What Is Commercial Auto Insurance and How Does It Work?
The Federal Motor Carrier Safety Administration (FMCSA) reports that in 2015, commercial vehicles were involved in 415,000 crashes.
Although commercial vehicle drivers are typically above-average, they’re still humans, and mistakes happen. Accidents occur for several reasons—speeding, distractions, fatigue. The problem can also be the vehicle—braking problems, tire issues, and the like.
So, what is commercial auto insurance, and how can it help your team navigate accidents? How can it keep your business financially secure if something goes wrong on the road?
Keep reading this guide to have all your questions answered.
What Is Commercial Auto Insurance?
The definition of commercial auto insurance is in the name—it’s much like standard auto insurance, but it’s for commercial vehicles and drivers.
If your business utilizes commercial vehicles—for example, if you run a delivery service—you’d use commercial auto insurance.
This protects your vehicle, your employees, your business, and any other drivers or property involved. It covers property damage, physical damage, liability, and more.
Who Needs Commercial Auto Insurance?
Commercial auto insurance covers vehicles that get used when doing business.
This doesn’t mean the commute to and from work—that’s what personal auto insurance is for. Of course, if your employee travels long distances for work, this may be subject to change.
You, as the owner or operator of a business, insure any company vehicles that perform tasks or duties related to your business.
Some examples would be:
- Food trucks
- Mail delivery services
- Mobile grooming
- Food delivery
- Ride-share services
- Construction vehicles that haul materials
If your business falls into any of these categories (or similar avenues), you’re a candidate.
Types of Commercial Vehicles the Commercial Vehicle Insurance Covers
Commercial auto insurance covers a wide range of vehicles with little to no limitations.
Of course, depending on the vehicle, costs and coverage may change. This is all negotiable through your insurance provider.
Commercial auto insurance can cover fleets, semis, cars, trucks, vans—almost anything with four wheels!
What Does Commercial Auto Insurance Cover?
Depending on your business, this type of insurance covers several things.
Auto Liability Coverage
This type of protection covers the other driver and/or their property that was involved in an accident with your employee.
This policy covers bodily injury liability and property damage liability.
Medical Payment Coverage
If your employee or the other driver needs medical attention, this policy covers medical bills, hospital stays, check-ups, and the like.
Physical Damage and Collision Coverage
This coverage comes in two forms: collision insurance and comprehensive car insurance.
These policies cover damages to your commercial vehicle. For the other car, that’s where the liability insurance would kick in.
Uninsured Motorist Coverage
This coverage is essential in the event that your driver gets into an accident with an uninsured motorist.
If the uninsured motorist couldn’t pay for their damages, this coverage would be necessary.
Your Business Needs Commercial Auto Insurance
What is commercial auto insurance other than the protection you need to run your business?
Simply put, if your company operates with commercial vehicles, they need to be insured. One accident or mistake without insurance could put your business into debt.
We can help make sure that never happens.
Contact us today to get a quote, plus answers to any more questions you may have.
If you are located near Anaheim, CA or Orange County, feel free to stop by our office to get a free commercial auto insurance quote from of our insurance agents.
