The Ins and Outs of Commercial Auto Insurance: A Guide for Business Owners

As a business owner, you can evaluate your commercial auto insurance needs according to your vehicle’s use. Which means it depends totally on your auto vehicle usage. Suppose your car or any other vehicle is used roughly daily because it is your business auto vehicle. In that case, you should take auto insurance coverage. 

Though your auto vehicle is still not heavily or roughly used, you should consider insurance coverage because you should not take any risks regarding safety. It is beneficial for you to have commercial auto insurance.

We will provide brief information about commercial auto insurance in different sections of this article. Before diving in, firstly, you should know about business auto insurance policies. So, let’s read below.

What Is A Commercial Auto Insurance Policy?

Commercial auto insurance policy provides you with various coverages for your business vehicles. It covers cars, trucks, vans, and other vehicles used in your business. Here are some insurance types and coverage you need to be aware of-

Physical Damage Insurance 

The name of the insurance clarifies that this insurance can be claimed on any physical damage to the vehicle you own. Two coverages come under this section.

• Collision Insurance- You can claim collision insurance if your vehicle is damaged or destroyed in an accident with another vehicle; it doesn’t matter who is at fault.

  Medical expenses are also covered under this kind of insurance. For example, your driver gets injured while completing a delivery. In such cases, the medical bills of the driver will be covered.

• Comprehensive Insurance –This covers damage to your car from natural disasters, animals, theft, vandalism, etc. It does not cover damage to people or vehicles. For instance, if a bull injured your car, it would be covered under comprehensive insurance.

Liability Insurance

This type of insurance protects you against lawsuits that claim injuries or damage to other people or property. Example- Let’s say your driver is on duty, and suddenly, he loses control of the vehicle. He ends up hitting and injuring a guy walking to the nearby park.

The injured person can sue your business for damages. Liability insurance can help in such cases. 

Uninsured Motorist Coverage

This coverage pays for the damages caused by any uninsured vehicle. According to the policy, it will help you pay for the cost limits in your policy. You can claim this insurance if you are hurt, or your vehicle has been damaged in an uninsured vehicle accident.

An example of this could be how you don’t need to pay out of your pocket if your business vehicle gets injured by an insured vehicle. 

Underinsured Motorist Coverage

This insurance pays if you and your vehicle have been damaged by an uninsured vehicle or not having enough insurance. It also covers medical bills and lost wages for you and the people present in your car.

Example- Suppose your employee is on a business trip in your car and gets injured by another vehicle. You soon discover that he doesn’t have enough insurance to cover your employee’s medical bills. There is where underinsured motorist coverage will come in handy.

Are you from Illinois looking for various auto insurance types that meet your needs? Some business owners only take minimum limit coverage; in such cases, taking this kind of coverage is wise. Illinois auto insurance experts are here to help.   

When Is Commercial Auto Insurance Required For Your Business?

If you have any transporting business, you need commercial auto insurance. According to our law, it is essential to have vehicle insurance; regardless it is for personal or professional use. 

It’s generally against the law to have any vehicle without insurance. Though if you have a transport business of migrating people and goods across state lines, you need commercial auto insurance for the vehicles.

Commercial auto insurance is an essential requirement for most business owners. However, knowing the ins and outs of commercial auto insurance is more challenging than it looks. Some insurance protects you against damage from another vehicle but also against acts like theft and vandalism. Underinsured coverage can help if the other driver doesn’t have enough coverage to meet the injured party’s medical bills.

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