Commercial Auto Insurance

Commercial Auto Insurance Policies

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Commercial auto insurance is specifically designed for vehicles utilized for the functioning of a business. It assists in protecting the policyholder from liability issues and from expensive repair or vehicle replacement costs should a commercial vehicle be damaged.

Who benefits?

Commercial car insurance can be tailored to all types of businesses that need to use vehicles in any way. Not only is it legally required, it is hugely beneficial for ensuring that the business owner avoids unnecessary legal, medical, or repair costs. Businesses big or small can benefit greatly from carrying this kind of a policy.

How it functions

The business auto policy is not too different from a personal car insurance policy. As in typical car insurance, the company will need to first figure out what coverage levels and types they need and how much their budget will allow. (It is a good idea not to shortchange yourself when it comes to protecting your investment.) Once this is accomplished, the business may then go through the motions of purchasing the policy of choice. The insurance provider will give the company an agreement to sign and, once done, coverage is initiated. The policyholder then simply pays the premiums regularly and on time until the day comes when a claim needs to be filed. This is done in accordance with the set procedures of the insurance provider. The insurance company will then contact the insured company’s representative with the offer of assistance and instructions on how to proceed.

Kinds of coverage

There are two main types of coverage of commercial car insurance. The most often seen is “per vehicle insurance”, which is normally obtained by small to medium sized firms. Larger companies will discover it to be more beneficial and cost-effective to buy “fleet insurance.” A fleet insurance policy is a more comprehensive policy that gives coverage for all the vehicles and drivers at a company simultaneously. This is different from the per vehicle insurance policy. Per vehicle insurance is exactly what the name implies. With this, an individual policy must be obtained for each vehicle used in the operation of the business. All of the employees that use that particular car must also be on the policy.

Helpful and Protective

Businesses that choose the best auto insurance policies they can afford are rewarded with many benefits. They will have liability coverage should someone take legal action against them due to some driving-related incident. The company will also get the proper compensation for a vehicle’s repair costs. Note that some insurance companies prefer to pay  the mechanic directly for  doing the repair work.

Commercial auto insurance is engineered specifically for vehicles used in business and it provides priceless protection from liability. It also gives a company protection from costly repair bills after a company vehicle is damaged. Many experts believe it wise to take advantage of the best policy your business can afford.


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