COMMERCIAL AUTO Insurance – Customer-friendly
If your business owns a vehicle that is used for commercial purposes, you may be required to purchase a commercial auto insurance policy. This is a special type of coverage that is designed for business use vehicles, and many states have specific coverage rules and guidelines in place depending on how the vehicle is used. For example, a vehicle that is used to transport passengers may have significantly higher liability coverage requirements than one that is not used to transport passengers. It is important that you review and understand your state’s requirements for commercial auto insurance as a first step before you purchase your policy to ensure that you comply with the law.
Then, inquire with your auto lender about coverage requirements that they have for you. Most automotive lenders will require you to maintain a policy that has some replacement or repair component to it. In the event that your vehicle is damaged, your auto lender wants to ensure that you have the financial means to replace or repair it while you have the loan secured by it.
A commercial vehicle policy is designed to protect you against financial loss in the event you cause damage to another party and are responsible for their damages. It also may protect you from loss related to theft, natural weather events and more related to damage to your own vehicle. Some types of coverage may protect you against personal property loss and personal injury loss as well. Some will pay for you to rent a vehicle while your own vehicle is being repaired. You can customize a policy to meet your needs.
The coverage options are numerous, and there are also credits and discounts available to select policy holders. For example, if you have not filed a claim within a year or two, some insurance companies will give you a discount on your premium. Your insurance company can help you to learn more about the credits and discounts that may be used to lower your premium. Keep in mind that adjusting your deductible higher is another way to lower your premium on your commercial vehicle policy.