Cheap Commercial Auto Insurance

Cheap Commercial Auto Insurance is ideal for people who use their vehicles for business activities. There are several insurance providers that offer affordable commercial auto insurance, but you can get a better deal if you compare rates before buying. In this article, we discuss the basics of getting cheap commercial vehicle insurance policies.

What Is Commercial Auto Insurance?

What Is the Coverage Provided in Commercial Auto Insurance?

Who Should Get a Commercial Auto Insurance?

How Does Commercial Auto Insurance Work?

• Coverage: This determines the damages, incident, and expenses the policy will cover.
• Policy limit: Defines the maximum amount of money the insurance company will pay you if you file a claim on the policy.
• Deductible: This defines the amount your business will pay out-of-pocket before the insurance company provides coverage.
• Monthly premium: This is the monthly payment for holding the policy.

As a business owner looking to buy commercial auto insurance, choose a policy that provides sufficient protection and policy limits with affordable deductibles and low monthly premiums. Like personal insurance policies, when you buy a commercial auto insurance policy, you’re expected to pay monthly premiums. The insurance company is expected to cover payments for any repairs, damages, medical treatments, or legal expenses resulting from an accident involving one of your vehicles.

If your commercial vehicle is involved in an accident or collision that is covered under the policy, you can report your losses by filing a claim with the insurance company. It is important to file your claim within a few days of the accident to avoid having your claim denied. In case the damage from a covered accident exceeds the policy’s deductible, the insurance company will still have to pay for damages up to the limit of your policy.

What Protocols Are Followed by Insurers When Settling a Claim?

According to Construction Coverage, here are some practices you can expect from insurance providers while settling a claim:

• Some insurance providers require commercial vehicle insurance policyholders to use certified auto repair shops for their assessments and repair of damages. The insurance company will pay the shop directly, and you will pay the deductible for the work done. In most cases, these arrangements can save you time and money.
• Insurance companies may also require you to get quotes from multiple auto repair shops if those shops are not part of their certified network.
• Insurance companies may also send their agents to assess the damages and repair costs before approving the estimate from a repair shop.
• Sometimes, insurance companies may wait until you’ve paid your premium before reimbursing you for the cost of repairs. This is not a good arrangement because it can disrupt your business operations.

Who Needs Commercial Auto Insurance?

A vehicle that falls under any of the following categories will likely need commercial auto insurance, according to Direct Auto:

• A vehicle owned, leased, or rented by a business
• An employee-operated vehicle
• A vehicle used to perform business operations by an entity that is not the owner

If your employees use personal vehicles for occasional business activities, a personal auto insurance policy will do. However, if they use the vehicle frequently for business activities, you may need to buy a commercial auto insurance policy for them. This is important because the insurance company may not pay for claims if the vehicle had an accident while the employee was using it to complete an official task.

What if the Business Transports Products or People Across State Lines?

If your business moves products or people across state lines, your company is required to meet the Federal Motor Carrier Insurance requirements. These requirements are enforced by the Federal Motor Carrier Safety Administration.

What Is Covered Under Commercial Auto Insurance?

Commercial auto insurance covers a wide range of personal and company vehicles. These policies can cover:

• Sedans
• Pickups and SUVs
• Vans
• Trucks
• Delivery vans
• Cranes, haulers, and cement mixers
• Flatbeds
• Tractor trailers

What Coverage Is Included in Commercial Auto Insurance?

Here are the coverages included in commercial auto insurance:

Bodily Injury Liability Coverage

If you cause a car accident that injures another person, bodily injury liability coverage helps pay for their medical expenses and lost income as a result of their injuries. This coverage may also help pay for your legal fees if you’re taken to court over an accident.

Property Damage Liability Coverage

Property damage liability coverage is required by law in most states. It typically helps cover the cost of repairs if you are at fault for a car accident that damages another vehicle or property, such as a fence or building front. Property damage liability coverage usually does not cover damage to your own vehicle.

Physical damage protection

Sources:

https://www.insureon.com/small-business-insurance/commercial-auto

https://opportunitynotify.com/cheap-commercial-auto-insurance/

https://constructioncoverage.com/commercial-auto-insurance

https://www.directauto.com/our-products/commercial-auto-insurance