Commercial auto insurance, also known as commercial vehicle insurance, covers damages to vehicles that are frequently used for business activities. A private vehicle has significantly fewer risks than a commercial one; using the regular auto coverage for cars used to run work errands is an inadequate form of coverage. A personal auto insurance policy does not offer liability coverage for this type of vehicle.
You do not have to run a large-scale business before you buy this policy. If you run a small or medium enterprise and use your private car to carry out your business, buying this insurance is the best option. Commercial auto insurance has a significantly high coverage limit than the standard auto insurance policy.
The coverage of this policy depends on the specifications of your business. Here is a list of coverages under commercial auto insurance:
If your workers get hurt or die while driving for a work assignment, the commercial auto insurance will kick in to cover the costs of repair and replacement of the car. It also provides for the medical bills to treat the injuries of the driver and passengers in the vehicle at the time of the accident. If your business gets sued for damages after an accident, this coverage will also pay for the legal fees.
Comprehensive and Collision Coverage
The comprehensive policy covers a myriad of damages to your vehicle, including theft, vandalism, flood, fire, and adverse weather. It also includes repair costs for collisions with an object or automobile.
No-fault or Personal Injury Protection
The No-fault or personal injury protection ensures that the employer can claim the hospital bills of the driver and passengers in an accident, regardless of whether they caused the accident due to negligence.
Uninsured Motorist Coverage
If you get into an accident with an uninsured or hit-and-run driver, this covers costs of repair and hospital expenses. It also takes effect when the other driver is underinsured and has insufficient coverage to pay for the costs.
When Do You Need Commercial Auto Insurance?
Here are some instances when buying commercial auto insurance may be the best option for you:
1.Designated driving – If you drive people around and get paid for doing so, regular auto coverage isn’t sufficient
2.Transport items such as heavy tools or equipment for work purposes
3.Delivery services – this includes food and package deliveries
4.Chauffeuring– If you run a limousine service or taxi service
5.Taking real-estate clients to see different listings
6.Taking tourists to various attractions
7.Transporting flammable or hazardous materials
This is what you need to know about commercial auto insurance. If you need help with your personal or commercial insurance coverages, our experts at Gant Insurance Agency in McKinney, TX, are here to assist you. We can help you find the right coverage for your situation.