Commercial auto insurance is a business insurance policy that applies to autos owned by or used in your business that protects your business against liability for damages caused by accidents involving your business autos and provides certain compensation to occupants of your business autos injured in accidents. Commercial auto insurance covers specialized cars for specific jobs, whereas business auto insurance covers automobiles used for ordinary traffic travels. Since there are so many types of businesses with different needs and situations, commercial insurance can come in many shapes, sizes, and colors.
Here Are A Few Examples
- Any vehicle used for work purposes: You are liable for the insurance, whether it is one vehicle, five vehicles or 500 that you own and pay someone else to drive. It is the responsibility of the employer to sufficiently insure the vehicle. The good news is that the coverage is tax deductible.
- If employees use their vehicle: If an employee uses their vehicle for your business, you are responsible for the insurance for that vehicle. An example would be if an employee uses his truck for work-related driving you must put commercial car insurance on his vehicle.
- Self employed: If you are a sole proprietor of a small business and use the vehicle in any capacity other than commuting from home to the office you need commercial auto insurance.
- Independent Contractors: If you hire independent contractors, they are not employees so you are not responsible for their vehicles.
Choosing The Best Commercial Auto Insurance Policy For Your Small Business
- Liability insurance: This is a part of the general insurance system of risk financing to protect the business from the risks of liabilities imposed by lawsuits and similar claims. Bodily injury and property damage liability will cover loss of life or property, as well as damage and harm done to any person or property caused by the vehicle.
- Personal injury protection: Also known as PIP coverage or no-fault insurance, this covers medical expenses regardless of who’s at fault. It can often include lost wages, too. Depending on the state where you live, PIP may be an available insurance coverage or a required policy add-on.
- Collision insurance: This is a type of car insurance that covers damages to the insured’s vehicle when they are in a car crash, run into an object, or cause their car to roll-over. It covers all costs involved to tow, repair or replace the vehicle.
- Uninsured motorist insurance: This will protect you if you’re in an accident with an at-fault driver who doesn’t carry liability insurance. Underinsured motorist coverage steps in when you’re in an accident with an at-fault driver whose liability limits are too low to cover the medical expenses of any injured people.
- Comprehensive coverage: This will help to pay to repair or replace your car if it’s stolen or damaged by something other than a collision. Comprehensive typically helps cover theft and damage from vandalism and natural disasters, falling objects, fire, hail, flood or animals.
You May Need A Commercial Auto Insurance Policy If You:
- Transport goods or people for a fee in your vehicle
- Conduct a service with your vehicle
- Need higher limits of liability because of the nature of your work
- Haul a considerable weight in tools or equipment or tow a trailer used to conduct your business in your vehicle
- Employees operate the vehicle or if ownership is in the name of a corporation or partnership
Many business uses and vehicle types may be excluded from personal policies, so be sure you have the right coverage. Some people make the mistake of thinking that commercial umbrella insurance covers vehicles, but it does not always.
What Is The Difference Between Commercial And Private Car Insurance?
A personal auto policy usually covers one person driving their own car, but a commercial policy covers an entire business. That could include multiple drivers, multiple vehicles, trucks, and employees with poor driving records. Commercial auto insurance is only available for vehicles used for work purposes. Most personal auto insurance policies have exclusions, which means they may not cover your vehicle for business use or only offer minimal coverage for business use.
The Average Commercial Auto Insurance Cost
A small business can expect to pay anywhere from $600 to $2,500 annually for a commercial auto policy. The average cost varies per the type of vehicles insured:
- Commercial Truck: $800 to $2,000
- Commercial Car: $1,200 to $2,400 (if used infrequently, can be as low as $600 annually)
- Commercial Bus: $35,000+
- Delivery Vans/Box Trucks: $3,300 to $6,200
- Taxi/Limousine: $4,000 to $10,000
- Semi/Tractor Trailer: $8,000 to $12,000
The average cost of commercial auto insurance will vary depending on numerous factors, so it’s best to speak with a knowledgeable agent in your area to get accurate commercial auto insurance costs.
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About Gartman Insurance
About Gartman InsuranceWe are your trusted, family-owned independent insurance agency. Your family, your business, and your possessions are all important to you, but you may not know how to best protect them. We have the experience and local knowledge to navigate the unique risks you face, serving as your insurance advisor. Since 1999, Gartman Insurance Agency has proudly served our customers in Kentucky, Ohio, Indiana, Tennesee, and Alabama, helping them to find the right insurance coverage to fit their needs. Our customers are our priority, and we are always finding ways to better serve them, whether that’s helping them find a better policy or giving them the power of choice when it comes to their insurance coverage.
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