All about commercial auto insurance
If you drive your car mostly for business purposes or you own a business that has cars that you and/or employees drive, you need to have a commercial automobile insurance policy.
What is it?
A commercial auto policy is a type of property and casualty insurance that covers vehicles that are used in business. Such policies are similar to personal auto insurance, but they differ slightly in a number of ways.
Who is it for?
Commercial auto insurance is for cars that are used predominantly for business purposes. This might be a car you own that you use in the course of conducting your business or it might be for autos you own that are used by employees for conducting business.
How does it work?
Commercial auto insurance is more comprehensive in many respects than personal auto insurance. For example, individuals often carry only liability insurance in the minimum amounts required by law. But business vehicles have more value, so you want to may sure you have a full suite of coverage. Most commercial auto policies have three elements: physical damage insurance, which includes collision and comprehensive coverage; liability insurance, including coverage for property damage, bodily injury and uninsured drivers; and other coverage for things such as medical payments, towing costs and rental reimbursement.
Types of coverage
Most commercial policies offer the same coverages, although you may be able to customize your policy with more or less coverage than what is normally offered. It largely depends on your situation and what kind of business vehicles you use.
The major benefit of carrying a commercial auto policy is that your business vehicles will be covered against loss and your drivers will have liability coverage in case they cause an accident that is their fault. Other benefits include coverage for rentals, towing and gap coverage that will cover what you might owe on a vehicle compared with what it is worth if it gets totaled in an accident.