Commercial auto insurance

Commercial auto insurance

Commercial auto insurance is a type of insurance that protects businesses from financial losses if their vehicles are involved in an accident. It covers physical damage to the vehicle, bodily injury to others, and property damage caused by the vehicle. Commercial auto insurance is mandatory for all businesses that own or lease vehicles that are used for business purposes.

Commercial auto insurancE
Commercial auto insurancE

What does commercial auto insurance cover?

Commercial auto insurance covers a wide range of risks, including:

  • Physical damage to the vehicle: This covers damage to the vehicle caused by an accident, theft, vandalism, or other covered perils.
  • Bodily injury to others: This covers injuries to other people caused by the vehicle, whether the business is at fault or not.
  • Property damage: This covers damage to other people’s property caused by the vehicle.
  • Uninsured/underinsured motorist coverage: This covers injuries to the business’s employees or passengers if the other driver is uninsured or underinsured.
  • Medical payments coverage: This covers medical expenses for injuries to the business’s employees or passengers, regardless of who is at fault.
  • Loss of use coverage: This reimburses the business for the cost of renting a replacement vehicle while the damaged vehicle is being repaired.
  • Towing and labor coverage: This covers the cost of towing and labor to repair the vehicle.

How much does commercial auto insurance cost?

The cost of commercial auto insurance varies depending on a number of factors, including the type of vehicle, the business’s location, the business’s driving history, and the level of coverage. Businesses with a high risk of accidents or claims will typically pay more for insurance.

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How to get commercial auto insurance

Commercial auto insurance can be purchased from a variety of sources, including insurance agents, brokers, and online insurance companies. Businesses should compare quotes from multiple providers to find the best rate.

Tips for saving money on commercial auto insurance

There are a number of things businesses can do to save money on commercial auto insurance, including:

  • Increasing the deductible: The deductible is the amount of money that the business is responsible for paying before the insurance kicks in. Increasing the deductible can lower the premium, but it also means that the business will have to pay more out of pocket in the event of an accident.
  • Taking driver safety courses: Businesses can get discounts on their insurance premiums by having their employees take driver safety courses. These courses teach drivers how to avoid accidents, which can help to reduce the business’s risk of claims.
  • Installing safety features in vehicles: Businesses can also get discounts on their insurance premiums by installing safety features in their vehicles, such as airbags and anti-lock brakes. These features can help to reduce the severity of accidents.
  • Shopping around for the best rate: Businesses should compare quotes from multiple insurance providers to find the best rate. The price of commercial auto insurance can vary significantly from provider to provider.

By following these tips, businesses can save money on commercial auto insurance and protect themselves from financial losses in the event of an accident.

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