What To Consider When Choosing Commercial Auto Insurance

If driving is an integral part of your business, you are susceptible to risks associated with automobile accidents and wrecks. Your commercial vehicle is at the mercy of uninsured drivers, vandalism, and our litigious culture. To keep your company safe, you must consider these risk factors, or you may experience significant financial loss if an accident occurs. 


The right commercial auto insurance policy can provide the protection your company needs. Whether you have one vehicle or an entire fleet, your commercial auto insurance policy should offer you the peace of mind of knowing your business is protected if an accident occurs. If you are buying an insurance policy for the first time, or you’ve decided to shop for a better commercial auto insurance plan, here’s what you should look for to ensure it protects you adequately. 


Vehicles Covered By Commercial Auto Insurance

Commercial auto insurance is similar to personal auto insurance but covers the vehicles you use for business purposes. Both the cars you purchase for work and personal vehicles used for official purposes can be covered with your commercial auto insurance policy. Some of these vehicles may include:

  • Delivery trucks
  • Work vans
  • Food trucks
  • Tow trucks
  • Construction vehicles and forklifts
  • Service utility trucks
  • Company cars


Hired And Non-Owned Vehicle Coverage

Sometimes employees use their cars for work or business purposes, and sometimes you have to borrow a rental car for a business trip. Most commercial auto insurance policy insurers often exclude coverage in these situations if you don’t purchase hired auto physical damage or non-owned auto liability. Typically, the cost of the additional coverage is minimal, but depending on your business, it may be beneficial to have it. 


Rental Reimbursement Coverage

Commercial auto insurance policies can also include rental reimbursement coverage. This coverage protects you or your employees if damage to a company’s vehicle during an accident occurs. It covers the cost of renting a replacement vehicle while your company vehicle is being repaired. 


Auto Accident Liability

Your commercial auto insurance policy should offer comprehensive liability coverage to help you pay for damages resulting from accidents. These damages may include:

  • Repair costs for damaged vehicles and property.
  • Legal & medical expenses if you are sued by the other driver.


Consider Purchasing Higher Limit For Comprehensive Protection

While it is understandable that you want to keep your business expenses as low as possible, it may be to your benefit to pay more to ensure you are covered in the event you are sued. Lawsuits are expensive and can cost tens of thousands of dollars just in attorney fees alone. Skimping on liability coverage will leave you in the lurch if someone sues your company due to an auto accident. Consider purchasing a comprehensive policy that offers you better protection.


Coverage For Other Types Of Damage

Sometimes, damage may occur to your company vehicle that is not the result of an auto accident. You can buy additional commercial auto insurance coverage, including physical damage to the car or theft. If your commercial vehicles operate in high-risk settings, you may want to consider the extra range that can include: 

  • Weather events
  • Other objects impact
  • vandalism
  • theft

Something as insignificant as a limb falling on your commercial vehicle can quickly add up with repair fees. Your commercial auto insurance would cover that repair costs, so you don’t have to reach into the budget. 


Final Thoughts

If your company uses vehicles during business, you should carefully consider the type of commercial auto insurance policy to purchase. 


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