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How Commercial Auto Insurance Quote Works?

How Commercial Auto Insurance Quote Works?

Commercial auto insurance protects the vehicles you use for business, such as cars, trucks, and vans.Whether your business fleet is large or small, you'll need to insure the vehicles you use for work.

Company cars, commercial trucks, and vans are examples of business vehicles.Other vehicles that can be covered by commercial auto insurance include box trucks and food trucks.

What exactly is Commercial Automobile Insurance?

Commercial auto insurance policies takes care of insurance amounts and usage that personal auto insurance policies do not cover.If you are driving a car for work and have an accident, your personal insurance company will not pay the claim.

Here are some scenarios in which you may require commercial auto insurance:

  • The car is a company car that is only used for work.
  • You drive a car, van, or truck for work and transport goods or people.
  • You use your vehicle to provide a business service.
  • In a commercial vehicle, you transport tools or equipment.
  • Your employees drive a company vehicle.
  • The company owns the truck or van.
  • High liability insurance limits are required.

Related: Top Commercial Auto Insurance Providers

What Is Commercial Auto Insurance?

Commercial auto insurance, like personal auto insurance, covers liability,medical payments,collision,personal injury protection,comprehensive and uninsured motorists.

Commercial auto insurance, on the other hand, differs in terms of who is eligible, coverage, exclusions, and limits.

Here are some of the benefits of a commercial auto policy:

Bodily injury liability compensates you for injuries you cause to another person.

Property damage liability compensates you if your vehicle causes damage to another person's property and you are legally liable.Property damage liability, like bodily injury liability, pays for your legal defense if you are sued as a result of the incident.

Instead of two separate limits, Combined single limit (CSL) liability insurance handles one overall limit for property damage and bodily injury claims against you.

Medical payments and personal injury protection (PIP) cover medical expenses incurred by you and your passengers in the event of an accident covered by the policy.In no-fault insurance states, PIP is required.

Collision insurance covers damage to your own vehicle caused by another vehicle or object.

Comprehensive insurance covers damage to your vehicle caused by fire, flood, theft, vandalism, and other specific issues.

Uninsured motorist (UM) coverage compensates you and/or your passengers for injuries sustained if you are hit by an uninsured driver or someone who has auto insurance but not enough to cover all of your medical bills.In some states, you can also purchase uninsured motorist coverage, which pays
for damage to your vehicle as a result of an uninsured driver that drove the vehicle.

Insurance for Commercial Vehicle Tools and Equipment.

Because they are not considered part of the vehicle, unattached tools and equipment on a commercial van or truck are not covered by commercial auto insurance.A business property insurance policy can cover theft and damage to tools and equipment.

Who Is Commercial Auto Insurance Cover For?

A commercial auto insurance policy covers drivers such as company employees, family members, and others.If a person frequently drives a commercial vehicle, they should be added to the commercial auto insurance policy.

What is the difference between hired and non-owned auto insurance?

Personal vehicles or rental vehicles used for work are not covered by a commercial auto insurance policy.Consider the "hired and non-owned auto insurance" if employees occasionally use their personal cars for work errands or rent your work vehicle.

This coverage pays for liability claims made against your company that involve a vehicle that the company does not own.For example, if an employee causes a car accident while driving to work, the
victims may sue your company.These situations are covered by both hired and non-owned auto insurance.

Farmers Introduces Commercial Auto Insurance Based on Usage.

Farmers Insurance has introduced FairMile, a new usage-based commercial auto insurance product in Washington state.Business owners will be able to choose per-mile insurance pricing through the
FairMile program.This could be especially beneficial for small business owners who do not use their work vehicles on a regular or seasonal basis.

FairMile bases the premium on the actual miles driven in each business vehicle.Each month, insurance premiums are adjusted to show the actual miles driven.

Customers who sign up for FairMile will receive a telematics plug-in for each of their commercial vehicles.The FairMile program also includes the FairMile app, which provides drivers with actual mileage reports, detailed trip summaries, and other necessary data.

Farmers discovered that 33% of its business insurance customers were likely to use telematics technology, and 75% said they would use telematics technology if it simply meant more savings on their insurance policy.

Advice on Purchasing Commercial Auto Insurance

Are you looking for commercial auto insurance? Mr.Dave Hynek, who happens to be the general manager of commercial lines marketing with Acuity Insurance, offers some nice purchasing advice.

Get adequate coverage.
Make sure you have enough commercial auto insurance coverage to cover what you might lose if your company is sued in an accident.

First and foremost, you'll want to ensure that your insurance policy covers the full scope of your exposure to protect your business and yourself, including limits and coverages,"says Hynek.

Speak with an agent.
Don't be afraid to seek the assistance of an insurance agent.According to Hynek, an agent can assist you in identifying the right policy for your business, including specific commercial auto coverage for the type of work you do.

Include coverage for uninsured/underinsured motorists.Do not overlook this coverage when purchasing a commercial auto policy.

The "Uninsured/underinsured motorist insurance coverage will enable you to pay for damages caused by a driver who lacks auto insurance or has insufficient limits."If you are injured or your truck is damaged in a collision caused by such a driver, this coverage will help pay for the costs, up to the limits of your policy," says Hynek.

Investigate the insurance company.
Take the time to research the insurance company you want to use for your commercial auto insurance.

"Many business owners make the mistake of assuming that all insurance carriers are the same and focusing solely on price."While price is an important consideration, business owners should also look at
independent surveys or online review sites to see how well they perform when it matters," Hynek says.

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