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Home » Understanding Commercial Auto Insurance
March 27, 2024
Bargain Insurance Connection

Understanding Commercial Auto Insurance

Motor vehicles are an essential part of many business’s daily operations. Delivering goods, transporting passengers and hauling property may require trucks, cars and vans, and while these operations may be common, they are also inherently risky. Even the most diligent organizations employing highly experienced drivers must account for potential accidents on the road and other incidents involving their vehicles. With this in mind, understanding, acquiring and maintaining appropriate commercial auto insurance may be imperative.

What Is Commercial Auto Insurance? cars parked on parking lot during daytime

As its name suggests, commercial auto insurance is a type of coverage focused on providing financial protection for incidents involving a business’s motor vehicles. These policies are legally required if your company owns automobiles for commercial purposes and may consist of several familiar components and features compared with personal auto insurance. However, additional coverage options may also be available.

How Does Commercial Auto Insurance Work?

Like many types of insurance, your business’s commercial auto policy establishes a legal agreement between you and your insurance company. Coverage can typically be customized to suit your company’s unique circumstances, including its needs, preferences, budget and risk tolerance. After finalizing these details and as long as you keep up with your premiums, you can file a claim following incidents involving insured vehicles. If approved, your commercial auto policy provider can issue a payout up to your policy’s limits and minus its deductible.

What Does Commercial Auto Insurance Cover?

Commercial auto policies may consist of many coverages and components, including the following:

  • Third-party liability coverage may provide financial assistance if your business is at fault for an accident that causes another party’s injuries or property damage.
  • Collision coverage can help pay for repairs if your company’s vehicles are damaged in a crash.
  • Comprehensive coverage may provide aid for vehicular damage arising from no collisions, such as fires, crime and weather.
  • Medical payments coverage (MedPay) can help drivers and passengers manage health care costs if injured in an accident.
  • Personal injury protection (PIP) provides coverage similar to MedPay but can also help recoup additional financial losses arising from an accident, such as lost wages.
  • Uninsured/underinsured motorist coverage may help your business recoup its losses even if another party is at fault while lacking adequate insurance.
  • Hired and non-owned auto coverage may provide financial protection if your employees are at fault for an accident while using a personal, rented or leased vehicle for business purposes.

Get the Right Coverage

Having served businesses, families and individuals in the Kansas City, MO, area for over two decades, the dedicated team at Bargain Insurance Connection can help your company secure appropriate commercial auto coverage. Contact us today to get started.


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. 

Categories: Commercial Auto

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