Tuesday, May 30, 2023

How to Choose Between Different Types of Commercial Auto Insurance – The Easy Way

Running a business that involves the use of automobiles may be possible, but dealing with commercial auto insurance can be daunting, especially when you don’t know which one to choose. One of the most challenging decisions you will make as a business owner is choosing the right insurance policy that is capable of protecting your business assets as well as your employees from unexpected financial losses and the risk of lawsuits. The first step involved in choosing the right type of auto insurance is understanding the different types of commercial insurance coverage that are available.

Basically, commercial auto insurance divides vehicles into two major categories

  • Private passenger-type automobiles such as cars, vans, SUVs, and small trucks

  • Trucks, trailers and tractors including pickups, dump trucks, dry freight, refrigerator boxes, auto haulers, tanks, etc.

There are two main categories of commercial auto insurance: general insurance and specialized commercial auto insurance.

There are six types of coverage included in general commercial auto insurance.

  1. comprehensive coverage: This type of coverage begins when a vehicle is vandalized or sustains damage caused by an animal or fallen tree other than another vehicle.
  2. collision insurance: This type of insurance covers the damage caused to a vehicle which occurs when the vehicle collides with another vehicle or object or the vehicle overturns. This type of insurance is very much needed for those vehicles which have a loan or lease.
  3. Uninsured/underinsured motorists: This type of insurance covers damages and medical costs incurred in an accident caused by a motorist who is either uninsured or underinsured.
  4. liability insurance: This type of insurance is generally required by most states. It kicks in when you cause an accident. It not only protects you from loss but also provides a legal defense in case the other party files a suit against you. “Property damage liability” covers damage to the car or property of another party while “bodily injury liability” covers injuries or death caused due to a car accident.
  5. Medical Payments Coverage: This type of insurance covers medical costs incurred by anyone in your vehicle due to a car accident, regardless of whose fault the accident was.
  6. Personal Injury Protection: This type of insurance covers injury-related costs incurred when you or your employees are involved in an accident, regardless of who was at fault for the accident.

Specific commercial auto insurance Intended for businesses that require the use of specialized vehicles in performing daily activities. Some common types of custom coverage that are designed to protect specialized vehicles include coverage for catering trucks, landscaping vehicle coverage, and business-related vehicle coverage.

Crucially, no matter what type of business you run or what type of automobile vehicle you use, a commercial insurance policy can be customized to meet your specific need.

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