Four Commercial Automobile Insurance Facts That You Should Know

Posted on: 31 March 2021

If you need to insure any vehicles that you use for your business, it's important to choose a commercial automobile insurance policy that can give you the right amount of coverage. Knowing what to look for when shopping for insurance plans can help save you time and avoid certain problems that could make finding the right policy more difficult. By educating yourself on these four commercial automobile insurance facts, you'll have many of your questions answered.

1. Liability is covered.

Like with most personal auto insurance plans, you'll be protected against certain legal liabilities under a commercial automobile insurance policy. If you're worried that your business might face lawsuits because of auto accidents, you can rest assured that your plan will cover the cost of certain losses that were suffered by the other parties who were involved in the accident. Your commercial automobile insurance plan may cover expenses of the other parties, such as:

  • Vehicle repairs or replacements
  • Loading and/or unloading damages
  • Medical expenses
  • Property losses
  • Lost work wages

If you want extended coverage, you can choose to add collision, vehicle theft, and other types of coverage to your policy for further protection.

2. Canceling your policy early may incur additional costs.

You may want to cancel your insurance policy before the term expires to try to save money, but doing so could actually cost you more in the future. If you wish to start coverage with your current provider or through another carrier again, you may be charged a higher rate for canceling your coverage early in the past. You may face even steeper costs if you cancel your plan early and get into an accident.

3. Having commercial automobile insurance is advised even if you use your personal vehicle for work.

If you get into an accident, one of the first things that the insurance company will ask you is if you were using your vehicle for work while you were driving. A standard auto insurance policy for driving a personal vehicle may not cover you if you're using your own vehicle to conduct your work, so it's best to get a commercial automobile insurance policy if your vehicle is used for any work-related purposes.

4. Your employees' driving histories can impact your coverage rate.

Many providers of commercial automobile insurance take into account the driving histories of each person who will be driving a company's vehicles. This means that you should be especially diligent about checking the driving records of any people who you're thinking of hiring, as this may impact how much you'll pay for coverage.

Learning the ins and outs of commercial automobile insurance will help you become a smarter shopper when it's time to choose a policy. A trusted insurance provider can enroll you in a plan that gives you all the coverage that you need to operate all commercial vehicles in your fleet in the most responsible manner.