What is Commercial Auto Insurance?

How many times in a day you came across road accidents in which you see a vehicle get fully bumped? Accidents don’t consider whether you are a small business owner or an owner of the large organization. While on the road your vehicle is not safe, whether you use it for your personal use or for business purposes.

Commercial Auto Insurance

Commercial Auto Insurance provides you full coverage for your vehicle that you are using for business purposes against road accidents. You must be familiar with automobile insurance, but that doesn’t cover your vehicle that you are currently using for business.

So if your business depends on a vehicle, then you require to get commercial auto insurance. The lousy weather and vehicles on the road both are unpredictable. So it’s better to get your business vehicle insurance just for in case of any unexpected situation. Its life and we never know what the next moment will bring for us.

What Commercial Auto Insurance covers?

Each condition differs from other same for packages of Commercial Auto Insurance. However, there are different kinds of coverages in the basic package of Commercial Auto Insurance while the other coverages you can buy separately.

  • Labiality against auto damage
  • Liability for physical damage
  • Medical payments/bills
  • Personal injury liability (whether you, your employee or any hired driver)
  • Provide liability for insured and uninsured vehicles
  • Collision Coverage
  • Coverage for rented and borrowed auto
  • Comprehension coverage
  • Hired vehicles

What kind of autos commercial auto insurance covers?

  • Trucks
  • Business Autos
  • Trailers

Why do you need Commercial Auto Insurance?

It’s vital to get Commercial Auto Insurance for your vehicle that is used for business purposes. The commercial autos include all the vehicles with a license plate or any commercial tags.

You need commercial auto insurance, whether if you are running a pizza parlor and employees are driving vehicles for deliveries, whether driving people to destinations or you do some other business that requires auto usage like carrying equipment, limo services and much more.

However, your Commercial Auto Coverage policy will keep your business safe from the cost of property damage, severe injuries but also provide liability for your commercial use vehicles.

How much Commercial Auto Insurance costs?

The cost of Commercial Auto Insurance depends upon many factors. It depends upon the liability limit that a person buy, the type of vehicle, the reports of an auto driver being listed and many other coverages that a person selects.

However, the yearly average cost of Commercial Auto Insurance in between $750-$1,200.

Let’s take an example for better understanding. A hotel or a restaurant will use only two or three cargo vans for supplies. So the averages costs for insurance coverage are in between $900-$1,200.

Is Commercial Auto Insurance policy covers a vehicle for personal use?

It mostly depends on the insurer that allows the owner or an employee to use an insured vehicle for personal usage. However, it only happens if the coverage requests and a proper disclosure sets up. The overall cost for personal use vehicle coverage is $50 per year.

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