What Is Covered By A Commercial Auto Insurance Policy?
Commercial auto insurance is designed to help cover medical payments and property damage related to an accident with that vehicle. It also helps cover any legal expenses that might be related to the incident Many commercial auto insurance policies can also cover vehicle theft, vandalism, and other losses and damages.
Commercial auto policies typically include liability insurance to cover your business’s legal costs should an employee get into an accident with a company-owned vehicle.
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A company that owns a service vehicle needs to carry some degree of commercial auto insurance. This is a policy that goes beyond the basic liability or comprehensive coverage that you might need for your commuter vehicle. It’s important to note that nearly every state requires commercial auto insurance coverage for business-owned vehicles.
Who Needs Commercial Auto Insurance?
Most states require companies to carry commercial auto insurance as a matter of law. Even if your state doesn’t require commercial it’s still a good idea to get a policy if:
- You have a vehicle titled to your business
- Drive to and from job sites
- Use a company vehicle for deliveries
- Carry tools, equipment, or products used for work in a company vehicle
- Transport clients in a company vehicle
- Transport employees in a company vehicle
- Rely on delivery drivers or couriers
Will Commercial Auto Insurance Cover Employees’ Personal Vehicles?
Employees who drive their own personal vehicles are not generally covered under a commercial auto insurance policy. If you do have employees who sometimes drive personal cars for business purposes, then you should consider buying hired and non-owned auto insurance. This is an additional policy that will provide them with coverage while driving their own vehicle for company purposes.
It also provides coverage for:
- Employee-owned vehicles
- Vehicles leased by a business
- Vehicles rented by a business
What’s The Difference Between Commercial & Personal Auto Insurance?
With a commercial auto insurance policy, you have coverage that is designed for business vehicles that drive a lot of miles in a typical fiscal year. These policies typically have higher coverage limits to account for the increased risk exposure.
With a personal auto insurance policy coverage only extends to claims related to personal use. This includes things like commuting and travel unrelated to work. These personal auto insurance policies typically have lower limits and usually cost less.
How Much Does Commercial Auto Insurance Cost?
The average cost for a commercial auto insurance policy is around $142 per month. Though, several factors can affect the rate.
- Number of vehicles that require coverage
- Vehicle type of vehicle
- The value of the vehicle
- Level of risk involved
- The company’s claims history
- An employee driving records
- Policy deductibles and limits
Auto Insurance Policies For Vintage/Classic Cars
What Qualifies As A Classic Car?
To be considered a “Classic” or “Vintage” car the vehicle in question must meet some key criteria. Such as:
- A new exotic car
- A new replica car
- A classic military vehicle
- A hearse or fire truck, etc.
The vehicle’s purpose is also a factor in that it must be:
- Only used only for exhibitions or club activities
- Only used occasionally for pleasure/leisure
- It is not a primary means of transport
- The vehicle is always stored in a fully enclosed and locked structure
Classic or “Vintage” cars are a true investment that cannot be easily replaced. That’s why many classic car owners take out a separate classic car insurance policy. This provides liability coverages, uninsured and underinsured motorist coverage, and medical coverages like personal injury protection or medical payments coverage. Many classic care insurance policies also include coverage for purchase towing and roadside assistance reimbursement.
What sets a classic car insurance policy apart is the coverage it provides for your vehicle under collision and comprehensive coverages. This level of coverage will be based on the agreed value of your vehicle. It is an amount determined between you, as the owner, and the insurer on the value of the vehicle the policy is written for. It typically follows industry guidelines and is generally reviewed upon policy renewal.
Having a company like Healy Brokerage on your side will help decode the negotiation process to ensure that you get exactly the level of coverage your classic car needs at the best possible rate.