Commercial auto insurance serves as liability and physical damage protection for a business’s vehicles. These may include cars, vans, and trucks. Insurance policies specifically exist for commercial vehicles because they are often more vulnerable to risk than personal automobiles. Commercial auto insurance policies can have different levels of coverage. Which one you choose depends on factors such as the type of business you own (i.e. its characteristics) and your organization’s specific needs. So, what exactly does commercial auto insurance cover?
The Areas Of Coverage
A standard commercial auto insurance policy typically includes four different areas of coverage. Here is a closer look at these coverage areas.
Auto Liability
Auto liability coverage is designed to help the insured party pay for either property damage or injury-related expenses that occur as a result of an accident. It’s important to note, however, that this type of coverage is generally only helpful in cases where you or one of your employees was at fault for the accident.
Collision Coverage
Collision coverage pays for damages to vehicles of policy owners who have been involved in an accident (regardless of who is at fault) with an object or that resulted in the automobile overturning. The “object” in question may be either a stationary item (.e.g a tree or pole) or another automobile. If your company is located in a major city where there is heavy traffic, (or near a highway) you may especially benefit from this type of coverage, as the risk of collisions is often higher in these areas.
Comprehensive Coverage
This type of coverage pays for automobile damages due to vandalism, weather-related incidents, (e.g. floods, ice, and windstorms) and animal-related incidents (e.g. cat scratching the windows). Comprehensive auto coverage does not pay for damages that result from accidents between two or more vehicles, however.
Medical Payments Coverage
As its name indicates, this type of coverage pays all medical expenses, up to this limit, for any business owners, employees, and passengers who have been involved in a motor vehicle accident. Medical costs are generally paid up to a policy’s coverage limit, no matter who is responsible for the accident.
Certain commercial auto insurance policies may also include uninsured or underinsured motorist coverage. This type of coverage pays for the lost wages, medical expenses, and other damages to anyone involved in an accident that was caused by a driver who is uninsured or underinsured. Uninsured and underinsured motorist coverage is beneficial because it can cover payments that a workers’ compensation insurance policy may not ordinarily cover.
A commercial auto insurance policy can also cover any vehicles your company rents or borrows to conduct routine business operations. The cost of this type of insurance often varies based on several different factors, such as the make, model, and age of your business’s vehicles, the total number of automobiles your company owns, the gross weight of these vehicles, and the collective driving records of all your insured drivers. Crime rates in a geographic location (e.g. car thefts and break-ins) can also sometimes be used to determine risk levels and affect your auto insurance policy rates.
According to the Insurance Information Institute and the National Association of Insurance Commissioners, (NAIC), net premiums written in the United States for private passenger automobile liability insurance totaled $147.3 million in 2019, a figure that marked a 2% change from 2018. Meanwhile, net premiums written for collision and comprehensive automobile insurance totaled $100.4 million in 2019, a figure that marked a 4.1% increase from the previous year. Both types of premiums have risen significantly over the last ten years.
Contact The Knowledgeable Commercial Auto Insurance Agents
Reach out to the knowledgeable agents at Southern State Insurance in Alpharetta, Georgia for more information on commercial auto insurance and its many benefits. Our knowledgeable agents will help you to understand what a commercial auto insurance policy will cover, and make sure your needs are met.
SSI’s commercial auto insurance policies typically include auto liability coverage, collision coverage, comprehensive coverage, and medical payments coverage. We provide insurance protection for taxis, ambulances, commercial vans, and several different types of trucks including dump trucks, tow trucks, and box trucks. Comprehensive coverage and collision coverage each carry a set deductible. Regardless of the number of vehicles your business owns, we are happy to offer you a quote. Call Southern State Insurance today at (888) 971-6304 or contact us online to request a quote.