There are many differences between private and commercial auto insurance, but in most cases you will notice that both kinds of coverage are about the same. A commercial vehicle will have more liability risk than a private vehicle, so their liability coverage will be higher.
Before purchasing commercial auto insurance, it’s important to first figure out exactly what kind of coverage you need. Here are the four main types of commercial insurance:
Bodily Injury Liability Insurance (BIL) is a type of insurance that protects you and your commercial vehicle against bodily injury claims that might occur on the road. Bodily injury claims are often filed because of accidents, so having this insurance will help protect your company as well as any employees who are on the road. Since injuries from driving are so common, you should definitely consider adding this type of policy to your car insurance needs.
Collision Insurance is not intending to provide coverage for damages to other people or your vehicle, but rather to pay for repairs or injuries incurred while you’re at fault. This kind of insurance can cover your company’s assets, like the company’s building, office buildings, and other property that you own. If you happen to hit another driver or truck, you should always consider getting collision coverage in order to protect your company.
Comprehensive Commercial Auto Insurance is designed to protect against damage to a company’s vehicles, as well as property. Unlike liability, this coverage covers any and all damages caused to your company’s equipment or vehicles, as well as property such as warehouse equipment. It doesn’t matter if you hit another driver or someone’s vehicle, comprehensive coverage will still protect your company’s assets.
Comprehensive car insurance policy also protects against any losses or damage to property that may result from vandalism or acts of nature. Because car accidents are often a result of bad weather conditions, fire, or vandalism, having this kind of insurance can help ensure that you and your company are protected against any unforeseen mishaps. In addition to protecting your company’s assets, this kind of coverage also provides coverage against the loss of merchandise or items that are stored inside your facility.
If you want to protect more than one type of property from damage, then comprehensive car insurance is perfect for you. Many times you will purchase this type of policy along with another type, like liability, and then have the choice of combining them all together into a single policy. This is a great way to save money, as you will be able to get coverage for all the types of damages to your property that you might cause on the road.
All in all, commercial auto insurance is very similar to personal car insurance coverage. You will be required to purchase the basic liability coverage, as well as a separate amount of bodily injury and collision coverage for your vehicles and for your equipment. The amount you choose to include in your commercial auto policy will depend on a variety of factors, including the type of company and the type of vehicles that you own.
If you own several kinds of commercial vehicles, then purchasing commercial auto insurance will likely cost you more money than it would for personal drivers. This is due to the fact that most companies require that you insure their entire fleet with their coverage. This can get very expensive quickly, so it’s important to understand exactly how much each vehicle is worth and to figure out a way to include that amount in your policy.
In order to determine the exact amount of coverage you need for your commercial auto policy, you should consider all aspects of your business, such as the number of miles you drive each year, and the type of vehicles you use. If you don’t need a specific level of coverage for your fleet, then you may not need to add too much to the total cost.
If you only use a few types of vehicles that are classified as « high performance » by your insurer, then you won’t have to worry about adding as much to your overall policy as your more specialized vehicles, like trucks, SUVs, or vans. This type of coverage can actually be cheaper than your standard coverage because these vehicles tend to cost less to insure. For example, if your company has a fleet of high performance vehicles, then they aren’t a problem to insure.
To figure out exactly what level of coverage you need, take a look online and visit an insurance comparison site to see which type of policy you’ll need to have to protect your company. You can then go over the details of each policy and figure out the amount of coverage that you need to insure each vehicle.