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. Commercial Auto 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 ensure them properly by purchasing Business Auto Policies.

When Do You Need Commercial Auto insurance?

You may still be thinking about whether you need Commercial Car Insurance or Commercial Auto Insurance. If so, you can 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

Factors that Impact Your Commercial Auto Insurance Rates

Your business vehicles can be one of the most expensive assets of your firm. Therefore, it is important that you insure them through purchasing the right policies. As you purchase your policies, you might be wondering how the rate is calculated. Thus, here is a list of factors that determines your policy rates:

Your business location
Claims history
The types of vehicles you use
Deductible amount
Your demographics

Typical Commercial Auto Insurance Coverage

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

Property Damage Coverage protects you or your business if an accident causes third party damages of which you’re at fault. Walls, constructions, or another vehicle can be some examples of properties.

Supposing your employee is on the road in the middle of the night for a business operation. As a result, your employee slept while driving and hit a garage with a car parked inside. Property Damage Coverage can provide financial assistance for the repairs and replacements of the damages.

Bodily Injury Liability

It provides financial assistance for your company if you or your employee causes a car accident that injures people. Bodily Injury helps you pay for medical fees, wages lost, funeral costs, and legal expenses. Moreover, insurance companies consider limits for each person per accident.

For example, suppose your employee drives your company car for a business operation. He accidentally hits another vehicle, injuring three other people inside. Bodily Injury can pay up to $50,000 for each injured person depending on the limits set by your insurer.

Comprehensive Coverage

Comprehensive Coverage covers the expenses for your car’s repairs due to severe weather conditions, theft, or vandalism. For example, if someone stole both side mirrors of your company car, you can save from expensive replacements through the help of Comprehensive Coverage.

Small business owners who want to purchase Commercial Auto Insurance will have policies similar to Personal Auto Insurance. Even so, some coverage options are under commercial auto insurance, such as coverage for rented vehicles.

Collision Coverage

Collision Coverage pays for the expenses related to an accident regardless of who is at fault. For example, if you used your business car for a meeting and while on the road, you bumped into another vehicle because you didn’t notice the stoplight. In that case, collision coverage is there to help you pay for the business car’s repairs.

Uninsured or Underinsured Motorists Coverage

This type of coverage covers you and your employee when you are hit or run by a driver who doesn’t have insurance. As a matter of fact, uninsured or underinsured motorist coverage is mandatory in some states.

Supposing another vehicle without insurance is at fault for bumping into your car. Because the owner doesn’t have auto insurance, he may not have enough to pay for passengers’ injuries in your car. This is where uninsured or underinsured coverage comes in. It will help pay for the medical bills for you and your passengers.

Overall, acquiring Commercial Auto insurance could be your best partner to safeguard your business vehicles from substantial financial loss when accidents occur. From Property Damage to Comprehensive Coverages, you can choose the type of coverage that can fill in your business needs. You can contact us to help you get the right policies based on your car. Work with our insurance agents to help you shop for affordable policy premiums. Get Commercial Auto Insurance Quote Now