Commercial auto insurance is a form of insurance coverage that helps cover commercial vehicles such as cars, Lorries, and vans. Vehicle damage and driver injuries are covered by commercial auto insurance.
Just like your personal auto policy, commercial vehicle insurance includes coverages such as liability, collision, comprehensive, medical payments (or personal injury protection), and uninsured motorist coverage. However, there are certain distinctions between a commercial auto insurance policy and a personal auto insurance policy, such as eligibility, definitions, coverages, exclusions, and restrictions.
Commercial Auto Insurance
Liability damages; collision or comprehensive physical damage loss to your business autos; medical expenses for injury to occupants of your business autos; and damages sustained by occupants of your business autos due to the negligence of an uninsured or underinsured motorist are all common coverages under commercial auto insurance.
Physical damage coverage is provided for vehicles you own, lease, hire, or use in your business, as well as liability coverage for personal injury and property damage caused to others by your use of the insured business vehicles.
Commercial Auto Insurance
Within a commercial auto policy, there are four major types of insurance that are usually offered.
Auto Liability Coverage
Liability coverage is a component of your auto insurance policy that pays for the other driver’s expenses if you cause a car accident. However, it does not cover your own. It’s crucial to understand that liability insurance comes in two varieties: bodily injury and property damage.
Medical Payment Coverage
In most jurisdictions, medical payment coverage, often known as MedPay, is an additional coverage option for auto insurance policies. This policy can help pay for medical expenses for you or your passengers in the event of a car accident, even if you are at fault.
MedPay covers a wide range of charges related to injuries sustained in a vehicle accident. It pays for medical expenses such as health insurance deductibles and co-pays, doctor or hospital visits, X-rays and surgery, ambulance and emergency medical technician fees, rehabilitation and nursing care, and some medical equipment like prostheses.
Uninsured Motorist Coverage
Uninsured motorist coverage, mostly known as UM or UMBI, is a type of car insurance that can pay for medical bills if you or your passengers are injured in a car accident caused by one of the following:
Uninsured motorist coverage compensates you for damages caused by a driver who does not have automobile insurance. If you are injured or your vehicle is damaged in a crash caused by such a driver, this coverage will assist in covering the costs, according to the limits of your policy.
Comprehensive and Collision Coverage
The types of situations they cover differ. If you are hit by another car or item, collision insurance can help cover the costs of the damage. Comprehensive insurance covers damages that do not come from crashes, such as theft, vandalism, animal damage, fires, and other incidents.
Comprehensive coverage protects your vehicle from unexpected damage, such as a tree branch falling on it or hitting an animal, while collision coverage protects against collisions with another vehicle or object.
Best Commercial Auto Insurance Companies
In this guide, we identify the best commercial auto insurance companies for different types of businesses, including small businesses and contractors.
Axis Insurance
Axis Insurance Services, LLC, is a professional liability insurance brokerage that creates customized coverage solutions to meet your specific insurance needs as your company expands and grows. They can quickly identify coverage gaps in your current policy and assist you in prioritizing and selecting appropriate limits, allowing you to put in place a successful program to manage and handle your risks.
Farmers Insurance
Farmers Insurance is a reputable insurance business with positive client evaluations and a plethora of policy customization possibilities. You will, however, pay a premium for its outstanding customer service. Auto and homeowner’s insurance prices were around 14% higher than the national average.
If you’re seeking the cheapest insurance, you’ll probably find it with another business. Farmers, on the other hand, are an excellent alternative if you’re willing to pay a little more to customize your insurance and have a seamless claim experience.
The Hartford
The Hartford Financial Services Group, Inc., or simply The Hartford, is a financial services and insurance firm established in the United States. Hartford is a Fortune 500 corporation headquartered in Hartford, Connecticut. In the year 2020, it was rated 160th on the Fortune 500.
Hartford is a market leader in property and liability insurance, as well as group benefits and mutual funds. We are honored to have received widespread recognition for our customer service quality, sustainability practices, trust, and integrity.
Progressive
Progressive is the nation’s largest business auto insurer, providing a comprehensive range of services. Liability, bodily damage, medical payments, uninsured motorist, hired auto, any auto, and non-owned coverage are all available. Progressive can also cover a wide range of vehicle types, including commercial vehicles, trucks, and trailers.
Frequently Asked Questions
A Commercial Auto Insurance policy covers what types of vehicles?
Box trucks, food trucks, labor vans, and service utility trucks are just a few examples of larger commercial vehicles that may necessitate commercial auto insurance coverage, which may include coverage for the people operating the vehicle as well as the equipment within.
What is covered by commercial automobile insurance?
Like your personal auto policy, commercial vehicle insurance includes coverages such as liability, collision, comprehensive, medical payments (or personal injury protection), and uninsured motorist coverage. However, there are certain distinctions between a commercial auto insurance policy and a personal auto insurance policy, such as eligibility, definitions, coverages, exclusions, and restrictions.
Can others drive my business vehicle?
Other people may drive your vehicle with your permission. It is important that they be listed on your policy if they are regular drivers of the vehicle.
What is the cost of commercial auto insurance?
The cost of commercial auto insurance is determined by the coverage you select. It also depends on your coverage limits (the most money an insurance company will pay towards a covered claim) and deductible (the amount you pay out of cash before insurance kicks in).
How can I obtain commercial insurance?
Your current Allstate Business Insurance agent can assist you in obtaining commercial auto insurance if you already have an Allstate Business Insurance policy. To get started, contact an Allstate Business Insurance representative.
