Essential Coverage of Commercial Auto Insurance in California

Why Do You Need Commercial Auto Insurance?

If you have a small or big business, it is important to have Commercial Auto Insurance. If you own one or more business vehicles and you use them as part of your day-to-day operations, you’re at a high risk of potential lawsuits, legal problems, and property damage. It covers your liability if you or your employee is negligent in an accident when driving for work purposes. 


Commercial Auto Insurance can cover the costs of property damages, injury, and liability claims. It also protects your commercial vehicle’s repair from an accident or incident caused by severe weather conditions. Most states require businesses to have a minimum amount of Commercial Vehicle Insurance. If you have several vehicles, it is just right to insure them properly by purchasing business auto policies.

Commercial Auto Insurance

Typical Coverage

For small business owners who want to purchase commercial auto insurance, they will have policies similar to Personal Auto Insurance. Even so, there are some coverage options that are under commercial auto insurance such as coverage for rented vehicles.  Your commercial auto policy consists of different types of commercial auto coverage. You will need to choose the coverage amounts that match your needs in protecting your business. Here is a list of some of the most common coverage options.

  • Property Damage protects you if someone’s property is damaged in an accident for which you’re at fault.


  • Collision Coverage pays for the expenses related to an accident regardless of who is at fault.


  • Bodily Injury Liability provides financial assistance such as medical fees for someone injured in a car crash for which you’re at fault.


  • Personal Injury compensates for lost wages and medical expenses if you, your employees, or passengers got injured.


  • Uninsured or Underinsured Motorists cover you and your family when you are hit or run by a driver who doesn’t have insurance.


  • Comprehensive pays for the repairs to your vehicle as a result of severe weather conditions, theft, or vandalism.

When Do You Need Commercial Auto Insurance?

Determining whether you need commercial car insurance can still be confusing. Review the following sentences and check whether the statements are right for you. You will need commercial car insurance if you/your:

  • Use a car to conduct a service such as a taxi service or other types of transportation.
  • Transport goods such as supplies or food items.
  • Employees or drivers operate your company car.
  • Equipped your vehicle with tools that haul a heavyweight to run your business.
  • Sold or leased your vehicle to a partnership or corporation
  • Transport flammable or hazardous materials

When Do You Need Commercial Auto Insurance?

  • Employee Injuries: Worker’s Compensation Insurance typically covers for the medical fees and lost wages of employees.


  • Tools and Equipment: Commercial Auto Insurance does not cover components that are detached in your vehicle. Business Owner’s Policy covers tools and equipment for your business.


  • Loading and Unloading Materials from your Business Vehicle: Items shipped in your vehicle are not included under Commercial Car Insurance. General Liability Insurance usually covers this type of exclusion.
Commercial Auto Insurance

How Much Does Commercial Auto Insurance Cost?

Commercial Auto Insurance cost varies. Insurers normally consider the weight of the vehicle, its driving radius, its original prize, and its use. For the coverage limits, insurance companies suggest business owners to have a limit of $1,000,000. The minimum would be $500,000.In general, you need commercial car insurance for any vehicle that your company drives for business purposes. 


An insurance company could be your best partner to safeguard your business vehicles from huge financial loss when accidents occur. You can contact an insurance agent to help you get the right coverage based on your car. You can also work with them to guide you about the rates for the policy you will need. If you want to speak to one of our agents, don’t hesitate to call 123-456-7899.