If your business depends on vehicles for its daily operations, then you already know you need to have commercial auto insurance coverage. Whether you own a construction company or operate a food truck, your commercial auto policy can be a lifesaver in case of an accident with its collision and liability coverage. But as your business grows, so can your commercial car premiums! Read our how-to guide and learn how you can score significant savings on your policy.
What Is Commercial Auto Insurance?
If your business owns vehicles, you need commercial auto insurance. Commercial auto insurance protects your company vehicles with collision and liability coverage. This specialized type of auto insurance caters to businesses, and covers vehicles such as construction equipment, taxis, delivery vehicles, company cars and food trucks.
Do I Need Commercial Auto Insurance?
In general, if your company owns vehicles that are involved in the operation of your business, you will need a commercial car policy. But if you use your personal vehicle to perform business tasks outside of commuting, you may need commercial auto coverage as well.
Who Is An Insured Under a Commercial Auto Policy?
Under most commercial auto policies, you have many different categories of people who are considered insured. These include yourself, employees, family, permissive drivers, and omnibus insured. Permissive drivers are anyone you give permission to drive a commercial vehicle. An omnibus insured is anyone who could be held legally responsible for your or another user’s driving conduct.
Does Commercial Auto Insurance Cover Personal Use?
If a vehicle owned by the company is driven for personal use, then it may still be covered under your commercial auto policy. However, if you use a personal vehicle for commercial purposes and personal use, it may not be covered. Be sure to ask your insurance advisor and check your policy.
Is Commercial Auto Insurance Expensive?
How much you pay for commercial car insurance depends on many factors, including where your business is located, how many vehicles your company owns, and how much coverage you think you will need. For each $1 million of coverage, most businesses can expect to pay $900 to $1200 in annual premiums.
Are Trailers Covered Under Commercial Auto Insurance?
Depending on the size of your trailer, your commercial car policy will extend from your vehicle to the trailer it tows. If your trailer weighs less than 2,000 pounds, your vehicle’s policy will cover it. If it weighs more than 2,000 pounds, you will need to include it in your commercial car insurance policy.
How to Lower Your Commercial Auto Insurance: Five Easy Steps
- Install GPS tracking devices to your commercial vehicles.
- Encourage your employees to practice driving safely, and consider adding a phone number on the vehicle for the public to report dangerous driving by your employees.
- Increase your commercial auto policy deductible.
- Install a monitoring service such as SAMBA to regularly check for any tickets or moving violations involving your vehicles.
- Don’t purchase the most expensive vehicle; the more expensive your vehicle, the more expensive the insurance to cover it.
Commercial auto insurance is critical if your company relies on its commercial vehicles to run your business. However, there’s no reason you can’t save money on your insurance premiums by implementing a few safety measures and keeping in mind the cost of the vehicles you purchase. But one of the best ways to save money is by working with a knowledgable commercial insurance advisor right a the beginning.
The insurance advisors at JAISIN can guide you to the best commercial car insurance policy for your needs, or help you save money on your current policy. Their commercial insurance advisors work with business big, medium, and small, and have the experience to be sure your company has all the coverage it needs.