You may be wondering why there should even be a separate type of car insurance for commercial vehicles. There are several reasons.
First of all, commercial auto provides higher coverage limits for insured vehicles. And this is quite necessary since commercial vehicles typically travel more miles on busy roadways as compared to non-commercial vehicles.
Secondly, a commercial policy will include unique coverage areas – on top of those familiar from regular auto insurance like property damage liability, medical payments, and PIP (personal injury protection).
For example, a commercial auto policy may include loading/unloading liability, cargo insurance, trailer insurance, towing coverage, non-owned and rented vehicle cover, and other commercial-specific coverage types.
Typically, you would buy comprehensive and collision coverage for commercial vehicles and add on uninsured and underinsured motorist protection as well.
Having all of your employees who drive a business vehicle for a business purpose fully covered at all times is crucial. You can’t afford to have your business profits constantly drained every time a vehicle accident occurs.
When Should You Get Commercial Auto Insurance?
Whenever you have a business-owned vehicle that can’t be insured with personal auto insurance, you have little choice but to insure it with commercial auto. If you rent or lease vehicles for businesses purposes, it is wise to cover that with a commercial policy too – because the insurance you can buy from rental car companies is often both inadequate and over-priced!
Special vehicles like dump trucks, toe trucks, SUVs and vans used by businesses, taxis, all manner of delivery vehicles, and a host of large and semi-large trucks all should be protected with commercial auto insurance.
Any vehicle that must be registered with the state of Florida as a commercial vehicle and wear a commercial license plate needs a commercial policy, not just personal auto insurance. There are some situations where you may use your private vehicle for business errands (say, as a business owner or manager) and cover it with a personal policy – but even then, you can additionally cover it under your commercial policy during such uses.
If a vehicle is used by your business to carry equipment, transport hazardous materials, tow other vehicles, truck freight, transport persons for a fee as with taxis and limos, or even just deliver pizzas or newspapers, it should have commercial vehicle insurance.
Finally, note that many business owners opt to buy a commercial umbrella policy that includes commercial automobile coverage as an integral part of it. This approach can get you much higher coverage limits, where each increment of coverage adds a million dollars. If you have real estate to insure and need commercial general liability insurance aside from commercial vehicle coverage, this umbrella strategy might be right for you.
Going even a short period of time without commercial auto insurance coverage on your business’ commercial vehicles is running a great risk. Insuring business vehicles with a specifically commercial policy is both good sense and the law.
To learn more about how commercial auto works, or to get a free, no-obligation quote, contact Flagler County Insurance Agency today!