Commercial Auto Insurance

Commercial Auto Insurance Policies

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About Commercial Auto Insurance 

Commercial auto insurance is specifically designed for vehicles that are utilized in the operation of a business. It provides protection to the policyholder from liability issues and from expensive repair bills should a commercial vehicle sustain damage from an accident or some other covered event. 

Who is for?

Commercial auto insurance is meant for all types of businesses that use vehicles in any way that is related to the operation of the business. Not only is it required by law, it is also mandated to ensure that the business owner can avoid the many potential instances of legal, medical, or repair expenses. Businesses both large and small can make great use of this type of coverage. Keep in mind that the Gross Vehicle Weight Rating (GVWR) is an important determination for establishing whether a vehicle is deemed as “commercial” in status. Only those who have a commercial driver's license can be officially included in a commercial vehicle policy. Therefore, those in the business structure who do not have a valid license will not likely have the permission to operate their own insured vehicles.

How does it work?

The commercial auto policy is quite similar to a personal car insurance policy. As in normal car insurance, the company seeking coverage will first need to determine what coverage types they need and the subsequent levels of the coverage too. Once this is accomplished, the business then can buy the policy of choice. The insurance company will then provide the company owner a contract to sign to then initiate the coverage. Coverage starts only when the contract is signed. The policyholder will then need to simply pay the premiums consistently and on time until the time comes when he or she must file a claim. This is accomplished in accordance with the procedures of the insurance company and as outlined in the policy details. The insurance company will then get in touch with a company representative to assist in making the process smooth and to successfully receive whatever compensation is due.

Types of coverage:

Liability insurance is the type of coverage that protects commercial drivers (and passengers) who are involved in an accident with another automobile or pedestrian. This kind of plan provides compensation for medical costs incurred from treating injuries resulting from accidents. Collision insurance is what is activated to help in the repair of the chassis, body and mechanical components of commercial cars trucks or vans involved in accidents. Comprehensive coverage is what provides compensation for damage as a consequence from extreme weather, fire, theft, vandalism and other events not related to accidents with other motor vehicles.

The Benefits

Businesses that choose the more comprehensive forms of good commercial auto insurance will likely reap many more inherent benefits. They will enjoy liability coverage should someone initiate legal action related to a company’s vehicles. The firm can also receive ample compensation for any vehicle repair expenses. Keep in mind that many providers prefer to pay directly the mechanic shop for any needed covered repair work.

Commercial auto insurance is engineered very specifically for vehicles used in business and, as such, provides unequalled protection from liability. It also provides a company protection from costly repair bills after a business vehicle is damaged. It may be wise for business owners to take advantage of the best policy that is available given budget considerations.


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