If you are considering auto insurance coverage for your business, it is crucial to understand the basic elements of a commercial auto policy. The more you gain knowledge, the more you’ll be capable of making an informed decision.
It would be best to have commercial auto insurance to cover your cars, buses, or vans used for conducting your business. On the contrary, you can protect your houses too. In that case, homeowners insurance in Atlanta would be the best choice. It all depends on you what you prefer. Both are significant, but you need to look into the services and affordability chances.
This guide will learn about commercial auto insurance, its coverages, options, and add-ons.
Ready, here we go!
What is precisely commercial auto insurance?
A commercial vehicle insurance policy covers physical damage and liability coverages for situations, amounts, and usage. A personal auto insurance policy may not cover these. This type of business insurance covers many commercial vehicles, from automobiles used for business purposes, including company cars, to a large variety of commercial trucks and vehicles. There are mainly three essential parts of every commercial auto insurance policy:
- Physical damage insurance: It comprises collision and comprehensive coverage
- Liability insurance: Comprises bodily injury, property damage, uninsured motorist and underinsured motorist coverage
- Other coverage: Comprises medical payments, towing and labor, rental reimbursement, and auto loan or lease gap coverage
Let us learn these coverages in brief!
- Bodily injury liability coverage – The coverage pays for bodily injury or death resulting from an accident for which you are at fault. In most cases, it may provide you with a legal defense.
- Property damage liability coverage – protects you if your vehicle accidentally damages another person's property. It may even provide you with a legal defense in most cases.
- Combined single limit (CSL) – Liability policies offer separate limits for bodily injury claims for property damage. A combined single limits policy may have the same coverage dollar amount per covered occurrence. Whether property damage or bodily injury, it works no matter whether one person or many.
- Medical payments or personal injury coverage – This may usually pay for the driver's and passengers' medical expenses in your vehicle. It's applicable when incurred due to a covered accident disregarding fault.
- Comprehensive physical damage coverage – The coverage will pay for your vehicle damage from theft, flood, fire, vandalism, and other covered perils.
- Collision coverage – It pays for damage to your vehicle when your vehicle hits or is hit by another object.
Options and add-ons
Beyond these essential components, you can also customize your commercial auto insurance policy with the following coverages. These are generally called endorsements. Some of them include:
Roadside assistance
It protects you when problems arise that you cannot typically handle under your commercial auto policy. This may include being locked out of your car, flat tires, dead batteries, etc.
Auto loan or lease coverage
It covers the difference between unpaid amount or lease. Plus, it also includes the actual value of your vehicle if it is a total loss after an accident.
Rental reimbursement
Pays for a rental car up to your policy limits, so you have transportation after an accident.
New vehicle replacement cost coverage
It will help you replace your vehicle under complete loss with a comparable or new vehicle.
This is it! I hope this guide will help you understand the basic terms so that you don’t face any difficulty while getting a policy for yourself. Good luck!
