22Apr

No matter what size your business fleet is, you’ll benefit from adequate coverage with a commercial auto insurance policy. If any of your drivers suffer a sudden accident, you could suffer significant financial losses. Every delivery or errand run that dictates you putting the car in drive can pose a fair amount of risk, as the peak of rush hour is not exactly ripe with tranquility! 

What is Commercial Auto Insurance?

This form of coverage is specifically designed for cars that are only used during a business day. It exists as a formal contract between you and the insurance company and clearly defines how you’ll be compensated if you happen to be in an accident. Trucks and vans fall under the category of commercial auto insurance coverage, along with food trucks and box trucks busily making their way down the road.

Here are a few scenarios when you will need a business auto insurance policy:

  • Your car is a company car and is used only for work duties
  • This truck or car is solely owned by your company 
  • You are conducting a business service by using this vehicle 
  • Equipment and tools are hauled with this vehicle 
  • The nature of your business calls for high insurance limits 
  • A day’s work involves transporting people in your car or van

What Does Commercial Auto Insurance Cover?

Commercial auto insurance can differ due to forms of coverage, limits, and necessary exclusions. Generally speaking, a commercial auto insurance policy will offer higher limits than a personal auto policy. Here are some different types of commercial auto coverage:

  • Bodily Injury Liability Insurance: Pays for other injuries that you or an employee cause, along with legal costs if you are sued. 
  • Property Damage Liability Insurance: This coverage pays for damage on other individual’s property if you or an employee initiate an accident. It also will cover necessary legal costs if you are sued. 
  • Combined Single Limit: CSL provides one overall limit for bodily injury and property damage claims lodged against you, as opposed to two separate limits. 
  • Personal Injury Protection: Pays for medical expenses and other costs such as funerals for you along with passengers. This type of coverage is very attractive, as it kicks in no matter who was at fault for the accident. 
  • Medical Payments Coverage: This coverage will pay for incurred medical expenses and other costs such as funeral fees. MedPay is commonly found in smaller allocations such as $5,000 and under, and does not cover lost wages. 
  • Collision Insurance: Tragic events can happen in the blink of an eye, and this form of coverage Will pay for the complete replacement of your work car or truck after an accident.
  • Comprehensive Insurance: Comprehensive insurance pays to replace your vehicle after occurrences such as falling objects, fire, collisions with animals, vandalism, and outright theft.
  • Uninsured Motorist Coverage: Falling under the guise of huge demand with changing times, Uninsured Motorist coverage pays for injuries to you and your passengers if you are hit by someone completely uninsured. Some states allow for this policy to go above and beyond, covering damages to the vehicle as well.

What Events Are Not Covered by Commercial Vehicle Insurance? 

Commercial insurance will NOT cover:

  • Personal vehicles used for work.
  • Rental vehicles used for work.
  • Equipment and tools that are unattached in a commercial van or truck. These can be covered from damage or outright theft under a commercial property insurance policy. 
  • Customer vehicles are not covered. However, theft or damage to your customer’s cars from severe weather or fire can be protected under garagekeepers insurance. 

What Kind of Vehicles Are Covered By Commercial Car Insurance? 

Following are some of the vehicles that are covered by Commercial Car Insurance:

  • Box Trucks
  • Company cars
  • Commercial trucks and van
  • Food trucks
  • For-hire livery
  • Tow trucks

Why Do You Need Commercial Vehicle Insurance?

Beginning your work day without this valuable protection leaves you at dire risk of paying for damage and injuries that can happen in a split second involving any of your vehicles. No matter how well-acclimated to the task and reliable your employees may seem, they can still be injured during an accident. Busy residential intersections that never got around to putting up a stop sign and quickly making their way out of the lot for delivery can instigate a fender bender, or even worse. Any busy company can quickly become overzealous and need to distribute product, and many short fuses on the interstate make for problem drivers. 

How Much Does Commercial Auto Insurance Cost?

The national average for commercial auto insurance is about $150 per month, which is quite a small price to pay for peace of mind regarding the business you worked so hard to build! Here are some of the factors that govern your monthly cost:

  • Size of the business
  • Risks involving daily driving
  • Number of employees who drive covered vehicles
  • Types of vehicles
  • Value of vehicles
  • Claims history
  • Employee driving records
  • Policy deductible
  • Policy coverage limits

Tips For Buying Commercial Auto Insurance:

Here’s a personal checklist from us here at the Alexander Agency to help with your purchase:

  • Get Adequate Coverage: Be sure to have enough coverage to protect what you could lose in a formal lawsuit. These can rear their heads quickly if there’s a damaging accident, pushing many to secure liability coverage beyond Missouri’s bare minimum. We recommend a minimum of $500,000 in liability coverage per vehicle.
  • Speak With an Agent: Relying on info directly from the web can be excellent, but an agent can help you find the policy that is ideal for your situation. A human can be the best resource to select the coverage that fits your needs, leaving you secure.
  • Research The Company on Your Own: It’s important to take the time to research your prospective provider, and not be overly enticed by a low price. It’s best to compare the various coverages on the table and check reviews from customers who have seen their due diligence and provision.

In today’s constantly changing environment, the need For 100% reliable insurance cannot be overstated! Our competitive rates ensure that you have the protection you need, and secure a bright future for your enterprise. From bumper to bumper, the Alexander Insurance Agency has you covered, and we are standing by with a road-worthy policy for you.