But before you can even begin to compare insurers, formulate your “ideal policy,” and make a decision, you first need to understand the nuts and bolts of what commercial auto includes.
Basic Elements Of Commercial Auto Insurance
In Florida, commercial auto insurance will include the same elements as non-commercial cover, only more. Also, a commercial policy will generally only be active while a specifically “named driver” is in the driver’s seat.
First, you will generally want to get more coverage for property damage and bodily injury liability when covering a commercial vehicle than a personal vehicle.
The risks of having an accident are higher because commercial vehicles tend to be on the road more frequently and because of the size and weight of commercial vehicles often being greater. You can’t risk heavy liabilities due to a car accident sinking your business or causing a major setback.
Many commercial policies will use a “combined single limit” rule that gives you equivalent cover per accident regardless of whether its property damage or bodily injury or if it involves one or more than one person.
Next, your policy should include medical payments coverage, which will pay for medical expenses of your own driver and/or passengers injured in your commercial vehicle. This cover applies no matter who was the at-fault party. Similarly, collision will pay for any damage done to your business’ vehicles in the event of a crash.
And just like with personal auto insurance, you can get comprehensive coverage that will guard against theft, vandalism, or the damage/loss of your commercial vehicle due to things like fires and floods.
Finally, be sure your policy includes un- and under- insured motorist insurance (UM) since there are far too many cars on the road in Florida that are un-covered or under-covered. Otherwise, you risk being unable to collect compensation owed to you after an accident regardless of what the law may stipulate.
Special Types Of Commercial Auto Policies
But besides the “usual” commercial car insurance policies, there are also special policy-types you might need, depending on what kinds of vehicles you have in your fleet. For the most part, these special policies have to do with trucks rather than cars.
First, tow truck insurance is a special need. It adds “on-hook towing” cover in case a towed vehicle gets damaged and “garage keeper’s liability” cover in case a stored/parked vehicle in your care gets damaged, vandalized, or stolen.
Second, there is “cargo insurance,” which is used with trucks that carry any significant type of cargo with any degree of frequency. The coverage will protect you from liability to accidental damage to the cargo being hauled.
Third, you may need “bobtail” insurance, which keeps you covered while you are using a commercial vehicle for personal use.
To learn more about the many costly risks commercial auto insurance can guard you against, contact Flagler County Insurance Agency today!