Things To Know About Commercial Auto Insurance

Commercial auto insurance is designed to protect businesses and their vehicles from financial losses associated with accidents, theft, and other risks. This type of insurance is essential for companies that rely on vehicles for daily operations, such as delivery services, construction firms, or transport companies. Carver Insurance Services, Inc. provides commercial auto insurance in Temecula, CA, Murrietta, CA, Wildomar, CA, Winchester, CA, Menefee, CA, Lake Elsinore, CA and surrounding areas.

These are key aspects to know about commercial auto insurance:

Coverage Types: Commercial auto insurance generally includes liability coverage (bodily injury and property damage), physical damage coverage (collision and comprehensive), medical payments or personal injury protection (PIP), and uninsured/underinsured motorist coverage. This ensures protection not only for the business but also for third parties and employees.
Vehicle Types Covered: Commercial policies typically cover a wide range of vehicles, including cars, trucks, vans, and specialty vehicles used in various industries. It also includes fleet insurance, which covers multiple vehicles under one policy.
Liability Limits: The coverage limits for commercial auto insurance are usually higher than personal auto insurance. Businesses face greater risks, especially if large vehicles are involved, which can cause more severe damages and lead to larger lawsuits.
Driver Eligibility: Commercial policies cover any employee authorized to drive the vehicle for business purposes, not just the business owner. It’s crucial for businesses to ensure that employees driving company vehicles have clean driving records to minimize risk and insurance costs.
Cost Factors: The cost of commercial auto insurance depends on factors such as the number and type of vehicles insured, driving history, the level of coverage, and the business location. Companies with larger fleets and more risk exposure will typically pay higher premiums.
Legal Requirements: Most states mandate that businesses carry a minimum level of commercial auto insurance, particularly liability coverage. This ensures that businesses are protected against the financial consequences of accidents involving their vehicles.