MONDAY, MARCH 29, 2021
Commercial auto refers to vehicles, or commercial vehicles, that are used for work purposes. This insurance is used by both businesses and individuals to protect against accidents.
Types of Commercial Vehicles
There are many different types of commercial vehicles, most created to carry either cargo or passengers.
Common examples of commercial vehicles include:
-
Passenger vehicles
-
Passenger buses
-
Box trucks
-
Cargo vans
What is Commercial Auto Insurance?
As stated above, commercial vehicles should not (and often cannot) be insured with a personal auto insurance policy. Commercial auto insurance is designed to cover these vehicles and the unique risks they face. Commercial vehicles often face higher risks than personal vehicles, as they transport equipment, cargo, and often frequently travel far distances on busy highways and roads.
All businesses using commercial vehicles should have commercial auto insurance.
What Does Commercial Auto Insurance Cover?
A full coverage commercial auto insurance policy typically includes:
-
Comprehensive Coverage: Comprehensive coverage provides compensation for loss of or damage to the insured vehicle due to fire, wind, hail, lightning, falling objects, theft, vandalism and other incidents not involving collision.
-
Collision Coverage: Collision coverage provides compensation for loss of or damage to the insured vehicle due to collision with another vehicle or object.
-
Liability: Liability insurance compensates for bodily injury and property damage the driver may cause someone else while operating the insured vehicle.
-
Medical Payments: Medical payments coverage helps with medical expenses for the driver and their passengers after an accident.
-
Uninsured/Underinsured Motorist: This coverage provides compensation for expenses related to an accident involving a driver not carrying insurance.
-
Roadside Assistance: Roadside assistance helps take care of trip interruptions such as running out of gas, flat tires and towing.
Are Company Vehicles Commercial Vehicles?
Any vehicle owned or used by the business for work purposes can be considered a commercial vehicle and should be covered under commercial auto insurance.
Most companies that provide company cars also cover commercial auto insurance for the vehicles, so be sure to ask your employer about their policy and the coverage available to you.
Does Commercial Auto Insurance Cover Personal Use?
Although personal auto insurance policies don’t cover commercial use, the same is not true in reverse. Most commercial auto insurance policies cover personal use of commercial vehicles.
If you are uncertain about what insurance you need, speak with an insurance agent to discuss your options.
No Comments
Post a Comment |
|
Required
|
|
Required (Not Displayed)
|
|
Required
|
All comments are moderated and stripped of HTML.
|
|
|
|
|
|
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only.
It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
in your state. By using this blog site you understand that there is no broker client relationship between
you and the blog and website publisher.
|