Why Businesses Need Commercial Auto Insurance

In California, businesses are required to carry commercial auto insurance. Without it, they run the risk of bankruptcy or jail time if they are involved in an accident. Many carriers even offer telematics monitoring to lower premiums. If you’re unsure of your company’s coverage, ask an experienced insurance professional for a quote. ma auto insurance quotes

While your personal auto insurance coverage might be sufficient for occasional business use, you should get commercial auto insurance if you use your vehicle regularly for work purposes. A personal auto policy won’t cover your business vehicle if you need to transport heavy items or log high mileage. A commercial auto insurance policy will pay for the expenses of repairing or replacing your company vehicle if you have an accident.

Insurer diversity benefits both insurers and diverse businesses. It broadens the industry’s pool of potential suppliers and increases competition for bids. This, in turn, helps insurers gain an edge in a competitive market where demographics are rapidly changing. This can help you to obtain the best rates for your business.

A broker-agent can compare rates and policies and find the best fit for your business. He or she will meet with you to discuss your business and the exposures that you face. He or she will ask you to provide a copy of your existing policy so that they can compare limits, exposure bases, and endorsements to find gaps or overlaps.

Allstate is the third-largest auto insurer in the United States and has a great reputation with the Better Business Bureau. It offers customizable coverage and a streamlined claims process. However, it is a little more expensive than other companies in some cases. The company also does not offer truck-specific coverage.

Purchasing commercial auto insurance will protect your business against lawsuits and liability. If you get into an accident and hurt a person, the policy will cover your expenses up to the policy limit. If you were at fault, however, you would be responsible for any damages over the limit. Your insurance will also help you pay legal fees, and protect your business in court if someone files a lawsuit against you.

Your commercial auto insurance policy should include liability coverage for your vehicles. Your policy may also cover non-owned vehicles such as limousines and commercial vans. It will also cover your employees’ personal vehicles if an accident occurs. If you run a paint supply business, you should also include insurance coverage for their tools. Similarly, if you have a scaffolding business, you’ll need to insure your scaffolding.

In addition to liability coverage, your commercial auto insurance policy should include a deductible. The deductible is a portion of the claim that you’ll pay upfront before your insurance company pays you. After paying your deductible, your insurance company will pay up to the policy limit. In commercial policies, you’ll usually find that a higher deductible will lower your premium.