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Beginner's Guide to Commercial Car Insurance



Do you use company-owned vehicles to conduct business? You may need to consider getting a commercial car insurance policy. For those who are new to the game, it can be a confusing topic. You know you need coverage, but may not be clear on what type or how much. Our knowledgeable agent can help you get the specific coverage you need for your unique businesses. The following is general information about commercial car insurance for beginners.

What is the difference between personal and commercial car insurance?

Personal car insurance only covers claims related to the personal use of a vehicle. This includes commuting to and from work. They have lower insurance limits and cost less than commercial car insurance. Insurance companies will deny passenger car insurance claims for accidents that occur when a vehicle is used for business purposes.

Commercial car insurance is designed for business-owned vehicles that tend to cover more land. They usually have higher insurance limits and higher premiums due to the increased risk.

Who needs commercial car insurance?

If one or more vehicles are used to perform tasks related to your profession or business other than commuting, you will probably need commercial car insurance. This coverage is needed when vehicles are:

  • Owned by a company or partnership
  • Perform a service
  • Transport of people or goods for a fee
  • Transport of customers or employees
  • Transport tools or equipment used to carry out business
  • Towing a trailer used for doing business
  • Driving to and from workplaces
  • Driven by employees during work

What does commercial car insurance cover?

Commercial car insurance covers the cost of accidents with commercial vehicles. It contains the following types of coverage:

  • Liability for car accidents : Liability insurance pays for damages in an accident you or your employee caused, including medical bills and property damage. It also covers your legal costs in the event that you are sued.
  • Medical: This coverage pays for medical expenses if you, your employee and / or passengers are injured in an accident. It kicks in no matter who was wrong in the crash.
  • Collision and vehicle damage: This insurance protects you financially against damage to the vehicle caused by bad weather, vandalism or shocks to an object.
  • Uninsured motorist: Despite state laws, it drives one in eight drivers in the United States without the mandatory minimum insurance, according to Insurance Research Council . Uninsured motorist cover protects you if an uninsured driver causes a crash with a company vehicle.

What happens if the vehicles you use for business are not owned by the company?

If you rent or lease your vehicles, or if you or your employees use personally owned vehicles for business purposes, commercial car insurance will not protect you. In that case, you need rented and non-owned car insurance. Personal car insurance does not cover accidents that occur when a vehicle is used for business purposes. Having employed and non-owned car insurance can help you and your employees protect you from personal liability for accidents.


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