Commercial Auto Insurance: A Comprehensive Guide

Whether you are driving a single vehicle for your business or managing a fleet with several vehicles, it is essential to ensure their safety on the road. Accidents do happen and they could result in significant losses for your business without commercial auto insurance. We will explore our most frequently asked questions regarding commercial auto insurance below.


What is Commercial Auto Insurance?

Commercial auto insurance is a type of insurance specifically designed to cover vehicles used for business purposes. It is like personal auto insurance, but it is tailored to meet the unique needs of commercial vehicles and their drivers. The coverage provided by commercial auto insurance could protect your business from financial losses that could result from accidents, theft, or damage.

What does Commercial Auto Insurance cover?

Commercial auto insurance is designed to provide comprehensive coverage for your business's vehicles. This coverage includes:

  • Liability coverage: Commercial auto liability coverage provides protection for your business against legal liabilities that could arise from any damage you, your driver or vehicle may cause while on the road. This coverage could help cover legal expenses, medical bills, and property damage resulting from an accident as well.
  • Collision coverage: Commercial auto collision coverage provides protection for your vehicle in the event of an accident with another vehicle or an object. It could help pay for repair or replacement costs for your vehicle if it were damaged in an accident.
  • Comprehensive coverage: Comprehensive coverage provides protection for your commercial vehicle against a range of unforeseen events, such as theft, vandalism, natural disasters, or animal collisions.
  • Uninsured/underinsured motorist coverage: This coverage protects you, your drivers, and your business by covering medical expenses and other damages incurred in the event of an accident with another driver who has no insurance or lack of insurance coverage.
  • Medical payments coverage: This coverage provides protection for you and your drivers in the event of an accident by covering your medical bills, regardless of who is at fault.

What types of vehicles are covered by Commercial Auto Insurance?

Commercial auto insurance covers a wide range of vehicles used for business purposes. These include:

  1. Cars and trucks that are used for business purposes, such as delivering goods or services.
  2. Specialty vehicles: includes vehicles like food trucks, shuttle buses, and tow trucks.
  3. Commercial trailers: includes flatbeds or refrigerated trailers
  4. Large commercial vehicles: including semi-trucks and tractor-trailers.

Is there a minimum amount of coverage required for Commercial Auto Insurance?

The amount of commercial auto insurance needed depends on several factors, including the type of vehicle, its usage, and the state where it is registered. Most states require a minimum amount of liability coverage for commercial vehicles. This means you should think about purchasing additional coverage to ensure your business is adequately protected.

Find the right commercial auto insurance for your needs.