What Is Commercial Auto Insurance?

A commercial auto insurance policy is a legal document that covers the costs of a vehicle that has been involved in an accident. These policies are required in many states, and they may be complemented by technology solutions. For example, telematics, an innovative way to track and monitor the driving habits of your employees, can help you reduce the number of accidents. However, telematics is not available in all states, and you should check with your state’s laws before implementing telematics.  south carolina auto insurance quotes

A commercial auto insurance policy also pays for damages that occur to another vehicle or a building. The policy will also cover your legal costs. Different types of commercial auto insurance policies have different amounts of coverage. The most common limits of liability are collision, uninsured motorist, and auto liability. However, many policies do not cover the contents of the vehicle. To reduce the premiums on these policies, you must take appropriate action.

Insurers often target companies with multiple employees and high annual revenue. Therefore, many commercial auto insurance policies are not suitable for sole proprietors and small business owners. Therefore, it is necessary to choose a commercial auto insurance policy that is tailored to suit your needs. Companies such as Next Insurance specialize in policies for self-employed individuals and small businesses.

The cost of commercial auto insurance is usually higher than the cost for personal auto insurance. For instance, a policy covering a one-million dollar business vehicle is more expensive than the cost for a million dollar personal policy. For a small business, liability insurance may not be necessary. A commercial auto insurance policy will protect you against any damages incurred to the vehicle while it is in use for business.

A commercial auto insurance policy provides liability and physical damage coverage for the business vehicle. It covers a variety of types of vehicles, including company cars and commercial trucks. While it may not be an essential part of a small business’s business model, the policy should be purchased for a large fleet of vehicles.

There are several special endorsements to look for when choosing a commercial auto insurance policy. The limits may vary based on the type of vehicle you drive. For example, Uber and the Taxi and Limousine Commission require drivers to carry a $100,000/$300,000 limit on their insurance. However, the limits can be higher for larger vehicles, such as a tractor-trailer.

If you have employees who use personal vehicles for business purposes, you should consider expanding your commercial coverage to include their personal vehicles. Likewise, you should also consider extending your coverage to include non-owned automobiles. Each type of business has different risks, and the type of insurance you choose should match your business’ needs.