All commercial vehicles are required by the government to have commercial auto insurance. Whether your business has a dedicated fleet or you use your personal car for business purposes, the coverage will protect you and your employees in case of an accident. It covers medical fees and other expenses that you may incur.
The cost of commercial auto insurance varies based on a wide range of factors, such as employee driving records, level of risk involved, number of vehicles, and your state of residence. Commercial auto insurance in New Jersey, for instance, costs an average of $150 per month. However, if you're a small business owner, the premiums may go as low as $100 per month.
Read on to learn more about commercial auto insurance and how it works.
Commercial auto insurance is a type of insurance that covers business vehicles. Business vehicles can include commercial trucks, company cars, box trucks, work vans, or any other vehicle that you use to run your company's daily operations.
The coverage is designed to cushion your business from expensive losses if a business vehicle is involved in an accident or faces any other issue covered by your policy.
Here are a few scenarios where commercial auto insurance may come to your rescue:
Any company that uses vehicles for business operations must have a commercial auto insurance policy. Whether you own a tow truck, a fleet of vehicles, or a landscaping pickup, they must all have commercial car insurance coverage.
If you use your personal vehicle to drive to and from work, then your personal auto insurance policy will cover you. But if you use it to make deliveries or run any other work-related errands, then a commercial auto insurance policy will cover you if you are involved in an accident.
If you're unsure whether you need a commercial auto insurance coverage, ask yourself these questions to help you decide:
All vehicles must have liability coverage, regardless of whether they're for business or personal use. Depending on your budget, you can get basic or standard auto insurance policies. The standard plan includes a minimum of the following:
Commercial auto insurance can cover you for both liability and collision damages. Your insurance agency will recommend the best policy for you based on factors like the types of vehicles you own and how they're used. The coverage limits might be higher than what you'd get with a personal insurance policy.
Besides liability and collision benefits, commercial auto insurance may also cover you for the following:
Liability coverage can only protect you if one of your vehicles causes an accident but cannot cushion you from a mishap caused by someone else. This is why you need to get extra coverage to ensure you're fully protected in an accident. There are different types of coverage in a commercial vehicle policy. They include:
Commercial auto insurance policies do not cover the following:
If you run a business that uses trucks, vans, or trailers for business operations, you need commercial car insurance to protect yourself and your employees while on the road. Some of the most common businesses that can benefit from commercial auto insurance include landscapers, engineers, photographers, caterers, and contractors.
Driving a commercial vehicle without insurance could result in fines, penalties, and in the worst-case scenario, revocation of your driver's license. Therefore, it's your responsibility as a business owner to ensure that your work vehicles are adequately insured before hitting the road.
