The Basics of Commercial Auto Insurance

Commercial auto insurance is critical for companies that rely on vehicles to conduct business. Whether you manage a fleet of delivery trucks, service vans or company cars, having the right insurance coverage helps ensure protection against financial losses due to accidents, property damage or injuries, depending on the coverages you choose.

Commercial auto insurance is customizable, so consult your agent to learn more about tailoring your coverage to meet your organization’s needs.

What Is Commercial Auto Insurance?

Commercial auto insurance is designed to help cover vehicles used for business purposes. It can help cover many vehicle types, including delivery trucks, service vans and company cars.

Your agent may recommend adding the following core coverages to your company’s commercial auto insurance:

• Liability coverage is the foundation of any commercial auto policy. It may help cover bodily injury and property damage liability if your vehicle is involved in an accident. If you’re at fault, liability coverage may help pay for medical expenses, legal fees and property repairs.
• Physical damage coverage may help pay for repairs to your company vehicle after a collision with another vehicle or object. It may also help cover damage from non-collision incidents, such as theft, vandalism, fire or natural disasters.
• Uninsured/underinsured motorist coverage may help protect you if you’re involved in an accident with a driver without insurance or insufficient coverage.

Factors Affecting Premiums

Several factors influence commercial auto insurance premiums, including the following:

• Type of vehicle—The make, model and year of your vehicle impact premiums.
• Driving record—A clean driving history leads to lower rates.
• Coverage limits—Higher coverage limits result in higher premiums.
• Deductibles—Choosing a higher deductible may help lower your premium.
• Business location—Rates vary based on the location of your business.

Commercial Auto Insurance Requirements

In most states, the law mandates specific minimum insurance requirements for commercial vehicles. If your company uses semi-trucks or heavy-duty machinery, you may also be subject to federal laws about liability insurance coverage.

Your agent can help you secure commercial auto insurance to comply with applicable federal and state regulations.

Contact Us

As a business owner, securing appropriate commercial auto insurance is crucial. Contact Bargain Insurance Connection in Kansas City, Missouri, to compare commercial auto insurance quotes. Our agents can help business owners in Missouri, Kansas and Illinois secure appropriate coverage at favorable rates.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.