Why Invest in Commercial Auto Insurance?

Why Invest in Commercial Auto Insurance?
If your business maintains a fleet of vehicles, or even only one or two that are routinely used for business purposes, there are many good reasons why you should invest in commercial auto insurance.
In fact, even cars registered in the name of an individual that are used primarily as a business vehicle, should be covered by a commercial policy to get the best possible protection.

Here are 5 of the best reasons why you should consider purchasing commercial auto insurance:

1. Commercial Policies Give You More Cover
You can get liability, property damage, bodily injury, medical payments, uninsured motorist, collision, and cargo protection coverage on almost any commercial auto policy. And there are many other riders you can add that are customized to commercial needs and not available on non-commercial policies. Comprehensive cover is not at all uncommon.

But the fact is you can get much higher coverage limits, which is necessary since commercial vehicles may be heavier duty and liable to do more damage or cause more severe injuries in the event of a collision. Plus, your commercial vehicles will likely travel very high miles and be exposed, therefore, to higher risk.

All your limits can be higher than personal auto insurance, and you can likely get twice the liability coverage that will help in the case of a lawsuit.

2. All Your Employees Can Be Covered
With personal auto insurance, you can’t be sure you are covered regardless of which worker is driving the vehicle. But with commercial auto, you can.

As long as it’s a business vehicle or any vehicle covered by a commercial policy for that business, every employee will be covered while using it. And if they drive their own vehicle for a business purpose, it can also be covered. Even rental vehicles used for business reasons can be covered on some commercial auto policies.

3. You Want Your Business Fully Covered
To fully insure your business in every area where a liability is likely to eventually arise, you can’t neglect insuring your commercial vehicles. You probably have workers comp and may have professional liability and/or general liability in place. You may also have commercial property coverage.

But if you leave such a big “gap” in coverage as to have no commercial auto, you will likely be disappointed. Personal auto cover will often not be enough if/when you actually need to file a claim.

4. You May Have No Choice But to Buy Commercial
Some states actually require commercial vehicles to be covered by commercial policies, but even if that’s not the case in your state, there are many situations where it would difficult/impossible to find an insurer who would not insist on commercial auto coverage.
It will depend on how heavy of commercial use and what kind is involved, likely, but sometimes, commercial auto is the only practical option.

5. It’s Tax Deductible
Not only might you actually end up saving money by buying a commercial policy, should you ever need to file a claim. But commercial auto counts as a business expense, which probably won’t work in most situations with a personal auto policy.

That means you can recoup most or all of the money you spend on commercial auto anyway, so why not invest in it?

To learn more about commercial auto insurance, or to get a free quote, contact Flagler County Insurance Agency today. We can explain to you your options and find you your ideal commercial policy.