The process of finding the appropriate coverage to buy commercial auto insurance in New Jersey is fairly straightforward, and you can work with a licensed business insurance agent or broker to help you. When you use vehicles frequently, you run the risk of theft, damage, or accidents that could be very costly for your company. This is where commercial auto insurance comes into play – it’s an investment in safeguarding your company from the unforeseeable and unpredictable nature of New Jersey traffic. We’ll examine commercial auto insurance in New Jersey in more detail in this article, along with the range of coverage options available and how each one can help your company.
Commercial Auto Insurance NJ
New Jersey typically requires a commercial auto insurance policy for any company that owns, leases or uses vehicles regularly. Businesses that own one or more cars and use them for work-related activities like delivering products, moving people, or providing on-site services may fall under this category. Contractors, trucking firms, delivery services, and other types of businesses are a few that may require this kind of auto insurance in NJ. I
The State of New Jersey mandates that all motorists and business entities acquire a minimal insurance policy that protects automobiles used for either personal or commercial purposes. The potential penalties for breaking this law include fines and license suspension.
NJ law stipulates that the fundamental policy must offer a minimum of $30,000 per accident in liability protection for bodily injuries, with $15,000 per person as well. Furthermore, the policy must include $5,000 in liability for each accident’s property damage.
In addition to abiding by the law, all businesses ought to carry at least the most fundamental commercial auto liability insurance to safeguard their financial resources.
New Jersey business auto insurance provides safety if one of your commercial vehicles gets into an accident that results in liability or property damage. If you permit employees to use company vehicles, your risk increases, necessitating the need for adequate insurance.
The following applies to commercial vehicles registered in New Jersey:
- $15,000 property damage liability per accident
- $30,000 bodily injury liability per accident
- $5,000 bodily injury liability per person
How Does CVI Work in New Jersey?
However, there are some significant differences between how commercial vehicle insurance functions in New Jersey and how personal auto insurance does. A commercial auto insurance policy covers liability, physical damage, and other potential losses associated with the use of a commercial vehicle.
Liability insurance protects your company car and other assets from financial loss if you or a member of your staff is liable for an accident while operating a commercial vehicle.
It is unquestionably advantageous to have liability insurance because it can assist in covering the costs of property damage, bodily injury, and other related costs, such as legal fees or medical bills. You also have physical damage insurance, which protects your commercial vehicles from loss or damage caused by a covered occurrence like an accident, theft, or vandalism of a company vehicle.
Commercial auto insurance in NJ provides additional options in addition to these standard selections, including full collision protection, uninsured motorist protection, medical payments protection, and others. Of course, depending on your company’s unique needs and risks, you will need to determine the exact type and amount of coverage you require.
What’s the Difference Between Commercial and Business Auto Insurance?
Delivery trucks, commercial vans, or company cars are examples of vehicles that commercial auto insurance covers because most organizations use them primarily for business. On the other hand, business auto insurance is a broader term that refers to all types of insurance coverage for cars used for business, including both commercial and personal vehicles.
Business auto insurance also covers employee-owned vehicles used for business-related purposes. Business vehicle insurance, also referred to as commercial auto insurance, is frequently more specialized and tailored to the needs of businesses that operate commercial vehicles. While, business auto insurance, on the other hand, is a more general term that can refer to a variety of insurance coverages for vehicles used in a business context.
Best Commercial Auto Insurance NJ
In New Jersey, you must have commercial auto insurance if you drive for work-related purposes.
#1. Progressive
Progressive provides a wide range of commercial insurance. This is the biggest commercial auto insurer in the nation and provides a variety of services. BOP, general liability, professional liability, workers’ compensation, cyber insurance, commercial auto, and contractors liability are among the services it provides. The Progressive website offers quotes in just a few minutes and has several resources, including articles and FAQs, to assist you in understanding your coverage requirements. Additionally, the business is supported by a nationwide network of independent agents. You can submit a claim over the phone or online.
Additionally, this insurance company can cover a wide range of automobiles, including commercial vehicles, trucks, and trailers. Commercial auto insurance policies from Progressive offer a lot of customization options. For its commercial auto insurance, Progressive provides a variety of discounts, including those for CDLs, bundling, and electronic funds transfer (EFT) payments. Additionally, if you insure your car with Progressive, you are eligible for a discount.
#2. State Farm
In addition to other types of protection, State Farm also provides BOP, commercial auto, liability, workers’ compensation, inland marine, E&O, EPLI, key person coverage, and other types of protection. State Farm also offers retirement plans, and its “Small Biz Quiz” tool on the company website is a useful tool for helping you determine coverage needs. Only its local agents can provide quotes and sell policies, and the website doesn’t seem to have a way to report claims; you’d have to give the business a call. Since State Farm doesn’t offer an online quote tool, you’ll need to contact a local agent to obtain a quote or buy a policy. On its website, there is a chat feature and a search bar to help you locate an agent nearby.
#3. NJM
With its headquarters in New Jersey, NJM provides commercial insurance to clients throughout the mid-Atlantic region. The supplier offers workers’ compensation, commercial auto, excess and umbrella insurance, EPLI, cyber insurance, business owner’s policy, and commercial package policies.
Property protection, liability protection, business income protection, inland marine protection, and crime protection are all included in the commercial package policy. It is comparable to BOP but serves companies with greater coverage requirements. With the small business insurance policies offered by NJM, you can request a quote online or from an agent and submit a claim either over the phone or online.
#4. Geico
Geico, a Berkshire Hathaway company, provides commercial auto insurance. It provides coverage for many different kinds of vehicles, including vans, cars, box trucks, and service utility trucks. The National Association of Insurance Commissioners (NAIC) reports that Berkshire Hathaway has had very few complaints about its commercial auto insurance policies across all of its subsidiaries. Liability, property damage, bodily injury to others, and driver injury are additional crucial commercial vehicle insurance clauses. Online quote requests from Geico are simple to complete, and the company rewards new clients and clients who bundle several policies with excellent discounts.
#5. Farmers
Businesses in a variety of industries can take advantage of Farmers’ comprehensive commercial auto insurance programs, which include programs tailored especially for food trucks. Several endorsements, including loss of use protection and insurance for rental cars, can be added to your policy to make it more specialized. Additionally, Farmers offers a telematics program in some states that enables you to track the whereabouts and driving patterns of your employees while they are using company vehicles. Along with offering a lot of the standard commercial auto coverages, Farmers excels in offering tailored coverages for contractors. For instance, Farmers provide coverage for both the vehicles used by contractors and the pricey tools they transport as well.
Commercial Auto Insurance NJ Cost
Every company has different requirements for its insurance coverage, whether they be for liability insurance, workers’ compensation insurance, or other policies. Insuring a commercial vehicle follows the same principles. The price of the premiums for commercial auto insurance that businesses must pay can vary depending on the specific circumstances of different companies.
Your price depends on a few things, such as:
- Number of vehicles
- Vehicle type and value
- Level of risk involved
- Claims history
- Employee driving records
- Policy deductible and limits
What Else Does Commercial Auto Insurance Cover?
While all New Jersey business owners must carry liability insurance, no other types of coverage are covered by this requirement. This can safeguard you if one of your vehicles is at fault for an accident, but it does not provide liability insurance. for example, all roadside assistance is covered by towing and labor coverage for company-owned vehicles.
To ensure that you are completely covered, it is important to take into account the following additional commercial auto coverage options:
#1. Uninsured Motorist Coverage
If the party responsible for the accident is unable to pay for all damages, uninsured motorist coverage protects you against bodily harm and property damage involving a company vehicle. This covers medical costs incurred as a result of bodily injury caused by an uninsured or negligent driver.
#2. Medical Payments Coverage
Regardless of who was at fault, medical payments coverage covers medical costs if employees or passengers are hurt while riding in a company-owned vehicle. Designed to cover any reasonable medical costs that you and any accompanying passengers incur as a result of an accident.
#3. Collision Coverage
This assists in covering the expense of fixing or replacing the damage to your company vehicle, regardless of who is at fault. Receive compensation for vehicle damage caused by collisions with other vehicles or objects, such as trees.
#4. Comprehensive Insurance
This insurance will pay for any damage caused by fire, flood, theft, vandalism, or any of these events. This insurance pays for the replacement or repair of any covered vehicles that are damaged or destroyed by vandalism, theft, floods, fires, or other covered events, less the deductible.
#5. Bodily Injury Liability
If you are at fault for an accident that results in the death or personal injury of one or more people, this coverage pays the ensuing indemnification and court costs.
#6. Loading and Unloading Coverage
Loading and unloading coverage covers damages to pieces of equipment and materials that occur during transport, loading, or unloading.
#7. Bobtail Coverage
Having bobtail coverage is recommended when using tractors without a trailer. Typically, it offers complete coverage for the insured car at all times, including for personal use.
For companies that depend on vehicles to run, commercial auto insurance (CAI) can be a significant cost. The cost of your commercial auto insurance in New Jersey can be reduced in several ways, though.
#1. Improve Your Driving Record
Your driving record is one of the most important factors insurers consider when calculating the premium for your commercial auto insurance. Your premiums will be higher if either you or your drivers have a history of misdemeanor or serious traffic infractions. To lower your premiums, focus on improving your driving record. Promote defensive driving training and the use of defensive driving techniques among your drivers.
#2. Pick Your Vehicles Carefully
Your commercial auto insurance premiums may vary depending on the kind of vehicles you use for your business. Insurance premiums for some cars, such as sports cars or cars with high-performance capabilities, may be higher. To help reduce your premiums, take into account selecting vehicles with high safety ratings and affordable repair costs.
#3. Increase Your Deductible
Another method to reduce the cost of your New Jersey commercial auto insurance is to raise your deductible. Your deductible is the amount you pay out-of-pocket before your insurance kicks in. You can reduce your premium by raising your deductible, but keep in mind that if you get into an accident, you will have to pay a higher out-of-pocket amount.
#4. Bundle Your Insurance
You may be able to reduce your premiums by combining your commercial auto insurance policy with other insurance policies, such as property or general liability. Many insurance companies give discounts to companies who bundle their policies.
#5. Compare Prices
Don’t be afraid to conduct your research and compare rates from different insurers. Changing to a different insurer or haggling with your current insurer may help you find a better deal.
In New Jersey, Who Is Required to Have Commercial Auto Insurance?
Any business operating in New Jersey that uses a vehicle for work-related purposes must carry the necessary insurance. Vehicles owned by your company are covered by commercial auto insurance, whereas vehicles used for business purposes that are leased, rented, or personally owned are covered by hired and non-owned auto insurance (HNOA).
How Much Does Commercial Car Insurance Cost?
Although the average monthly premium for commercial auto insurance is about $147, your premium is determined by several variables, such as the insurer you choose and the coverage options and limits you choose. You might be required by state law to carry a policy with a minimum level of coverage.
What Are the Requirements for Commercial Auto Insurance in New Jersey?
The insurance requirements for commercial vehicles in New Jersey require that all commercial auto policies must comply with state law, which stipulates that their minimum liability limits must be $15,000 per person, $30,000 per accident for bodily injury, and $5,000 for property damage.
What Is the Difference Between Commercial and Business Auto Insurance?
Business insurance and commercial auto policies differ most in how they treat vehicles used for business. Business auto insurance protects vehicles used in daily traffic, whereas commercial auto insurance protects vehicles used for specific tasks.
What Does Any Auto Mean on a Commercial Auto Policy?
Any auto coverage is a short-term addition to your commercial auto insurance plan that enables you to purchase new vehicles for your business without worrying about whether they are insured. Liability coverage for hired and non-owned cars, as well as vehicles you buy during the term of your policy, is extended by Any Auto coverage. frequently known as hired or non-owned vehicle liability insurance.
Does Geico Cover Doordash Drivers?
The rideshare insurance program provided by GEICO protects DoorDash drivers through a hybrid insurance plan. Whether you’re making a food delivery or just enjoying a leisurely drive, the carrier converts your personal insurance policy to cover you whenever you’re in your car.
Conclusion
Many businesses depend heavily on their vehicles for day-to-day operations. Nevertheless, mishaps, damage, and other unforeseen circumstances can happen, leaving businesses open to suffering financial loss.
Therefore, commercial auto insurance is essential for any company that depends on vehicles. You can feel secure knowing that your company is guarded against the dangers involved in using vehicles for work purposes by investing in the appropriate coverage. Any business that uses company vehicles needs to have commercial auto insurance. Although it may require some work, finding the best insurance plan for your company shouldn’t be too challenging if you work with the right insurance agent to identify your requirements, investigate your options, and position yourself as a low-risk investment.
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