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What Exactly Is Commercial Automobile Insurance?
When you use a car, truck, or van for business reasons, you’ll want to protect yourself financially by purchasing commercial auto insurance. Personal car insurance is insufficient and will not cover the vehicle if you (or an employee) are involved in an accident while using a company vehicle. Get acfa Payday Loans Online that can welcome even with bad credit.
Commercial auto insurance may cover various vehicles, including corporate cars, food trucks, and delivery vans.
What Is Covered By Commercial Auto Insurance?
Here are some of the coverage options offered with business vehicle insurance:
- When you are at fault in an accident, property damage liability compensates for damages to another person’s property, such as their automobile.
- When you are at fault for an accident, bodily injury liability compensates you for the harm you cause another person.
- The single combined limit (CSL) provides a single limit for property damage and bodily harm claims.
- Collision coverage protects your company vehicle if it collides with another car or an object, like a pole.
- Comprehensive insurance protects you against damage caused by weather, fire, falling items (such as tree branches), and other unforeseen events. Additionally, it covers vehicle theft.
- Medical payments and personal injury protection (PIP) cover the expense of medical treatment for you and your passengers, regardless of who caused the accident.
- Uninsured motorist coverage provides coverage for your injuries and those of your passengers if an uninsured driver hits your vehicle.
What Is Auto Insurance for Hired and Non-Owned Vehicles?
If you rent a company vehicle or sometimes use a personal vehicle for business purposes, the car will not be protected under commercial auto coverage. However, the range is available via “hired and non-owned car insurance.”
Assume you’re driving your vehicle to a business meeting and are involved in an automobile accident. You are blamed for the accident, and the other motorist files a lawsuit against your firm. Auto insurance for rented and non-owned vehicles would assist in covering these legal costs.
Factors Affecting the Cost of Commercial Auto Insurance
Here are some of the elements that affect the cost of business vehicle insurance.
- Business of the company. Your business’s kind affects the commercial car insurance premiums you’ll pay. If you work primarily from your office, you’ll pay less than someone who drives a work van and makes client calls all day.
- Vehicle. Insurance rates are affected by the kind and size of the corporate car.
- Driving record. Drivers with a clean driving record benefit from lower rates.
- Location. If you work in a larger city, you might anticipate paying a higher premium for commercial vehicle insurance than a firm operating in a small town. Drivers in locations with a low accident rate and a low auto-theft rate pay less.
- Mileage. How often you drive a business vehicle affects pricing.
- Options for coverage. Your insurance coverage options and policy restrictions affect your premium.
Are You Required to Have Rideshare Insurance?
If you work as a driver for Uber, Lyft, or another ridesharing service, you may want to consider adding rideshare insurance to your policy. Using a personal vehicle policy in conjunction with the ridesharing company’s insurance may result in a coverage gap.
For instance, insurance coverage is the gap when a driver has the rideshare company’s app open but is still waiting for a passenger’s request. The driver will be uninsured for comprehensive and collision damage under their vehicle policy or the ridesharing company’s insurance policy. Obtaining ridesharing insurance closes this coverage gap.
We examined 28 firms using data from the National Association of Insurance Commissioners on commercial vehicle insurance complaints filed with state regulators in 2021.