Whether you have one vehicle that you use for business purposes or you have a fleet of vehicles, you need to invest in a commercial auto insurance policy. In many states, this type of coverage is required by state law, and many states establish specific minimum coverages that you need to purchase based on how the vehicles are used. For example, vehicle that is used to transport passengers may need different minimum coverage than a vehicle used to transport parts for a plumbing or other trade business. In most cases, the state’s minimum requirements include liability coverage that pays for damage you cause to others. This may include the other party’s vehicle repairs, loss of personal property, related medical bills and more. This coverage often does not include coverage to repair or replace your own vehicle.
While the state’s minimum coverage requirements may not be fully protective for all losses you may face if your commercial vehicle is in an accident, stolen or damaged in some other way, there are optional coverages that business owners can purchase. For example, many will invest in a comprehensive commercial auto insurance policy. This type of coverage will pay for any damages to your vehicle as well as damages you cause to another party. Additional optional coverage may be purchased to provide you with a rental car if your commercial vehicle is out of commission for repairs. The financial impact of a vehicle issue can be significant, and the right coverage can drastically reduce this impact.
The cost for a commercial auto policy can vary substantially based on various factors. For example, the type of vehicles that are being insured, where your business is located and who will be driving the vehicles also can impact your rates. If you are looking for the best deal possible on a commercial auto policy, it is important to use discounts available through different insurers. By purchasing the right commercial policy for your needs, you can rest assured that you comply with state requirements for a minimum amount of coverage and that you are fully protected from financial loss.