If your company owns a car, you will very likely need commercial auto insurance. This is because it covers legal bills, medical expenses, and property damage if a business vehicle is involved in an accident.<\/p>\n\n\n\n
Commercial auto insurance covers vehicles used for business purposes, whether or not they\u2019re owned by your company. The coverage is a must for small-business owners who drive to work sites or to meet clients, deliver goods, and haul tools or supplies. Companies with employees who drive their vehicles also need it.<\/p>\n\n\n\n
Commercial car insurance is separate from rideshare insurance and personal auto insurance, though you can often bundle these to save money. You may also be able to package this coverage with other types of business insurance, including general liability and commercial property insurance.<\/p>\n\n\n\n
Commercial auto insurance is a type of car insurance specifically designed for vehicles used for business purposes. It is a contract between you and your insurance company that outlines how your insurance company compensates you for financial losses if a business vehicle is involved in an accident or other problem covered by your policy.<\/p>\n\n\n\n
Business vehicles can include company cars and commercial trucks and vans. Box trucks and food trucks are other examples of vehicles that can be covered by commercial auto insurance. Your personal car insurance won\u2019t pay a claim if you\u2019re driving a car for business and get into an accident.<\/p>\n\n\n\n
A commercial auto insurance policy typically includes:<\/p>\n\n\n\n
Commercial policies could include other coverage, like towing and labor, rental reimbursement and lease gap coverage. However, they generally don\u2019t cover tools or other items you\u2019re carrying in the vehicle. A business owner\u2019s policy \u2014 which contains commercial property insurance protections \u2014 can cover tools owned by the company, while a home or renters insurance policy covers personal belongings in the vehicle.<\/p>\n\n\n\n
A commercial auto insurance policy works like a personal car insurance policy, except it covers your work vehicles such as delivery vans, trucks and company cars. It pays for injuries and property damage to others if you or an employee cause an accident while driving your work vehicle.<\/p>\n\n\n\n
Commercial auto insurance also pays to repair or replace your work vehicle if you buy additional coverage types such as collision and comprehensive insurance.<\/p>\n\n\n\n
Many of the household names in consumer auto insurance also offer commercial policies. Below are some high-rated consumer car insurance companies that also offer commercial policies:<\/p>\n\n\n\n
The Hartford\u2019s commercial property policies are divided into two categories: small businesses with less than $200 million in total insurable value and large businesses that go over this threshold. While the essential coverage for both remains the same, each policy is tailored toward the specific needs that change based on company size. <\/p>\n\n\n\n
Aside from general liability, commercial property insurance is the most universally carried business coverage you’ll find since it safeguards everything from tools and equipment to office furniture from theft and damage. The Hartford offers commercial auto insurance policies that apply to any business, from entrepreneurs who work from home to large corporations with hundreds of millions of dollars in property to insure.<\/p>\n\n\n\n
Commercial property quotes from The Hartford are generally available online. However, you may need to work with an agent to get a quote if you have a large company or need specialized coverage.<\/p>\n\n\n\n
Next Insurance offers commercial auto insurance that can be customized to your specific business needs. Its property insurance can cover business goods and gear, inventory, buildings, equipment breakdowns, and business income interruptions. You decide what you want and need, and its quoting system lets you customize the policy to fit your specific business needs.<\/p>\n\n\n\n
However, the provider lacks a 24\/7 call center.<\/p>\n\n\n\n
With policies written for over a million commercial vehicles as of 2022, Progressive is easily the biggest commercial auto insurer and one of the best commercial insurance companies in the United States. While competitors impose limitations on certain vehicle types and industries, this carrier covers a wider variety than anyone else.<\/p>\n\n\n\n
It offers policies for trucks, buses, trailers, and even personal vehicles that are partially used for business purposes.<\/p>\n\n\n\n
Commercial auto policies from Progressive also offer unmatched convenience, including 24\/7 customer phone service and coverage. You can also save money on your business insurance policy when you bundle commercial auto with another type of coverage, such as general liability or a BOP.<\/p>\n\n\n\n
State Farm has consistently ranked within the top three insurers for customer satisfaction over the last three years. It even has a higher NAIC complaint index than Chubb, and was awarded 856 out of 1,000 points for customer satisfaction in J.D. Power’s Small Commercial Insurance Study.<\/p>\n\n\n\n
State Farm offers commercial auto insurance designed for independent contractors, restaurants, professional services, and retailers, with paperless billing and autopay options. Commercial insurance products include BOP bundles, surety and fidelity bonds, and farm and ranch insurance.<\/p>\n\n\n\n
Allstate\u2019s business insurance offerings are fairly standard, but it doesn\u2019t offer as many options as some of the other insurers. These include workers\u2019 compensation, medical malpractice, directors and officers (D&O) liability, and farm and ranch insurance. <\/p>\n\n\n\n
While Allstate doesn\u2019t provide its own workers\u2019 comp policy, an agent may be able to help you obtain coverage through a different carrier.<\/p>\n\n\n\n
The insurer\u2019s business owner’s policy (BOP) may be the only way for companies to get commercial auto insurance coverage. It combines general liability, commercial property, business interruption with extra expense, and equipment breakdown coverage. Allstate also offers various endorsements that can extend a business\u2019s scope of coverage. <\/p>\n\n\n\n
Commercial auto insurance costs an average of $147 per month<\/strong>, according to Insureon<\/a>. But Insureon estimates that more than two-thirds (37%) of its small business customers pay less than $100 a month for commercial auto insurance.<\/p>\n\n\n\n Your commercial auto insurance costs will depend on factors such as:<\/p>\n\n\n\n Follow these steps to get commercial auto insurance.<\/p>\n\n\n\n Certain business usage and vehicle types may be excluded from personal auto insurance policies. Why? Since personal auto policies were not meant for businesses, they are written and rated differently. More important to you\u2014a business owner or manager\u2014businesses often need the particular coverages found in a commercial auto insurance policy.<\/p>\n\n\n\n Determining whether your situation requires commercial auto coverage can still be confusing. Here are instances where you need a business auto insurance policy:<\/p>\n\n\n\n Business vehicles covered by commercial auto insurance include:<\/p>\n\n\n\n Commercial auto insurance provides coverage for vehicles used for business purposes. It includes liability coverage for third-party injuries or property damage, as well as coverage for damage to the insured vehicle.<\/p>\n\n\n\n Commercial auto insurance is similar to personal automobile insurance; it protects your cars, trucks or vans in the event of damage, injury or liability claims. However, commercial auto insurance provides additional coverage, including property and liability trailer exposure, loading and unloading exposure, hired vehicle coverage, non-owned vehicle coverage, and higher coverage limits. <\/p>\n\n\n\n This type of insurance is essential for businesses that own or use vehicles as part of their operations. It protects them from potential liability claims and financial losses resulting from accidents or damage to vehicles.<\/p>\n\n\n\n Personal auto insurance, on the other hand, is for vehicles used for personal purposes. <\/p>\n\n\n\n Your personal auto policy only covers personal driving, whether you\u2019re commuting to work, running errands or taking a trip. It will not<\/em> provide coverage if you use your car for commercial purposes \u2014 if you deliver pizzas, for instance.<\/p>\n\n\n\n Personal auto insurance will also not provide coverage if you use your car to provide transportation to others through a ride-sharing service such as Uber or Lyft. Some auto insurers, however, are now offering supplemental insurance products (at additional cost) that extend coverage for vehicle owners providing ride-sharing services.<\/p>\n\n\n\n If you are self-employed and drive your personal vehicle for business purposes, you may be covered under your personal automobile insurance. If you own your car, truck or van and only use it occasionally for work, you may be able to skate by with standard personal auto insurance designated for business use. <\/p>\n\n\n\n However, if you operate a company-owned vehicle, your vehicle is specifically designated for work, or you need higher coverage, you may need a commercial automobile insurance policy.<\/p>\n\n\n\n Not having commercial auto insurance puts you at risk of having to pay for damage and injuries involving your company vehicles.<\/p>\n\n\n\n Without the coverage, you may wind up paying medical bills and legal fees if you or an employee are injured in an accident involving a business vehicle. You will also have to pay for damages, injuries and potential lawsuits for people in other vehicles and property owners.<\/p>\n\n\n\n Commercial vehicle insurance additionally offers collision and comprehensive coverage, which helps pay to repair or replace your work vehicle for problems such as car accidents, theft, vandalism, floods, fires, severe weather and collisions with animals.<\/p>\n\n\n\n\n
How to get commercial auto insurance quotes <\/strong><\/h2>\n\n\n\n
\n
When and why do I need commercial auto insurance?<\/strong><\/span><\/h2>\n\n\n\n
\n
What kind of vehicles are covered by commercial auto insurance?<\/strong><\/h2>\n\n\n\n
\n
Commercial auto insurance vs personal auto insurance<\/strong><\/span><\/h2>\n\n\n\n
Why do you need commercial auto insurance?<\/strong><\/h2>\n\n\n\n
Recommended Articles<\/strong><\/span><\/h2>\n\n\n\n
\n
References<\/strong><\/span><\/h2>\n\n\n\n
\n