Commercial auto insurance is designed specifically for vehicles owned or used by businesses. It will include unique terms and conditions to better address the property risks and liabilities faced by businesses with investments in vehicles and employee drivers. 

-Vehicles that might qualify for commercial auto insurance include: 

-Vehicles or company fleets owned by businesses 

-Someone’s personal vehicle that they drive for business (either their own or their employer’s) 

A business-owned vehicle provided to employees for full-time use 

Certain personal vehicles that are considered commercial due to their weights or designs 

With the correct policy, you can often insure all vehicles and employee drivers operating under your authority. Your agent is happy to discuss the finer points of vehicle ownership with you to determine how best to apply coverage to your business.

Following commercial vehicle accidents, a business might face considerable costs of repairing damaged vehicles and compensating other for damage that was the commercial driver’s fault. Commercial auto insurance can help the business adequately cover the costs of recovery. Therefore, the business won’t suffer undue financial setbacks just because of unfortunate accidents

All commercial auto policies vary. However, most offer a few specific benefits, such as: 

-Liability Insurance: If the insured driver is at fault for an accident, this coverage can compensate other impacted parties. It can pay for third party bodily injuries and property damage. 

-Collision Insurance: After a collision with another vehicle or object, this coverage can compensate the policyholder for the vehicle’s damage. 

-Comprehensive Insurance: When a commercial vehicle sustains damage from hazards other than wrecks, this coverage can pay for the vehicle’s repairs. It might pay following vehicle fires, theft, storm damage, vandalism or animal collisions. 

-Medical Coverage: Should the commercial driver get hurt in a wreck, this coverage can pay for their medical costs and related experiences.* 

-Uninsured/underinsured Insurance: There is a chance that someone else might be at-fault for an accident. However, they might not have liability insurance to compensate the business for the harm done to it. This coverage lets you use your own policy to cover your own losses. 

Additionally, you might need additional coverage that is more specific to commercial vehicles, such as: 

-Hired/non-owned auto liability insurance that covers the business’s liabilities when an employee drives their personal car on official business. 

-Inland marine insurance and motor truck cargo insurance cover the business’s cargo and other equipment carried within the business. 

 

Commercial drivers usually face legal requirements to carry certain commercial auto coverage. Depending on the vehicle you drive and factors like your cargo, your coverage requirements will vary. Your agent will know how to apply the appropriate mandatory coverage to your vehicle. 

 

* Medical payments coverage does not take the place of workers’ compensation insurance for which an employee driver might qualify.

Commercial auto insurance costs can vary considerably based on numerous factors like: 

-The number of vehicles and drivers you wish to insure 

-Your business’s location 

-The types & values of the vehicles you own 

-Your selected coverage limits and deductibles 

-The driving records of all insured drivers 

-Each vehicle’s mileage and average usage 

On average, policies will range from about $1,200 per year for a single commercial car to more than $2,000 per year for large commercial trucks and specialty vehicles. However, your agent can work with you to determine the best policy options for your business to keep your coverage affordable.