Understanding the Importance of Commercial Auto Insurance

Many businesses rely on cars, trucks, vans and other types of automobiles for daily tasks and key functions. But while essential, motor vehicles invoke inherent risks, as accidents on the road and other damaging incidents could incur costly financial repercussions. Even if you’re meticulous in hiring only the most responsible and experienced drivers, and fully commit to diligent vehicle maintenance, commercial auto insurance should be considered a necessary precaution.

How Does Coverage Work?

A commercial auto insurance policy represents a contractual agreement between a policyholder and their insurance carrier. When selecting a policy, you’ll typically be able to choose from a menu of financial protections and customize various aspects of your coverage, such as your limits and deductibles. Once you’ve chosen a policy, you’ll pay regular premiums in exchange for retaining the ability to file a claim for financial aid if your vehicles are damaged or involved in accidents.

What Should My Policy Include?

Commercial auto insurance may be composed of several types of coverage, each with the potential to offset financial losses related to insured vehicles. Although your exact coverage needs may vary, many businesses may prioritize the following features:

• Liability coverage is often needed to fulfill legal obligations and can compensate other parties if you’re at fault for an accident.

• Collision coverage can help you manage repair costs if an insured vehicle is damaged in a crash.

• Comprehensive coverage may also address vehicular damage, potentially issuing aid in response to fires, theft, vandalism and severe weather.

• Uninsured/underinsured motorist coverage can help your business recoup losses if someone else is at fault but cannot cover them.

• Hired/non-owned vehicle coverage can extend liability coverage to automobiles your business does not own but are being used for its purposes, such as if employees use their personal vehicles while on the clock.

How Much Will I Pay for Insurance?

Commercial auto insurance rates can be influenced by a multitude of factors, often including the following:

• Location

• Industry

• Insured drivers’ records

• Fleet details (e.g., number of vehicles, types, makes and models)

• Claims history

• Policy details (e.g., deductibles, limits and endorsements)

How to Get Commercial Auto Insurance Near Me

Contact Ramey Insurance Agency in Venice, FL today to discuss your commercial auto coverage options and find a suitable policy.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.