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Commercial auto insurance helps protect your business if you or an employee get into an accident while driving a company-owned vehicle for work. Commercial auto insurance, also known as commercial vehicle coverage or commercial car insurance, can help cover costs if there’s physical damage to property or medical expenses related to the accident. This business insurance coverage will keep employees who drive company vehicles covered on the road. If you’re still wondering what commercial auto insurance is, we can answer your questions and walk you through our policy.What Does Commercial Auto Insurance Cover?
Commercial auto insurance can help cover property damage or medical expenses related to an auto accident that occurred while you or your employee were driving a covered company vehicle for business.
What Coverages Are Included in a Commercial Auto Policy?
To get a better understanding of what commercial auto insurance is, it’s important to know what types of coverage are included in a policy. There are different types of coverage available to business owners with a commercial auto policy, including:
- Bodily Injury Liability Insurance: This liability coverage can help pay for medical expenses if the other driver is injured and needs medical attention.
- Property Damage Liability Insurance: Helps pay for physical damage that you or your employees cause to someone else’s property.
- Collision Coverage: This covers the cost to fix or replace your covered business vehicle if you hit something, like another car or a pole.
- Comprehensive Coverage: Helps cover the cost for car damages caused by a theft, fire or natural disasters.
- Medical Payments Coverage: Can help cover the medical costs for your employees and their passengers in the event of an accident, such as medical treatments and rehabilitations, dental care or funerals.
- No-Fault or Personal Injury Protection (PIP) Coverage: This coverage can help cover the costs of medical expenses, lost wages or funerals after an accident, no matter who is at fault.
- Uninsured/Underinsured Motorist Coverage: This coverage helps pay for you or your employees’ medical expenses or to fix your car if the other driver lacks enough liability coverage.
- Rental Car Coverage: Offers liability coverage while you or your employees are driving a rental vehicle for business reasons. Most rental companies have loss damage waivers or a collision damage waiver that you can sign to avoid paying for property damage to a rental car.
- Hired and Non-Owned Auto Insurance: This coverage offers lawsuit liability coverage if you or your employees are involved in an accident with a personal, rented or leased car that was used for business errands. However, this type of commercial vehicle insurance coverage will not cover damages to the personal, rented, or leased car.
What Types of Vehicles Are Covered by Commercial Auto Insurance?
- Company-owned and operated vehicles
- Hired and non-owned vehicles
- Box trucks
- Work vans
- Service utility trucks
Who Is Covered To Drive My Commercial Vehicle?
Commercial auto insurance covers the business owner and any employees who drive your company-owned vehicles for business purposes. Family members are typically not covered under your commercial auto insurance policy if they are not employees at your business, unless they have your permission as the insured to use of the vehicle.
Who Needs Commercial Auto Insurance?
If your business owns, leases or rents any vehicles, such as trucks or cars, you should consider commercial auto insurance. Commercial auto insurance also protects your business and employees if they own vehicles for business purposes. In addition, if your business has employees who operate leased, rented or owned company vehicles, it’s a good idea to consider commercial auto insurance coverage.
Although coverage availability and requirements will vary by state, there’s many different types of businesses that can benefit from having commercial auto insurance, including:
- Landscapers
- Technology Specialists
- Engineers
- Photographers
- Contractors
- Caterers
- Wholesalers and Distributors
Common Questions About Commercial Auto Insurance
What Is the Main Difference Between Personal and Commercial Auto Insurance?
Personal auto insurance offers coverage for your personal vehicles being driven for personal reasons, while commercial auto insurance covers your owned vehicles being used for business reasons. Typically, all your business employees with valid licenses would receive coverage under a commercial auto policy as additional insureds. Also, the commercial auto policy usually offers more comprehensive coverages, like higher limits and liability coverages that you won’t see with a personal auto policy.
Why Is Commercial Auto Insurance Important?
Commercial auto insurance can help cover the costs of repairs and medical expenses if you or one of your employees get into an auto accident, regardless of who is at fault. A commercial auto policy from The Hartford offers customized coverages like rental reimbursement and coverage for uninsured or underinsured motorists.
What Is Commercial Vehicle Insurance?
Commercial vehicle insurance is another name for commercial auto insurance that insurance companies and agents may use.
If you’re still unsure whether you need commercial auto insurance or it’s right for your business, we’re here to help. Speak with one of our representatives at 855-860-9763 for more information.
Get a Quote for Commercial Auto Insurance
We know that all business owners face unique risks. We can work with you to customize your policy to meet the specific needs of your business. Get a commercial auto insurance quote today to learn how you can protect your business while on the road. Call 855-860-9763 today to get a quote.
Last Updated: June 5, 2023
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