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What Should I Look For When Buying Commercial Auto Insurance?

There is no denying that a road can be a dangerous place. It is especially true if driving is an integral part of the business you run- you’re susceptible to risk associated with a car crash and road accidents. If you don’t take risk factors into account, your business may experience a significant financial loss.

That is to say; your business vehicle is at the mercy of heavy traffic, maniac drivers, foul weather, and poor road conditions. And, adding litigious culture, uninsured drivers, and vandalism to this mix only escalates the potential costs and risks.

This is where you need a comprehensive insurance policy for your vehicles for protection.  Whether you have one car or fleet, commercial auto insurance may offer you plenty of benefits.   If you’re a first-time policy buyer, here are a few things you should look for when buying commercial auto insurance to ensure that it adequately protects you. Let’s start with a brief description of Commercial auto insurance

What Is Commercial Auto Insurance?

Commercial auto insurance and personal car insurance have plenty of similar features. However, commercial auto insurance covers vehicles that you use for business purposes. This includes both the cars you purchase for work and personal vehicles you use for official purposes.

Commercial auto insurance may cover; 

  • Work vans
  • Delivery trucks
  • Dump trucks
  • Food trucks
  • Forklifts and construction vehicles
  • Box trucks
  • Service utility trucks
  • Company cars

What to Look for When Buying Commercial Auto Insurance

·        Purchase ‘Hired and Non-Owned Car’ Coverage

Most employees use their cars for work or business purposes. Sometimes you have to borrow a rent a car for a business trip. Most commercial car insurance policy insurers often exclude coverage in these situations if you don’t buy hired auto physical damage or non-owned auto liability. It is typically a small cost that ensures your protection.

·        Ensure that Your Insurance Carrier Adds an “Additional Insured”

Businesses may involve agreements that require adding a third party as an additional insured to the policy.  If this is the case with your business, you need to make sure that the carrier you select has the ability to handle this.

·        Go for ‘Driver Other Car’ Insurance Coverage

If you use the business’s vehicles and don’t have any auto policy, adding “drive another car” insurance to your commercial car policy can benefit you.  It covers you and your spouse if you use another vehicle for your personal use.  But it excludes other cars a household member owns, i.e., borrowing a vehicle of a friend.  The type of coverage has the same features as a personal auto policy.

·        Purchase Rental Reimbursement Coverage 

You should look for commercial auto insurance that includes rental reimbursement coverage.  You need it if you damage a company’s vehicle in an accident to the extent that it needs repairs. It covers the cost of renting a replacement car. 

·        Look for Auto Accident Liability

You need commercial car insurance that offers comprehensive liability coverage to help you pay for accident damages. These may include:

  • Legal expenses if the other party sue over the driver’s injuries
  • Repair costs for the damaged property and vehicle

Suppose your employee hits a sports vehicle while driving your food business’s truck. The accident occurs due to the truck driver’s fault. If your company has commercial auto insurance, you can pay for the sports vehicles’ repair costs. You also get coverage for the medical expenses of the driver’s injuries in the crash.

·        Purchase Higher Limit for Comprehensive Protection

    Of course, everyone wants to keep the premiums low when investing in an insurance policy. However, you won’t find insurance policies more expensive than the ones that don’t have adequate coverage to save you if someone sues you.

You live in a litigious society where people sue others quickly, and a lawsuit may cost you thousands of dollars.

    Skimping on liability coverage is not a wise idea. You must go for commercial auto coverage that has higher limits but may offer you better protection. Consider it an umbrella liability that can extend your safety.

·        Combine Commercial Car with A BOP

 When you have a commercial car policy with the carrier that documents your BOP (Business Owner Policy), it provides you with numerous discount opportunities, depending on the specific situations.

·        Buy Policy with Additional Collision and Physical Damage Coverage

 You may buy additional coverage in your commercial auto insurance for physical damage and vehicle theft that may include;

  • Vandalism
  • Weather events
  • Other Objects Impact

For instance, a tree broken by a windstorm falls and breaks the windshield of your pizza delivery truck.  Your commercial auto insurance will pay for the repair costs of the windshield.

Summing Up

All in all, if your business requires you to use vehicles for different operations, you need commercial auto insurance. Even if you need to use your private vehicle for your business purposes, other than commuting to the office, going on road trips, and running errands- commercial auto insurance is necessary. 

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