What is Commercial Auto Insurance?
Commercial auto insurance is insurance for automobiles used for business purposes. Any business that has a fleet or a single automobile for business purposes is eligible for this insurance. This policy provides financial support for automotive repairs and to pay damages following an accident.
This insurance is available to businesses, nonprofit organizations and government agencies that operate commercial vehicles. Coverage is usually purchased for trucks, vans, buses and cars. You can also insure passenger vehicles, as long as they are used to transfer products or customers.
How it Works
Before you can get this insurance, your vehicles must be evaluated. The insurance company will want to know what the vehicles are used for. They will also want to know how far the vehicles will travel per day. They will also consider the experience of the drivers, makes and models of the vehicles, and several other factors. All of these things will affect the price of your insurance coverage.
Types of Coverage
What you need covered depends on your business. You will need liability coverage, as that helps pay for damages that you cause. You can also get uninsured motorist coverage, which helps pay if you are in an accident with an uninsured driver. You can also get coverage that covers vandalism and other types of collision. There is also coverage that will pay for repairs.
If your business uses vehicles, then you need commercial auto insurance. It can help save money on repairs. It will also help you following accidents. With this coverage, you will always have help keeping your vehicles in working order.