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Commercial Car Insurance

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If you have a company car or a fleet of vans or trucks, then you will have to get them insured as you would with any other vehicle. However, standard car insurance won’t cut it when it comes to cars used for business. For that reason, you’ll have to get a commercial car insurance policy for your vehicle or vehicles. This will cover damage and injuries caused by one of your drivers while they are on the clock. These cars must also be registered to your business and not an individual unless it’s yourself as the business owner.

Personal and Commercial Car Insurance

Drivers are typically required to carry car insurance in the majority of the United States. Even where it isn’t required, drivers are still obliged to cover any injuries and damage they cause in a car accident. This is also the case for cars owned by a business and being used on the clock. This type of vehicle(s) comes with a new set of car insurance stipulations. That’s where commercial car insurance comes into play. Just as standard car insurance is required for personal vehicles, commercial insurance is required for those used for businesses. Commercial car insurance protects not only your work vehicle(s) but also your employees.

What Commercial Car Insurance Covers

For basic protection, businesses insure their car with commercial auto insurance to cover medical treatment and damage caused while in a company vehicle. This is basic liability protection, and it’s required for nearly every driver in the United States. Of course, there are policy add-ons for more broad protection while driving on the work clock. If you’re familiar with personal car insurance, then you may have already heard about the following coverages:

  • Collision coverage – This covers damage to your own vehicles in an accident one of your drivers caused, while your liability insurance covers the damage and injuries they caused.
  • Comphrensive coverage – This covers damage to your work vehicles when they are not in use and is subject to criminal and fire damage.
  • Uninsured motorist coverage – If you or your employees are hit by a driver with no insurance of their own, this coverage will help cover the damages they caused since they can’t on their own.
  • Worker’s compensation – This commercial insurance will cover your employees while they are working. Since they are driving a company car or truck, they are on the clock. So, worker’s compensation should cover medical treatment for any injuries they recieve in an accident.

Commercial Car Insurance and Vehicles You Don’t Own

If you are a business that leases or rents your vehicles rather than owning them, then there is specialized commercial car insurance for you. Hired and non-owned insurance provide general liability coverage for vehicles of this nature. This can also include vehicles that are used for work but are owned by an employee.

Who Commercial Car Insurance is For

Some businesses rely on their fleet of cars or trucks for them to run successfully. While there is no limit to what businesses can get commercial car insurance, the most common that do are the following:

  • Vehicle has the company in its title as the owner
  • Need regular transport to and from worksites
  • Carry equipment needed to complete a job
  • Transporting clients
  • Delivery and moving services

Cost of Commercial Car Insurance

It’s a general inference and fact that commercial car insurance will cost more than a personal policy. More vehicles are being covered, and some work they do may be considered risky to insure. Here are some other examples of what can impact the cost of a commercial car insurance policy:

  • How many vehicles are being insured
  • Vehicle(s) type
  • Vehicle(s) value
  • Risk-based on usage
  • Past insurance claims
  • Driving records of employees
  • Deductible amount

It helps to shop for commercial car insurance the same way you shop for personal car insurance. Gather as many quotes from as many insurers as you can to see who has the market cornered on the best value for commercial car insurance.

About the author


Anna Richter