What Is Commercial Auto Insurance?
No matter how conscientious your employees are, things can happen on the roadway that are beyond their control. To avoid exorbitant out-of-pocket expenses, it may be time to find out what commercial auto insurance has to offer. Commercial auto insurance covers everything a personal auto insurance policy does. Additionally, it may have higher limits for vehicles you rent or own and use for business purposes.
At a minimum, ensure that bodily injury and property damage are written into your policy. Bodily injury insurance pays for medical expenses incurred by another driver or passenger in an accident you or your employee cause, while property damage coverage repairs for a vehicle hit by you or your employee driving a covered vehicle.
Additional Coverage Options
There are several other policies that enhance coverage on the vehicles in your business fleet. Whether each one applies depends on the nature of your business. However, here are some of the most common for your consideration:
- Uninsured/Underinsured Motorist: UIM insurance takes care of damage to your vehicle when you are hit by an uninsured or underinsured motorist. These drivers may not have enough insurance to reimburse you for your losses — they may not have any insurance at all.
- PIP With Medical Insurance: PIP covers major medical expenses for passengers hurt in an accident.
- Emergency Roadside Assistance: If your drivers cross state lines or travel far from your business base, this coverage may be a necessity. It helps you avoid paying expenses out of pocket when a vehicle breaks down. Most emergency roadside assistance policies include battery replacements, tire changes and a slew of covered repairs, as well as towing.
- Personal Effects Insurance: This pays for your personal belongings if they are lost, stolen or damaged.
Now that you know a little more about commercial auto insurance, you can work with an agent to pick the best coverage for your business.