Commercial Vehicle Insurance Explained


What is commercial car insurance? Commercial car insurance protects your company from possible financial loss following an automobile accident. It’s a contract between you, the insurance provider, and the insurance company. In exchange for the premium, you agree to cover your vehicle, and your insurer agrees to cover your losses, as defined in your commercial car policy. To obtain full coverage, you’ll want to purchase a policy that covers you for a variety of scenarios, including accidents, damage caused by vandalism, and other property damage.[1]

How often do you drive your vehicles? How often are different vehicles used for work, pleasure, commuting, or other reasons? If your company receives a lot of use, or you frequently transport employees and/or vehicles from one location to another, you may need commercial auto insurance to protect your company against the potential financial loss resulting from accidents, damages, or injuries caused by your vehicles. If you only occasionally use your vehicles, you may not need commercial car insurance to adequately protect your company, but you should still purchase a policy to protect your vehicles and yourself if you must use them in the event of an accident.

How much will it cost to insure one vehicle? The cost of commercial car insurance policies varies depending on several factors, including how many vehicles you own, where you live, your drivers’ history, and other factors. In addition, the cost of auto insurance coverage will vary greatly by type. Some types offer a variety of coverage, while others only offer collision, liability, and medical coverage.

What limits are offered? Different insurance companies define limits on the type of coverage they provide differently. For example, some limits are based on the weight and size of the vehicle, while others are based on the maximum passenger capacity of the vehicle. Many companies also define their maximum limits in terms of how many tickets a driver can accumulate, how many years a person can drive a motor vehicle, and how many miles a person can drive a vehicle over a set period.

Who is covered by my insurance? Your insurance can cover just the vehicle itself, or it can cover your company, your employees, your passengers, the building in which your vehicle is parked, the people who use your vehicle, and any others who may come into contact with your vehicle daily. In addition, your policy can protect in the event of theft, vandalism, or a combination of these events. Depending on the type of insurance you purchase, specific circumstances may affect the cost of your premiums. Always remember that when you transport paying passengers, whether it is a taxi or Taxify service (now Bolt), you will need commercial insurance, as a standard vehicle policy will not cover your car or passengers in the event of an accident.[2]

How do I compare rates from a commercial auto insurance company? Every reputable auto insurance company makes available to its policyholders a form that allows them to request several different rate quotes based on several different criteria. The rate quotes will be based on the age of the drivers, the type of vehicles they drive, how many similar vehicles they own, the value of their insured vehicles, the age and value of their drivers’ licenses, the volume of tickets that have been written against them, and any other criteria that a policyholder chooses. Requesting several different rate quotes is a good way to save money on your auto insurance.



Steven Gregory