Any company that provides vehicles for their employees has the very important responsibility of carrying auto insurance. As deliveries are made and people are in transit from one job site to another, there are all sorts of incidents that could arise on the road, making the need for adequate coverage mandatory. Everyone here at the Alexander Insurance Agency of St Charles is looking forward to seeing our clients have a safe and happy 2023. We put together a few of the most important items that will prepare you to make the best policy choice for your drivers out there hard at work on the job!

The Inclusive Liability Protection Commercial Auto Insurance Includes:

Commercial auto insurance is one of the most essential forms of coverage for businesses, because it provides liability if anyone encounters an accident on the clock. Any vehicles used at all for business purposes are covered, as well as the employee behind the wheel. Medical expenses for employees that incur an accident are also covered, and if you select the appropriate policy, so are legal costs incurred.

Many Coverage Characteristics are State Regulated:

The exact amount of coverage you will have to carry will depend on the location of your business. If you fail to comply with Missouri limitations, you may incur hefty fines, and be susceptible to the misery of a lawsuit against you. Each state requires you to provide compensation for the other driver involved if you are deemed at fault during the accident. Bodily injury liability and Property damage liability are minimum requirements before you hit the road.

Business Categories can Govern Costs:

The average price for commercial auto insurance is around $140 per month, with some on the luckier end paying less than $120 per month. Here are some factors that make a difference:

  • Your business’s size
  • How many vehicles need coverage
  • Types of vehicles needing coverage
  • How many different employees drive said vehicles
  • How much coverage are you in need of?
  • List
  • Unique occupational risks that your profession may have

Knowing Exactly Where You Stand in a Pinch:

If you suddenly are involved in an accident, you will find yourself quickly wondering how much coverage you have and for exactly what type of incidents. Your commercial auto insurance policy will provide coverage for you with a split limit or combined single limit method. A combined single-limit policy has a very specific coverage limit for any damage or injuries that occur during the accident.

The other vehicle involved may sustain bodily injury: if your coverage limit is $200,000, that amount will go toward covering damages that occur, and any medical expenses the victim incurs. A split limit policy provides different coverage limits for bodily injury and the unfortunate occurrence of property damage. So, depending on your per-person coverage limit, you may be personally responsible to pay damages if your limit is exceeded.

Situations That Benefit From Additional Coverage:

From large-scale food delivery to many other forms of logistics and transportation, many situations may require additional forms of coverage. If your employees use personal vehicles for work or rent company vehicles while on the go, it is wise to consider Hired and non-owned auto insurance. This form of coverage will protect vehicles that you need to use but you do not claim legal ownership to, such as traveling for work and renting cars in a different city.

Once your employees need to cross state lines to travel for work, additional forms of coverage may be needed. The coverage limits could be higher in your destination state than your home state, which could see you needing to speak to your provider to alter your plan. Some businesses such as sales thrive on out-of-state travel, while others such as IT may see needs to do so come up rapidly and unexpectedly.

The Advantage of Premiums During Tax Time:

The commercial auto insurance premiums that you need to pay for coverage may be tax-deductible. If you are not quite sure, it’s best to keep track of your mileage, receipts for business-related expenses, and keep a detailed record of your driving history for the last three years. If you are a self-employed contractor and need to drive your supplies around daily in a truck, you can deduct your premiums from your taxes. However, the car itself that you use to commute to and from work does not qualify.

If you drive for a rideshare company such as Uber or Lyft, you may need to have special insurance that covers you and your passengers. If you are using your car as a form of taxi, you can deduct your insurance. If your state and insurance company allow you to use your own personal insurance while ridesharing, you can calculate your deductible time.

Factors Governing the Decision to Deduct:

This amount is calculated by dividing your monthly car insurance payment by the percentage of the time you are using the car for this function. The most important thing to keep in mind here is that you can only write off insurance expenses if the total amount you are eligible to deduct is greater than the amount of the standard deduction. A few dollars saved is never worth your time and trouble when it comes to an audit, and an accountant is the best individual to consult when you have any potential questions.

It’s also important to note that it is not always mandatory to fully itemize your deductions to claim them as expenses. These deductions can be claimed on “Schedule C, Profit or Loss From Business.” Speaking to us here at the Alexander Insurance Agency of St Charles will allow you to make the best decision regarding your policy choice. Even though we understand that it can be a bit unnerving to think of the entity that provides your vitality and security having various individuals drive your cars, therefore insurance coverage exists: let us do the harder leg work and estimation while you hit the road and get ready to generate and retain business!