Why Commercial Auto Insurance is Necessary for You

Why Commercial Auto Insurance is Necessary for You

Why Commercial Auto Insurance is Necessary for You

Automotive Article

30 July 2019

Why Commercial Auto Insurance is Necessary for You

Commercial auto insurance is a policy that covers the expenses of vehicle damages used by your business. Coverage includes bodily injury and third party liability for property, and it also contains first-party coverage such as collision and medical payments. Insurance is beneficial for both small and large business owners. It offers several coverages for both third and first-party damages. Costs of commercial auto insurance policies are usually higher than personal auto insurance policies.

Why Commercial Auto Insurance is Necessary for You
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Some states even require business owners to have liability coverage if they use vehicles for their business. However, it depends on an owner if he wants to add property damage coverage, injuries coverage, and protection against expenses, for example, collision, medical payments, underinsured, and uninsured motorist.

Here is a guide what Commercial Vehicles Insurance Covers

It includes the liability coverage for a third party’s property damage or bodily injury when an insured driver is at fault in a vehicle accident. Some policies also allow business owners to add first-party coverages, such as property damage, medical bills, and collision.

1.      Payment of Medical Bills

Commercial vehicle insurance covers the medical expenses of your insured driver. It depends on the choice of business owner that which policy he selects. Some insurance companies allow their clients to add both first and third party coverage in their plan.

2.      Collision

It is the first party coverage that pays the cost of a replacement automobile if it is damaged in an accident. It also covers the event of a collision with another object like a collision with any wall or building.

  • Payment for animal collision: personal auto insurance may not pay for collision from animals. The best advantage of commercial is that it handles expenses like collision also. The coverage may include crushed fender, broken mirror, and windshield
  • Payment for fire damages: Most insurance policies don’t cover the damage occurs due to fire in a vehicle while damages caused by fire also covered in this type of insurance.
  • Payment for weather damage: commercial auto insurance will also pay for the damages caused by the weather. For example, if your vehicle is damaged by any rock carried by the wind, due to flood, or if a tornado picks up your car and smash it miles away.

3.      Liability

Commercial vehicle insurance provides coverage to your business if your driver or you is at fault. If you or your insured driver found liable for an accident, liability coverage pays for the repair bills and medical expenses, lost wages, legal fees, and funeral charges.

4.      Comprehensive

This coverage helps to pay for the replacement or repairs of insured vehicle if it is damaged in an accident or any event other than collision. For example, if your car is damaged in a natural disaster. It covers the events including fire, falling objects, damage from theft. Comprehensive coverage also pays to replace your damaged or stolen vehicle.

5.      Things You Should Consider Before Buying an Insurance Plan

There are many companies which offer different policies of insurance for vans, trucks, cars, or any other vehicle used for business purposes. There are always chances for accidents, and that is why insurance is required by law.

There are many insurance policies, but you should pick the one which you feel more comfortable or useful for your business. Before getting any insurance plan you should consider the following things

  • Determine the cost of an insurance policy and compare it with other plans. If you want a cheaper insurance policy, then keep one thing in mind that it does not cover all the damages.
  • Determine whether your business needs insurance or not.
  • Ask your insurance agent how many cars and drivers they will cover.




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