Commercial auto insurance is a specialized policy of liability and physical damage coverages for various occurrences, amounts, and use not covered by an average personal auto insurance policy. This kind of business insurance also covers several kinds of commercial automobiles, such as business automobiles, to an assortment of cars used for personal reasons, such as company cars. One kind of commercial car insurer is the so-called private party insurer. The name itself says it all: it is an insurer that insures only for specific kinds of customers, like private party drivers. Another kind of commercial auto insurance is the fleet insurance. Both of these kinds of commercial car insurers have their own benefits and drawbacks.
It is a wise precaution to get quotes for commercial auto insurance from more than one provider. It is not only because of your current financial situation but also of your long-term financial commitments. The quotes offered by companies differ in terms of coverage, limits of liability, deductibles, premiums, and physical damage limits. Different companies also offer different kinds of coverage. Therefore, before you sign up for any policy, you should check if your preferred provider offers the type of coverage you need for your commercial vehicle insurance policy.
Physical damage coverage is an important part of any commercial auto insurance, especially if the insured is involved in an accident involving bodily injury or property damage caused by the insured vehicle. It is the physical injury or property damage that the insurance company will settle with the owner of the other vehicle, and it is the bodily injury or property damage that the insured will be responsible for covering. The physical damage coverage of a commercial auto insurance policy will reimburse the owner for medical and property damage that was inflicted on him or her during the accident.
Liability coverage is not just for accidents. It also provides protection from legal suits as a result of damages to properties or injuries inflicted by the insured vehicle or its driver while operating the company car. Liability coverage will cover damages to the insured vehicle or its driver caused by the operation of the vehicle or its owner in violation of traffic or business regulations. If the person causing the accident has no insurance, the law requires that he or she has to pay for the damages to properties and injuries inflicted on him or her. It is important to note, however, that liability coverage will not cover damage caused by a company car while it is in operation, as the vehicles are not private property and are not carrying any insurance when in operation.
A business owner who wants to get the best commercial auto insurance coverage can choose among several types of general liability insurance policies. For example, if a business owner owns several cars and employs more than one person to work in a particular office, he or she might need to get a separate general liability insurance policy to cover the employees’ health and property damage liabilities incurred during the course of employment. In this case, the company car would be considered a valid vehicle for purposes of the policy. This kind of policy will help the business owner to protect his or her own assets as well as those of his or her employees.
When choosing the right commercial auto insurance policy, it is necessary to consider the type of vehicle used by the company to operate. If the vehicles are all enclosed vans with outboard engines, the vehicle’s body structure will be subject to collision damage at the hands of the insured when an accident occurs. This is the main reason why an owner must always ensure the safety of his or her vehicle by ensuring that the vans meet the requirements for safe driving. Furthermore, any collision damage caused to the vehicle due to another vehicle will not be covered by the commercial auto insurance.