Last Updated on May 20, 2021 by MoneyVisual
An individual’s life and property are surrounded by the risk of death, disability, or destruction. These risks may result in financial losses. Insurance is a prudent way to transfer such risks to an insurance company. It provides you and your family proper coverage and financial support against all risks linked to your life, health, and property.
If talking about commercial auto insurance, then today it is essential. It is a type of car insurance meant for cars used for business purposes, not personal use. It keeps you and your business protected if your commercial vehicle gets damaged in a road-mishap. The best commercial auto insurance shields you financially from physical damage and takes care of your liabilities to third-party.
Commercial Car Insurance can Cover:
- Delivery trucks or vans
- Work vans
- Dump trucks
- Food trucks
- Service utility trucks
- Box trucks
- Trailers, etc
Commercial Auto Insurance Coverage:
The best commercial car insurance can offer both liability coverage and collision coverage for business vehicles and their drivers when it comes to coverage.
- Liability Coverage: It is a part of commercial car property that only covers injuries or damages to third parties and their property. Not to the drivers or the driver company. But, it helps cover medical expenses for those involved in the accident. It consists of four types of coverage:
- Personal Injury Coverage: This coverage pays medical expenses for the driver and passengers if they are in an accident or regardless of fault.
- Collision Coverage: It pays to fix damage to your car from a collision with another vehicle regardless of who is at fault.
- Comprehensive Coverage: Comprehensive commercial coverage covers damages to the insured vehicles due to natural calamities such as fire, lightning, explosion, and flood.
- Un/Under-Insured Motorist coverage: When an accident is caused by another driver and does not have insurance to pay for it, this policy covers you, your passengers, and insured members for bodily injuries, property damage, or death.
- Non-Owned Vehicle Coverage: Covers you when your employees use their cars to conduct business for you
- Hired Vehicle Coverage: Covers you when you rent cars or vans for employees or clients
- Rental Reimbursement with Downtime: Covers your costs to rent a temporary replacement if your vehicle needs repairs
- Trailer Interchange Coverage: It covers trailers your vehicles use that are owned by other companies.
Factors That Determine Commercial Auto Insurance Premium and its average cost:
The Average cost of the best commercial auto insurance is $142 per month or $1,704 per year. But it may vary because it depends upon a few factors. It includes:
- Vehicle type, model, and use
- Type of fuel (petrol, gases, or liquid)
- Age of the vehicle
- Credit score
- Mileage and journey estimate
Reasons for Buying Commercial Vehicle Insurance Policy:
- Comprehensive and Customizable: Commercial auto insurance plans offer coverage for property damage, liability, medical payments, and even cargo coverage all through the same policy.
- No Claims Bonus Reduces Yearly Premium Charge: Usually, it carries for five years, but when you buy a commercial vehicle insurance policy, companies offer further discounts for six or more years. It helps you save up on your premiums.
- Ease Your Burden During Third Party Involvement:
- Third-party auto insurance plans extend financial coverage in the event of accidents causing significant damage to another vehicle or person. There is no upper limit on monetary compensation extended in physical damage or death of a third party victim.
- Cover Your Equipment Too: Generally, commercial auto insurance covers any equipment that’s carried in your work vehicle. It means, if you get an accident and destroy your inventory, you may be able to add that to your insurance coverage. Not only has this, but it also covered things like theft and vandalism. And it can be a significant advantage for those businesses who work in the high-incident area.
- Qualify for Better Lease Terms: Many businesses use leased vehicles to meet their business needs. And they traditionally struggle with control costs such as cleaning and maintenance fees. Most companies hire professional drivers and give them proper training to reduce wear and tear risks. It is a good thing, but it also increases your leasing payments. In that case, you can customize all these things in your commercial vehicle insurance and provide special protection to your leased vehicle. Also, it automatically reduces your liabilities.
How to Buy the Best Commercial Auto Insurance?
When it comes to buying commercial auto insurance, you might think it can be overwhelming. You’re mistaken because many insurance provider companies are available who offer you the best insurance plan. The best part is that they offer you online as well as offline facilities to buy insurance.
- Offline: It means you can directly visit an insurance company and know their advisers’ deals and buy a coverage plan.
- Online: This is a straightforward method. Yes, in which you do not need to meet any insurance service provider. You can go directly through their site, analyze coverage or liabilities and buy the best commercial auto insurance in just a few clicks.
But, there is a thing that you should consider is “beware of fraudsters.” As mentioned above, many companies offer you the best services but choosing the best one is in your hands.
Let’s consider some tips to choose the best commercial auto insurance company:
- Survey and Analyze: Today, with the help of the internet, you can quickly analyze everything. So, survey the multiple company websites and get an estimate of their services. After this, make a list of top companies known for providing you with the best services or coverage you are looking for.
- Consider Reviews: Once you created a list, now again looking for different ways to know about them. Reviews are the easiest way to know about their company or services. Consider and finalize the best insurance provider company.
- Understand the Financial Strength: After paying installments, no one wants to hear from the insurance company that they cannot pay your claim. So, it is good to review their financial strength before signing any contract.
- Always Switch to Dealer Direct: Last but not least. It is always good to buy commercial auto insurance directly from the dealer. There are two reasons. First, you will get the correct information about your plan, and you will also find attractive dealers. Apart from this, there is no other middle person to whom you will have to pay commission.
I hope that after reading this, you will know many things about commercial insurance. If you are ready to buy, Velox Insurance is the perfect place. We provide you with the best affordable coverage for your vehicle. For more queries, you can directly contact us. We will be happy to assist you!