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Commercial Auto Insurance

Be Informed on Commercial Car Insurance

Good commercial car insurance functions very similarly to traditional auto insurance, but with a few small differences.

One way it is different is that it’s engineered for businesses, rather than individuals. The coverage is on the vehicle(s) as opposed to a specific driver and, (as with traditional car insurance), virtually all states mandate it for those companies that utilize vehicles for any number of functions necessary for the functioning of the company.

Companies are well-served in carrying this kind of coverage should they operate and either own, rent or lease any kind of a vehicle that is part and parcel to carrying out a service or that is needed for the transport of goods and/or personnel throughout the course of a business day. Businesses also need this coverage if their workers tend to drive company cars during the job day. This coverage is also invaluable for those who utilize their own cars to conduct company business.

In addition, quality commercial auto insurance is normally necessary if the owner of the business operates vehicles for both personal and business use. Car insurance companies encourage this type of coverage when a covered vehicle is likely to be on the road and used more frequently than one’s typical personal car usage.

The type and level of coverage that companies will normally obtain is not too far off from the comprehensive coverage for individual drivers. However, coverage will deviate from the norm when it’s used to cover more than one vehicle and, certainly, if it’s intended for a fleet of cars, vans, or trucks. This kind of coverage is important to ensure that one’s employees are protected if they find themselves involved in an accident during work. In the case of an accident, an employee would not utilize his or her own coverage if they are driving a vehicle owned by their employer. Coverage, in this case, goes a long way in safeguarding the business and its hard-working ownership.