Car insurance is designed for vehicles used by individuals and professional drivers. The different types of commercial motor vehicles on the road are semi trucks, taxis, buses, and trailers. In addition, company vehicles are used by small businesses to make small deliveries to local customers. Commercial auto insurance covers vehicles used for commercial purposes, such as towing heavy debris and delivering mail. The insurance options are different for commercial vehicles that are equipped with more heavy-duty features than non-commercial vehicles.
Commercial auto insurance is needed by any professional who uses a vehicle for business-related tasks. The vehicle is used more often and more intensely than a non-commercial one is, so there are more coverage options for collisions, thefts, and property damages.
Commercial vehicles carry heavy weights and cause more damages during accidents, so the costs to insure are high. The insurance company assumes a greater risk when insuring large vehicles.
However, commercial vehicle insurance provides financial security and peace of mind to business owners and their drivers. They are not concerned about causing thousands of dollars in damages for a small accident. The business continues operating as the insurance company deals with the claim.
The type of coverage to buy depends on the type of commercial vehicle to ensure. A general type of auto coverage is liability insurance that protects your company from an accident-related lawsuit. Property damage insurance covers damages made to homes, cars, and structures. A bodily injury policy covers damages made to people, such as passengers, other drivers, and bystanders.
A general auto plan may not cover lost, stolen or damaged items within the vehicle. Instead, purchase a separate “goods in transit” policy with costs based on the value of the items.
Equipment breakdown coverage is designed for average commercial vehicles that add hundreds of miles on the odometer every week. This type of insurance is important for businesses that must continue running while the vehicle undergoes repairs.
Trailers carry a variety of heavy loads like cars and farm equipment. Trailer interchange insurance covers the theft of goods and trailer damages caused by fires or collisions.