Are you a business owner who uses multiple vehicles to transport goods to various locations? Or, does your business require the use of a heavy duty vehicle like a dump truck or tow truck? If you answered yes to either of these questions, then you should think about getting a commercial auto insurance policy. These policies differ from personal auto insurance policies in regards to who drives the vehicle, what the vehicle is used for, and the type of vehicle being used.
This type of insurance is typically used by small businesses with multiple employees driving company-owned vehicles. Think of the plumbing vans that you see in your neighborhood or driving around town. These vehicles are most likely covered by a commercial auto insurance policy; the vehicle is owned and insured by the company as opposed to an individual. Another example of commercial policies in use would be your local pizza delivery shop: multiple drivers operating multiple vehicles.
Commercial automotive insurance works just like regular auto insurance: if the vehicle is involved in an accident, then the insurance company will cover most of the costs associated with the incident, such as repair work to the vehicle. The driver of the insured vehicle will often have to cover the cost of the payment up to a certain point, known as a deductible. The specific amount to be paid will vary depending on each individual policy.
Both commercial and personal auto insurance policies help cover the following situations:
• injuries you sustain, or that you cause to others
• damages to your vehicle or another’s vehicle
• damages to your property or another’s property
• damages caused by a driver with inadequate insurance coverage
The big difference is that specific insurance policies can also be purchased for vehicles like snow plows, tow trucks and box trucks. These vehicles can cause high amounts of damage, and commercial policies offer correspondingly high amounts of coverage.
Even if you never end up needing it, commercial automotive insurance is a good thing for any business to have.