Every year, different types of companies are created throughout the country. And nearly 99% of business owners use automobile transportation for their business needs. Such cars need special insurance coverage like business cars, since your individual auto insurance does not provide coverage through the business use of your vehicle (car, truck, or trailer).
When a car is used for business activities, you need a private insurance policy, called commercial business auto insurance. If you are hauling a commercial trailer with a private car, you may also need to obtain a commercial commercial policy. If you tow something that doesn’t belong to your business, you can call for rented or non-owned car coverage. These conditions are different in each state, so check with your state insurance department for a complete list of principles.
Commercial auto insurance policies primarily include similar fixed coverages and offer similar potential coverage as general auto insurance policy. The main and most common fixed and optional commercial auto insurance coverages, which may be included in your commercial auto insurance policy, are:
Accident Profit Coverage: Offered by most insurance companies. It typically provides reimbursement for medical and therapeutic treatment, funeral costs, loss of earnings due to disability, and death.
Intermediary Liability Coverage – Provides coverage if, while driving your business automobile, the driver is officially detained for injuring another person or damaging another person’s property. If your driver is arrested for more than the coverage, then your company could be liable for it.
Unidentified, Underinsured and Uninsured Motorist Coverage: This is a general type of coverage. Although the name may differ in different states and at different companies, the fundamental principles are the same. This coverage provides compensation if the driver of your commercial automobile is injured or killed by an uninsured or underinsured driver, or by an unidentified automobile.
Direct Reimbursement – Property Damage: This coverage provides reimbursement for damage to your automobile and any possessions in it, if the driver of your commercial automobile is not at fault in an accident.
Family Protection Coverage – provides coverage for the driver of the car from the actions of an at-fault, uninsured or underinsured person driving the vehicle. If possible, family protection guarantees coverage up to the limits of your commercial auto insurance policy, plus the other person’s coverage points.
Commercial business auto insurance can be expensive, but cheap insurance is also available if you know a few tips for getting it. The best way to find it is to investigate. Compare quotes from various companies and find the one that is most economical for you and your finances.