Commercial Vehicle Insurance: Know about Tips , Cost and Coverage

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Commercial Vehicle Insurance is a form of motor insurance for commercial vehicles that covers solely commercial vehicles that transport products, passengers or goods and miscellaneous vehicles, such as cranes, tractors, JCBs excavators, etc. Commercial vehicle insurance offered by Chola MS General protects employees, third party property and persons who are at risk and passengers. It offers financial protection and assistance during emergencies, natural disasters and other incidents.

Commercial Vehicle Insurance : Commercial vehicle insurance can protect the assets of a company in the event in the event of an accident, or any other unexpected events. This ensures the continuity of business operations and minimizes the risk of financial losses. It is a cost-effective option since it will help reduce the financial burden of an accident instead of being able to pay the full expense out from the pocket.

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How Does It Work?

Commercial Vehicle Insurance : If your company’s fleet is small or large it is essential to insure your vehicles for business use by obtaining an insurance policy for commercial vehicles.

In the absence of commercial auto insurance on your company vehicles could make your company vulnerable to financial loss in the event of an accident.

What Is Commercial Auto Insurance?

Commercial Vehicle Insurance : The commercial insurance is a form of car insurance that is specifically designed to be used on vehicles for business purpose. It’s an agreement between you and your insurance company, which outlines how your insurance company pays you for financial losses in the event that the business vehicle injured in an accident, or another issue which is covered under the insurance policy.

Commercial Vehicle Insurance : Business vehicles be classified as commercial vans and trucks. Food trucks and boxes are additional types of cars that may be covered under commercial insurance for automobiles.

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The insurance on your car will not cover a claim if you’re driving for business and end up in an accident.

Here are some instances where you’ll require a business auto insurance policy

  • The car is only used for work purposes and is a vehicle for company use.
  • The van or truck is part of the company.
  • You provide a business service using your vehicle.
  • You transport equipment or tools in a company vehicle.
  • You require high liability insurance limits.
  • You move people or goods using your van, car or truck to work.
  • Employees drive a company vehicle.

How Does Commercial Vehicle Insurance Work?

Commercial Vehicle Insurance : Commercial auto insurance functions like the personal insurance policy, however it also covers work vehicles like delivery trucks, delivery vans and company vehicles. It will pay for damages to property and injuries to others when employees or you cause accidents while operating the work vehicle.

Commercial Vehicle Insurance : Commercial auto insurance will also cover to fix or replace the vehicle you use for work when you purchase additional types of coverage, such as the comprehensive and collision type of insurance.

What Does Commercial Auto Insurance Cover?

Commercial Vehicle Insurance : Although commercial auto insurance is like the personal insurance for automobiles, the two differ in terms of who is eligible, coverage limitations, exclusions and coverage. For instance commercial insurance plans typically provide higher liability limits as compared to personal auto insurance policies.

Type of coverageWhat it covers
Bodily injury liability insurancePays for others’ injuries that you or an employee accidentally cause and your legal costs if you’re sued over the incident.
Property damage liability insurancePays for damage to another person’s property if you or an employee cause an accident. It also pays for your legal costs if you’re sued over the incident.
Combined single limit (CSL)CSL provides one overall limit for bodily injury and property damage claims against you rather than two separate limits.
Personal injury protection (PIP)Pays for medical expenses and other costs (such as lost wages) for you and your passengers, no matter who caused the car accident.
Medical payments (MedPay) coveragePays for medical expenses and other costs (such as funeral fees) for you and your passengers no matter who caused the accident. MedPay does not cover lost wages and is usually sold in small amounts between $1,000 and $5,000.
Collision insurancePays to repair or replace your work vehicle after a car accident.
Comprehensive insurancePays to repair or replace your work vehicle for problems such as theft, vandalism, fire, falling objects and collisions with animals.
Uninsured motorist (UM) coveragePays for injuries to you and your passengers if you’re hit by an uninsured driver. In some states, you can also buy UM coverage that pays for damage to your vehicle from an uninsured driver.
Underinsured motorist (UIM) coverageHelps cover your medical bills if you’re struck by a driver who doesn’t have enough liability coverage to pay your medical bills
Commercial Vehicle Insurance

What Is Commercial Auto Insurance

There are many additional commercial auto insurance coverages such as:

  • Insurance for gap. If you owe more on the loan or lease than the amount of the total work vehicle, gap insurance will help you pay the difference.
  • The new replacement for your vehicle. If your work vehicle is damaged, new vehicle replacement could help you buy a replacement vehicle.
  • Reimbursement for rental cars. If your insured business vehicle is currently in the repair shop because of the issue covered under insurance, rental car reimbursement can be used to in the payment of a rental vehicle.
  • Roadside assistance coverage. If your insured car that you are using for business is unable to function due to an issue such as flat tires or dead battery, Roadside Assistance insurance will with a tow or jump start, as well as other services.
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What Isn’t Covered by Commercial Vehicle Insurance?

Commercial auto insurance doesn’t cover:

  • Personal vehicles used to work.
  • Vehicles used to rent for work.
  • Equipment and tools that are not attached to a commercial van or truck are not covered by commercial property insurance policies, but can be protected against loss and damage in an commercial policy. policy.
  • Cars of customers, however damage or theft of the cars of your customers due to conditions like extreme weather, vandalism, or fire will be covered by the garagekeeper’s insurance.

What Kind of Vehicles Are Covered by Commercial Car Insurance?

The commercial vehicles covered by commercial auto insurance are:

  • Box trucks
  • Cars for company vehicles
  • Commercial trucks and vans
  • Food trucks
  • For-hire livery
  • Tow trucks

Why Do You Need Commercial Vehicle Insurance?

Commercial Vehicle Insurance : The absence of commercial auto insurance could result in having to cover the cost of damage or injuries that occur to the vehicles of your company.

Without coverage the business could be paying legal costs and medical bills when you or your employee get injured during an accident that involves an office vehicle. Additionally, you will have to cover the cost of damages, injuries, and lawsuits for those who are in other vehicles or the property owners.

Commercial vehicle insurance also provides collision and comprehensive insurance, that helps you repair or replace the vehicle you use in the event of car accidents, thefts vandalism, floods storms that are severe, fires or collisions with other animals.

Car insurance will not cover you when you’re driving for work and end up in an accident.

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Who Is Covered By Commercial Auto Insurance?

Commercial Vehicle Insurance : Commercial auto insurance protects you and your employees who operate an official vehicle identified in the policy. Add any employee who drives regularly commercial vehicles to a commercial auto insurance policy.

How Much Does Commercial Auto Insurance Cost?

Commercial Vehicle Insurance : The commercial auto insurance can cost about $147 per month on average According to Insureon. However, Insureon believes that over two thirds (37 percent) of its small-business customers are paying less than $100 per month to cover commercial automobile insurance.

The cost of commercial auto insurance will be based on things like:

  • Size of the business
  • Risks for business and driving
  • The number of employees who drive insured vehicles
  • Vehicles in the number
  • The types of vehicles
  • Valuation of automobiles
  • History of claims
  • Driver records of employees
  • The policy deductible
  • Limits to coverage of the policy

What is Hired and Non-Owned Auto Insurance?

Commercial Vehicle Insurance : An insurance plan for commercial vehicles does not cover personal cars or rental vehicles you utilize to work. If you are renting your company vehicle or have employees occasionally use personal cars to run errands for work take into consideration “hired and non-owned auto insurance.”

Commercial Vehicle Insurance : The insurance pays for any legal claims against your business that are involving a vehicle your business does not have. For instance in the event that the employee is responsible for causing a collision on the way to a workplace, the victim may sue your company. Non-owned and hired auto insurance will cover these scenarios.

Tips for Buying Commercial Auto Insurance

Check this list if you’re looking for commercial automobile insurance:

  • Find a sufficient amount of insurance. Make sure you have sufficient commercial insurance for your vehicle to guard the things that could be taken away from you in the event of a lawsuit when there’s an accident that results in you being in a lawsuit. In the event of a lawsuit, for instance, you’ll need to purchase liability insurance above the state’s minimum. Nationalwide recommends at minimum $500,000 liability coverage per vehicle.
  • Speak to the agent. Don’t hesitate to seek the help of an insurance professional. An agent can help find the best policy for your company that includes specific coverage for commercial vehicles to cover the work you perform.
  • Add uninsured/underinsured motorists coverage. This coverage pays for you and your passengers’ medical bills if you’re hit by someone who doesn’t have liability insurance or doesn’t carry enough liability insurance.
  • Do some research on the company that you are considering. Take time to investigate the insurance provider you’re considering for commercial automobile insurance. Do not just rely on the price. You should compare the insurance coverages and read reviews of various firms.
Commercial Vehicle Insurance
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FAQ – Commercial Vehicle Insurance

Who is insured to operate in my business vehicle?

Insurance for commercial vehicles typically covers employees with the right to operate the company’s vehicles which are listed on the policy.

Does my trailer get insured with the commercial insurance of autos?

Your trailer could be covered automatically by your commercial liability auto insurance policy if it falls within a certain size, like three thousand pounds of total vehicle weight. If your trailer weighs greater than 3,000 pounds in total vehicle weight then you might need to include the trailer in your insurance policy. The maximum weight limit for automatic coverage varies according to the company. So be sure to speak with your agent to determine whether you are required to include your trailer.
If you’d like to have your trailer protected from issues like car accidents or theft You’ll probably be required to register your trailer, regardless of its weight.

Are there any other kinds of insurance for business that I might require?

Other types of small-business insurance to cover for accidents and property damage that is caused by other people, damages to your business’s property as well as lost revenue because of issues such as fire, theft and extreme weather.
An business owners’ policy (BOP) can be the ideal place to start. It provides three essential coverage types that deal with these kinds of issues and many more. It is also possible to add additional kinds of coverage to your BOP such as workers’ compensation insurance. This is often mandatory even if you employ only one employee.

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