Commercial Auto Insurance – Read The Definition Of Commercial Auto Insurance And More

As having personal auto insurance is important, it is also very important that company vehicles be insured with commercial auto insurance. If your company car suddenly experiences an accident, then commercial insurance would protect you from financial losses. Your personal auto insurance is different from your commercial auto insurance so you have to purchase both because vehicles involved in an accident while engaged in business are not covered by your personal policy. To make matters worse, you could be charged with misrepresentation if attempt to place your commercial vehicle under your personal auto policy and you wouldn’t want to be charged criminal offenses for that.

Commercial auto insurance has a range of options, just like personal auto insurance. The same policies are available for the business car as your personal car — liability, collision and comprehensive, medical payments (known as personal injury protection in some states) and coverage for uninsured motorists.

Most vehicles used for commercial purposes are also used for personal purposes. For vehicles owned by the business, the name of the business should appear on the policy as the “principal insured” rather than the name of the individual so as to avoid confusion in the event that a claim is filed against you or when you need to file a claim.

Researching the various types of coverage will aid you in making the best choice. Discussing your needs with an insurance agent can help guide you in your decision-making process. Make inquiries from the insurance agent regarding business-use autos, pickups, vans, and trucks. Include in your inquiries about “non-owned” vehicles if your employees use their own vehicles to run errands; and rented vehicles used by employees in their travels. A good insurance agent will ask you for many of these details including those how you use vehicles in your business, who will be driving them, and if your employees use their own cars for your business.

Personal auto policy is different from a business auto policy in several technical aspects; however, the major coverage remains the same as specified earlier. Let the insurance agent explain to you all the differences, options and possibilities on the type of commercial insurance policy you should choose that comply with your business needs.

Factors to consider when purchasing a commercial automobile insurance include high quality, affordability, and a reliable protection for individuals, properties, partnerships and corporations.

Choose a provider that has trustworthy local independent agents or brokers who are still active in their community. Ask recommendations from reliable sources for local independent agents that have good relationships with their customers and those that provide best services that meet the customer’s needs. When choosing a Commercial Automobile policy you want to be sure it is reasonably priced and meets the needs of your company adequately as well as being competitively priced when compared to similar policies from other companies.

Check the auto insurance provider’s track record on proper handling of claims, underwriting and unique service needs of these business classifications and check if it is financially strong and have high insurance ratings. Rating must also be reliable.