Commercial Car Insurance

What is Commercial Car Insurance?

Also known as business auto insurance, a commercial auto policy protects company-owned and used vehicles in the event of damage. Vehicle damage and driver injuries in cars, trucks, and vans used for business purposes are covered under commercial auto policies.

Personal Car Insurance

In some cases, your personal auto policy will cover you because individual auto policies cover claims relating to personal use. For more info on this, check out our personal car insurance page below.

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Commercial Car Insurance

If you’re driving a client, making deliveries, or hauling your inventory or equipment to an event, your personal auto insurance policy may not cover damages from an accident that happens in those circumstances. Commercial auto insurance typically has higher limits than personal auto insurance because the expected risk is higher.

What does Commercial Car Insurance exclude?

Other Issues

Other issues you may experience may be handled by other types of insurance. If a worker gets hurt during a vehicle accident, their medical treatment would be covered by worker’s compensation insurance, not your commercial auto insurance policy.

Intentional Acts

Intentional acts are typically excluded, as well as high-risk acts. So, if your employee intentionally slashes your company’s tires, that’s not covered. If your employee uses your car in any kind of racing or as part of any kind of war or violent action like an insurrection or rebellion, your commercial auto coverage will not protect you from medical bills, losses, or legal fees associated with that damage.

What is covered under a Commercial Car Policy?

Your commercial auto policy needs to adhere to the requirements set down in your state, so you should read your state or jurisdiction’s laws carefully to make sure your policy fulfills all criteria, so you don’t end up with legal fees or other expenses.

  • Injuries to you, your employee, or the people adversely affected by the incident in the other car
  • Property damage—yours or someone else’s
  • The damage your vehicle sustains due to an incident.

Make sure you understand the limits of your policy to fully understand what is covered.

When might I need additional coverage?

Make sure to specify what your commercial vehicle is used for so you can add on extra protections for things like:

  • Carrying people as part of a taxi, limo, or ride-share service
  • Carrying hazardous material or large equipment that could damage surrounding areas during an incident
  • Towing vehicles
  • Delivering products, publications or food
  • Moving freight and trucking

What types of Commercial Car Insurance are there?

Collision Coverage

Comprehensive Coverage

Liability Insurance

Rental Car Coverage

Un-Insured or Under-Insured Motorist Coverage

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What type of vehicles are covered by Commercial Car Insurance?

Vehicles that you own, hire, lease or use for business purposes can be covered under commercial auto insurance policies.

Typically, this includes:

  • Cars, vans  
  • Pickup trucks, service utility trucks
  • Box trucks
  • Food trucks
  • Semi-trucks, eighteen-wheelers

In fact, having a good commercial auto insurance policy is imperative for companies that use larger trucks.

Do you need Commercial Car Insurance?

Most states require commercial auto insurance, and even in those states, drivers are responsible for the damages they cause. Having auto insurance means your company won’t sink under the cost of medical bills.

Do you:

Use a vehicle specifically tied to your business?

Drive back and forth from worksites?

Carry employees or clients?

Haul equipment, products, or tools used for your work?

Use delivery drivers?

And is your vehicle:

Registered as a commercial vehicle?

Carrying a tag or license plate designating it as a commercial vehicle?

If you've answered yes to these questions, you need commercial auto insurance. Talk to your insurance agent about what types of business auto insurance coverage make the most sense for your company.

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How much does Commercial Car Insurance cost?

Commercial auto insurance costs vary based on things like risk factors, geography, size of company, usage, and foreseeable hazards. You can adjust your cost by tailoring your policy to your exact driving conditions.

How can insurance cost be tailored?

Maybe you regularly store your vehicles in a garage and never park them on the street. You may need less comprehensive auto insurance than if they routinely sat in a parking lot where they could be affected by the weather.

Who's at fault?

If you get into an accident, your insurance company will factor in who was at fault, the total cost of the claim, and what your history indicates your risk level to be. If it was a small fender bender and you haven’t had any accidents in the last five years, your rate may not go up at all. If it was a large claim, but you weren’t at fault, your rate also may not go up. 

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