Commercial Auto Insurance

Your commercial vehicles provide you and your team members with a convenient and essential mode of transportation for business activities. Regardless of whether your vehicles are used to transport cargo, to carry passengers or to accomplish any other tasks, you need to ensure that they are properly insured at all times. Commercial auto insurance is a legal requirement in most states, and there may be substantial penalties associated with operating uninsured vehicles. More than that, any automotive lenders that have provided financing for your vehicles may also have their own coverage requirements for you to comply with. Understanding these requirements is essential, but you also may consider purchasing more than the required coverages.

Each state has its own auto insurance requirements, and commercial requirements may be based specifically on the business activities that are completed with the vehicles. Auto lender requirements often are specifically related to repairing or replacing your vehicle if it is damaged, destroyed or stolen. Keep in mind that other types of commercial auto insurance may pay for damages that you create for other people, for medical expenses for yourself or others, for a rental car that you can use while your vehicle is being repaired and more. Remember that your insurance provider will only pay benefits up to the limits that you have selected for your coverage. The lender and state requirements for coverage limits should be a minimum, and you can explore the benefits associated with increasing the limits and purchasing optional coverages.

When you set up a commercial policy for auto insurance, there are two primary expenses that you may be responsible for. The first is your premium, which is the expense associated with maintaining active coverage. Some business owners will pay the premium in full, and others will set up a monthly payment plan. The second expense is a deductible. The deductible is only paid when you file a claim against the policy, and it is required for each claim. You typically can opt for a higher or lower deductible, and your selection of a deductible amount will impact the cost of your premium.