Choosing Between Different Types of Commercial Auto Insurance – The Easy Way

However, running a business that involves the use of cars can be complicated, but dealing with commercial car insurance can be more difficult, especially when you don’t know which one is the right one to choose from. One of the most challenging decisions you will make as a business owner is choosing the right insurance policy that is capable of protecting your business assets, as well as your employees, against unexpected financial losses and the threat of a lawsuit. The first step in choosing the right type of auto insurance is understanding the different types of commercial insurance coverage that are available.

Basically, commercial auto insurance divides vehicles into two main categories

• Private passenger cars, such as cars, vans, sport utility vehicles, and small trucks.

• Trucks, trailers, and tractors including pickup trucks, dump trucks, dry cargo, cooler box, car transporter, tanks, etc.

There are two main categories of commercial auto insurance: general insurance and specialty commercial auto insurance.

General Commercial Auto Insurance includes six types of coverage

1. Full coverage: This type of coverage is activated when a vehicle is vandalized or damaged by something other than another vehicle, such as an animal or a fallen tree.
2. Collision insurance: This type of insurance covers damage to a vehicle that occurs when the vehicle is struck by another vehicle or object or the vehicle rolls over. This type of insurance is very necessary for vehicles with loans or leases.
3. Uninsured or Underinsured Driver: This type of insurance covers damages and medical expenses incurred in an accident caused by an uninsured or underinsured motorist.
4. Liability insurance: Generally, most states require this type of insurance. It is activated when you cause an accident. It protects you not only from harm, but also provides you with a legal defense in the event that the other party files a lawsuit against you. “Property damage liability” covers damage to the other party’s car or property, while “bodily injury liability” covers injury or death caused by the car accident.
5. Medical payment coverage: This type of insurance covers medical expenses incurred by anyone in your vehicle due to a car accident, regardless of who is at fault for the accident.
6. Protection against personal injury: This type of insurance covers injury-related costs incurred by you or your employees when you are involved in an accident, regardless of who is at fault for the accident.

Specialized Commercial Automobile Insurance is intended for companies that require the use of specialized vehicles to carry out their daily activities. Some common types of custom coverage that are designed to protect specialty vehicles include catering truck coverage, landscaping vehicle coverage, and trade-related vehicle coverage.

In conclusion, no matter what type of business you run or what type of motor vehicle you use, a commercial insurance policy can be tailored to meet your specific needs.