Buying Commercial Auto Insurance
Author: weissheiss
Commercial auto insurance protects business owners from untoward incidents that can cause financial loss or obligations. Among the types of vehicles covered by this type of insurance are those used for employee pickup, client servicing, freight, and business travel. With commercial auto insurance, your fleet is protected from theft, road accidents, and claims arising from collision.
Depending on your location, your state government may require you to buy commercial auto insurance. Commercial car insurance is usually separated from personal car insurance. A personal insurance policy usually excludes vehicles intended for commercial purposes. If you are using your car for both personal and commercial purposes, consider buying a separate commercial insurance. Each insurer has its own definition of commercial use, and you might have difficulty making a claim if your personal insurance distinguishes between personal and commercial vehicles. Commercial vehicles generally refer to a motor vehicle used primarily to transport goods, materials, people and equipment as part of a business operation.
Tips to Save on Premiums
You should hire a driver with a good driving record. Enroll your company drivers into a road safety program to enhance their defensive driving skills. Increase your deductibles. This is the personal obligation of the car owner that must be paid first before the insurer reimburses the remaining claims. Have your vehicles undergo periodic maintenance and inspection. Avail of multiple insurance discounts if you have more than one vehicle to insure. Having a fleet covered by a single insurer lowers the premiums per vehicle as compared to getting a separate insurance from various providers. Shop around before renewing your car insurance. Premium differentials can be as high as 35%, so you have to check at least five providers to get the best quote. Use your “no claims bonus” to negotiate for lower premiums. Insurers will ask you to pay lower premiums if you made fewer claims on your previous insurance.
Types of Coverage for Commercial Auto Insurance
Accident Benefits coverage pays for medical and rehabilitation expenses, funeral expenses, and economic loss due to disability and death resulting from road accidents. Third-Party Liability coverage provides compensation for the damages caused by your company driver to a third-party. Should the claims exceed the coverage; your company will pay the uncovered expenses. Some states impose minimum coverage for third-party liability. Collision coverage reimburses the damages incurred by your vehicle from a road accident. You may opt out or decrease your collision coverage to save on premiums. Comprehensive coverage is also optional. It pays for losses or damages resulting from acts of nature, theft, vandalism and accidents other than collision. Car owners are usually required to pay deductibles.
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