Finding the right commercial auto insurance company can be quite challenging. This is why we will be exploring here in this article some of the best ranked commercial auto insurance companies in us, the cost of commercial auto insurance in us, how commercial auto insurance in us works, etc.
What Is Commercial Auto Insurance?
Commercial auto insurance refers to a broad type of insurance policy designed to protect vehicles used for businesses from risk.
Commercial auto insurance is an insurance policy that protects small businesses when a company vehicle is involved in an accident, vandalized, stolen or otherwise damaged.
Commercial car insurance covers the expenses and bills of a business-owned vehicle that is involved in an accident. Commercial auto insurance is required for any car used mainly for work purposes. In US, you must have commercial auto insurance if you drive your car or truck primarily for business or if your company owns a fleet of vehicles.
While personal and commercial car insurance is similar in many ways, commercial auto insurance is designed primarily for cars that are used by or for a business.
What Is the Difference Between Commercial and Regular Auto Insurance?
A personal auto insurance policy usually covers one person driving their personal car, while a commercial auto insurance policy covers an entire business. That could include multiple drivers, multiple vehicles, trucks, and also employees with poor driving records.
What Does Commercial Auto Insurance Covers
Like the personal car insurance policy, a commercial auto insurance policy provides coverage for liability, collision, comprehensive, personal injury protection, and uninsured motorists.
But the commercial auto insurance policy is different in who’s eligible, coverage, exclusions, and the limits.
Below are what commercial auto insurance in United States offers:
The Bodily injury liability: this coverage covers for injuries that you cause to another person.
The Property damage liability: this coverage covers for cases whereby your vehicle damages someone else’s property, and you are legally responsible. The property damage liability also pays for one’s legal defence if one is sued over the incident.
The Combined single limit (CSL): this liability insurance offers an overall limit for bodily injury and also property damage claims against you rather than two separate limits.
The Medical payments and personal injury protection (PIP): this coverage pays for the medical expenses for you and also the passengers in your car when there is an accident. The PIP is only required in no-fault insurance states.
Collision insurance: this coverage covers for the damages caused to your own vehicle when the vehicle hits or gets hit by another car.
The Comprehensive insurance: this coverage pays for damages to your vehicle from flood, theft, fire, vandalism and other specific problems/events.
The Uninsured motorist (UM) coverage: this coverage covers for the injuries you and/or your passenger incurred if hit by an uninsured driver or a person who has auto insurance but is not enough to cover for all the medical bills. In some states, one can buy the UM coverage, which pays for damage to your vehicle from an uninsured driver.
Why Is Commercial Auto Insurance Important?
Your business can be in financial jeopardy without commercial auto insurance coverage. Any business which has its own vehicles must at least carry auto liability insurance.
If by chance, your business vehicles are at fault in an accident, and you are not covered, you could face an expensive lawsuit or settlement. You will likely have to pay for the damages caused to the other vehicle or property, pay for the medical bills, lost wages, plus other related costs.
Also, you can be faced with severe penalties for not having commercial auto insurance. If you are cited for not owning insurance, you might receive a fine of about $350, have your vehicle impounded, and also see an increase in your auto insurance rates. In case of repeated offence, the fine can increase to $1,800, and the state may also suspend your license for up to four years.
How Does Commercial Auto Insurance Work in US?
The Commercial auto insurance in us covers vehicles used for the purpose of business and also the people who drive them.
Suppose you or the drivers of your business vehicle are involved in an accident, and the accident was caused by them leading to injuries to another person or damages to their property.
In this case, they can file a claim on your policy and bring a lawsuit against you or the said driver. Your liability insurance policy will cover the costs of damages on the claim up to the insurance policy limit. You or your business will be totally responsible for any amount of damages that are above the limit. Your liability insurance policy will also cover the costs to defend the driver of your business vehicle or yourself in an accident-related lawsuit, separate from the policy limit.
How Can I Purchase Commercial Auto Insurance in US
You can purchase/buy commercial auto insurance In us through:
An independent insurance agent: They will take time to understand your business operations and the vehicle you use so they can be able to find optimal coverage at a fair price for you. The agent will also guide you through all the claims processes when an incident occurs.
Using just one agent for all of your business insurance may help ensure that your business has maximum protection and you are not paying for unnecessary duplicate coverage.
Below Is a Ranking of the Largest Sellers of Commercial Auto Insurance in US:
- Progressive: 12.33%
- Travelers: 6.33%
- Old Republic Insurance: 4.17%
- Liberty Mutual: 3.74%
- Nationwide: 3.67%
- Zurich: 3.59%
- Berkshire Hathaway Inc.: 3.24%
- Allstate Corp: 2.36%
- Chubb: 1.98%
- W. R. Berkley Corp.: 1.86%
- AIG: 1.82%
Note that the cost of commercial auto insurance is based on the company’s size, the location, and the amount of coverage needed.
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