Small Businesses And Commercial Car Insurance

If you run a small business and have just invested or purchased a car for the company, congratulations are in order. This is a big step in expanding your products and services to new areas and clientele. As a business person, you’ll want to budget your commercial car insurance outright. The good news is that there are ways to get affordable and reliable commercial car insurance for your small business.

Why Commercial Car Insurance is Needed

Basic car insurance is required in nearly every state in the country. The same can be said for commercial car insurance. If a car is being used for professional, business, or work purposes –standard car insurance will not cover it. That is why commercial car insurance is needed. This can be applied to any cars, trucks, vans, or any other utility vehicles being used by your business. At the same time, you will find that commercial car insurance is priced and underwritten differently.

What Commercial Car Insurance Includes

If you understand how standard car insurance works, then you already have an idea of how commercial car insurance will work. Most of the coverages that it includes are also included in standard affordable car insurance; it is just applied to business use. Commercial car coverages include:

Bodily injury liability – This is often what people refer to when they talk about car insurance. If you are at fault for any injuries to another driver or their passengers, then you have a legal obligation to pay for them. Bodily injury liability coverage does just this, along with providing legal aid if it’s needed.

Property damage liability – At the same time, you are also on the line for any damages that you cause to the property or vehicles of other drivers. This is where property damage liability coverage comes in. You would be surprised how much car repairs can be, which makes this insurance all the more necessary.

Medical payments – Of course, you may be wondering if you are injured in an accident that you caused. If the other driver doesn’t cover it, then who does? The answer is you. Medical payments coverage or personal injury coverage covers your own hospital bills in this event.

Uninsured motorist – While car insurance is often required, there are drivers that break that law and drive without any coverage. So if they were to hit you, they would be unable to pay for the damages. Uninsured or underinsured motorist coverage can be applied to your commercial vehicle in order to do so.

Collision coverage – There is also the damage done to your car when you are at fault for an accident. Since the other driver’s insurance won’t cover it, your collision coverage, if you have it, will be there to provide coverage for any repair jobs your car will need in such an event.

Comprehensive coverage – Your car might sustain damage while you’re not using it or when it’s parked. This can be due to criminal or weather hazards like vandalism and storms. This is important coverage to have for business owners because their whole operations may depend on their vehicles. What Businesses Need Commercial Car Insurance Small businesses like couriers, movers, contractors, or simply transportation will always need commercial car insurance for their companies. Even those that just use vehicles to move to and from worksites can greatly benefit and may require commercial auto coverage. Businesses that use trailers will also need such coverage. The coverage alone may be enough to cover it, but if the trailer is more than 2,000 pounds and has at least one axel, it will require its own coverage.

How Much Commercial Car Insurance Costs

On average, commercial car insurance tends to cost around $755 annually to insure just one car. The exact amount you pay will depend on a variety of factors like the size of your business, your employees’ driving records, and how many vehicles you wish to insure. Commercial car insurance is sold everywhere that offers car insurance, so shopping and comparing different rates is an easy task. This is how you will find the most affordable commercial car insurance.