You probably have your personal motor vehicle covered. What about the vehicles you use for your business? Are they protected by insurance too? Commercial auto insurance coverage is just as important and necessary as personal motor vehicle insurance.
Commercial motor vehicle insurance would cover for any liabilities in case of accidents, thefts or any unfortunate occurrence involving the vehicles you use for your business. Therefore, if you have not insured the vehicles you use for your business, you should probably do that now.
Typical examples of business vehicles that need to be insured include; passenger cars and buses, mini vans, delivery vans, Ice-Cream trucks, cement mixers, catering trucks, tow trucks, sports utility vehicles, limousine, hearse, flatbed trucks, garbage trucks and agricultural trucks to mention few.
4 Types of Commercial Auto Insurance Policies
In most states, there are regulations regarding the minimum coverage requirements for commercial motor vehicles but it is also important to find out what the requirements are in your state. However, the minimum requirements in your state might not provide the full coverage needed for your business.
The best insurance coverage for commercial vehicles is a comprehensive insurance policy. It covers for any financial costs as a result of accidents, theft, vandalism and damage of the motor vehicle. Other types of insurance products include-:
- Collision Coverage-: In the event that your vehicle hits another vehicle or collides with other stationery objects that lead to a damage of your vehicle, the insurance company would be responsible for repairing the vehicle.
- Third party insurance-: This type of policy is designed to cover for damages caused by your vehicles to other road users.
- Underinsured auto-insurance coverage-: In this case, an insurance coverage exists but is insufficient to cover for the costs of damage.
- Fleet insurance-: If you operate a kind of business with several cars in your fleet, fleet insurance is designed to cover your vehicles at the lowest prices possible.
Factors that determine the quotes you would get for your commercial motor vehicle insurance coverage include-:
- The type of vehicle and model
- Category of driving license the driver carries
- Number of passengers/ Cargo the vehicle carries
- Annual Mileage of the vehicle
- Age and experience of the drivers
Ten reasons why you wouldn’t regret getting commercial motor vehicle insurance coverage for your business vehicles include-:
10 Benefits of Getting Auto Insurance Coverage for your Business Vehicles
1. Save costs-: Every business owner want to reduce expenses as much as possible and I doubt that there are many businesses out there who keep some money lying around idle waiting to be spent on emergencies and even if you do, there are so many business and expansion opportunities you could be spending that on rather than paying insurance compensations.
When your business vehicle is guilty of causing an accident that leads to severe damage, it could cost your business a lot of money in the form of medical bills and compensations but if you’ve got insurance in place, all of that would be taken off your shoulder and transferred to the insurance company.
2. Reduce operation down-times-: Also, an accident involving your business vehicle could disrupt your business activities especially if you operate a kind of business where you rely a lot on the use of your vehicles.
Also, if you have limited number of vehicles for your business, when one gets damaged it would affect you as you may not be able to replace it immediately but having a good insurance policy would ensure that you get a replacement or repair fast enough so that your business can continue to operate smoothly without disturbance. Some insurance companies would even offer you a replacement vehicle until you can get your car fixed and running again.
3. Cover legal costs-: Insurance policy coverage for your commercial vehicles would also help to cover any legal costs in the event that your business is being sued as a result of an accident or damage caused by your vehicles.
4. Top Notch Maintenance-: Another reason why you need insurance coverage for your business vehicles is because of the excellent repair and maintenance services that you would get at no extra cost to you. If you are going to be repairing your vehicles yourself after an accident, you might want to reduce costs and go for cheap repair services but with your insurance coverage, you can opt for the best services which would lead to a prolonged life of your vehicle.
5. Compensation-: Sometimes, accidents may lead to death and in that case, you would be expected to compensate the family of the deceased which may not come cheap. Your insurance company can help to take this cost off you.
6. Compensation for Drivers-: Your drivers are a member of your staff and if anything fatal happens to them in the cause of driving your business vehicles, you would at least be expected to offer some kind of compensation which would also cost your company money but with insurance in place, the insurance company would take the burden off you.
7. Breakdown Assistance-: A lot of insurance companies offer breakdown assistance to their clients. This means that in the event that your business vehicle breaks down in the middle of nowhere with no help in sight, you can get help from your insurance company.
8. Installation of security features-: To further protect your commercial vehicle from theft and vandalism, most insurance companies would install some security features in your vehicle which is very beneficial for your protection.
9. Protects your personal car used for business-: You love baking and your friend hires you to bake some cupcakes for her son’s birthday on the way to deliver it, an accident occurs and then your insurance company insists that it wouldn’t pay claims because the vehicle is not for business. You can avoid such scenario by getting commercial motor vehicle insurance for your vehicle especially if you are an industrious person because you never know what could happen at any time.
10. Boosts confidence-: Lastly, getting insurance for your business vehicles helps to boost the confidence of your drivers when they are on the road and helps them to drive more carefully and stick to traffic rules and regulations.