverage is liability, which protects a company from accident-related law suits. Property damage coverage pays out for damages caused to structures and other vehicles. A bodily injury policy pays out for damages that happen to people, such as passengers, other drivers and pedestrians. Carrying this coverage means that business owners can deal with the many legal, medical and repair costs that can arise from accidents or other issues that businesses will face. Both large and small businesses can benefit by this kind of important protection.
Kinds of coverage
Liability insurance is what protects both drivers and passengers of commercial vehicles so as to enable one to handle others’ medical costs that are a consequence of accidents and other unexpected loss-causing events by a driver employed by the covered company. Collision coverage for commercial cars protects the business from the financial loss due to repairs to the company car that result from a crash with other vehicles or objects. Comprehensive provides coverage for anything that occurs to the business vehicle beyond it being driven. For instance, this coverage can compensate for damages resulting from vandalism, fire and severe weather events. Roadside assistance and towing is another choice, among others, for commercial cars. Speak with an insurance professional for more information.
Businesses are often counseled to obtain the best commercial auto insurance policies their budgets can handle and, as a result, can be rewarded with terrific benefits. Again, liability coverage protects companies from litigation that’s connected to the use of company’s vehicles. The company can also receive compensation for vehicle repair or replacement costs.
All vehicles a company uses can be included on a commercial auto insurance policy or it all can be done separately. This means that it’s possible to obtain different kinds of coverage as needed related to the characteristics of the vehicles and the levels of protection preferred by the business owner.
Coverage for equipment breakdowns is engineered for commercial vehicles that often accumulate hundreds of miles of work-related travel weekly. This kind of coverage is vital for businesses that must continue to function while a car is out of commission due to being repaired.
There is also coverage available for trailers, which carry a myriad of heavy loads like other vehicles and equipment for agricultural purposes. Trailer interchange insurance safeguards the policyholder from the theft of goods and also any damage a trailer realizes due to losses resulting from fires, collisions and so on.