Commercial Auto Insurance

Commercial Auto Insurance Policies

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This is an insurance policy that is underwritten specifically for commercial vehicles. Some examples of commercial automobiles that qualify for such a plan include trucks, RVs, buses and transit vans. The insurance offers compensation for a variety of potential situations ranging from accidents on highways to natural disasters and vandalism.

Who it is for:

Commercial auto insurance is typically purchased by a business, organization or government agency that owns some type of commercial vehicle. This insurance plan usually covers automobiles that exceed a minimum Gross Vehicle Weight Rating that is used for classification purposes by motor vehicle departments. In some cases, passenger cars that are used exclusively for commercial purposes can also be protected by this form of auto insurance.

How it works:

The entity that owns a commercial vehicle must pay for all premiums and other expenses for this insurance policy. In many cases, business owners pick up the bills on a monthly basis even though they rarely or never actually drive the insured vehicles. Insurance for commercial vehicles can be paid for as a single sum to cover a policy that's valid for an entire year or longer. Discounts are often applied for commercial vehicle owners who prepay ahead of time instead of making monthly installments.

Different types of coverage in existence:

Every commercial vehicle that's on the road must have minimum liability coverage. This is a clause that focuses on bodily injuries and property damage that's caused by the insured commercial vehicle. Collision insurance is designed to give compensation for exterior repairs that have to be done as a result of a crash. Comprehensive insurance for commercial automobiles pays for damage that is done by anything other than a crash. Roadside assistance is another popular insurance policy that pays for expenses involving idle engines, flat tires and various mechanical problems.

Major Benefits:

Insurance for commercial vehicles can save a lot of money on costly automotive repairs and restorations. Additionally, this insurance plan pays for hefty medical costs and legal expenses that are associated with serious accidents involving multiple individuals.


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