Get The Facts On Commercial Car Insurance

Commercial car insurance differs from traditional auto insurance in that it covers vehicles that are used in the course of operating your business. General auto insurance policies historically do not provide coverage for the commercial use of a vehicle.

Whenever a car is used as a part of a business, many states will mandate that commercial automobile insurance is necessary. While there are many common aspects between commercial and consumer automobile insurance, there are some differences and we will take a look at them here in this article.

If you for instance are in a business where it is necessary to tow a trailer behind your car then you’ll need a commercial insurance policy to cover your vehicles. It is important to check with your state to see what they require. You can do that by consulting the Secretary of State’s motor vehicle webpage.

In order to find the best deals on insurance rates we suggest you go on the Internet where you will find auto insurance comparison websites. Simply fill in your information and a host of insurance companies will crunch the numbers and get back to you with coverage and rate information.

This is a great way to conveniently do some comparison shopping and uncover the best deals. Remember, you are under no obligation to do business with any of the companies that supply you with quotes so do not feel as though you are pressured in any way just because they gave you information.

Remember that the higher your deductible, the lower your premium will be. You will have to decide for yourself how much you want to pay for your insurance but you must keep in mind that if you have a very high deductible then the business will be on the hook for quite a bit of money if there should be a claim made. This is a risk assessment decision that you have to make for yourself.

Some of the coverages that will be included in a commercial car insurance policy include:

Accident Coverage – This coverage is the same as the general coverage you will find on automobile insurance. It provides reimbursement for such things as medical, loss of earnings, funeral expenses and disability.

Intermediary Liability Coverage – This coverage is designed to protect the business itself. If whoever is driving the automobile owned by the business is held liable for injuring someone, or damaging property, then this portion of the liability coverage will take care of that. If however, the driver has done something that is not specifically covered is laid out in the insurance agreement, such as a criminal act, then the company may be held liable for the driver’s actions.

Uninsured Motorist Coverage – This is the same as you would get for your personal vehicle. It covers whoever is operating the car that you used for your business when there is an accident caused by an uninsured or under-insured driver.

Reimbursement Coverage – This coverage will reimburse your business for any expenses or costs incurred such as theft and damage to the vehicle or any material within it when the other party is found to be at fault for causing the accident.

Like just about everything else these days commercial car insurance is becoming increasingly expensive. That is why it is so vitally important that you shop around to get the best deals.

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