Commercial auto insurance is coverage for commercial vehicles. These vehicles can include trucks, buses, cars, and vans. The policy provides protection for commercial vehicles the same way a traditional policy protects an individual’s car. If you work alone, then you might not need commercial auto insurance. But having separate personal and business policies might not be such a bad idea.
This insurance is purchased by businesses and organizations that own or lease commercial vehicles. The Gross Vehicle Weight Rating determines if an automobile is eligible for commercial status. A driver must have an official commercial driver’s license to be officially written on an insurance policy. This means that a business owner might not have a valid license to operate their own fleets that are insured.
How it Works
You must have the correct documentation to get commercial auto insurance. An official title or lease document must be presented to the insurance agency. Commercial vehicles must also pass rigorous state and federal inspections. This is so the insurance company can make sure the vehicle is safe. The insurance agency has the right to refuse to insure a vehicle that’s old or has excessive mechanical issues.
A major type of coverage is liability. It protects drivers and passengers who are involved in an accident between a commercial vehicle and other automobiles or pedestrians. This coverage will pay the medical bills of the injured. There is also collision insurance, which can be used to repair the body and mechanical components of commercial vehicles. Comprehensive insurance covers several scenarios, including damage that results from extreme weather, fire, and other problems.
Any business that has commercial vehicles will benefit from commercial auto insurance. Large vehicles are expensive to repair or replace. And if you have a fleet, you need to have them all covered. If you’re a business owner, then commercial auto insurance is a smart move for your vehicles.