How to Choose Between Commercial Auto Insurance Types – The Simple Way

Running a company that uses cars for transportation can be challenging, but dealing with commercial auto insurance can be even more challenging, particularly if you don’t know which one to pick. Selecting an insurance policy that will protect your company’s assets and your employees from unforeseen financial loss and the threat of legal action is one of the most difficult decisions you will have to make as a business owner. Understanding the various Commercial Insurance coverage options is the first step in selecting the proper type of Auto Insurance.

Basically, Commercial Auto Insurance break vehicles down into two major categories

  • The private passenger -type automobiles such as cars, vans, SUVs, and small trucks
  • trucks, trailers, and tractors, such as pickups, dump trucks, dry freight, refrigerator boxes, auto haulers, tanks, and so forth.

Commercial auto insurance falls into two main categories: general insurance and specialized commercial auto insurance.

The General Commercial Auto Insurance comprises of six types of coverage

  1. Comprehensive coverage: When a car is damaged by something other than another car, such as an animal or a fallen tree, this type of insurance coverage kicks in.
  2. Collision insurance: this type of insurance covers damages to a vehicle which are sustained when the vehicle gets hit by another vehicle or object or the vehicle overturns. For cars with loans or leases, this kind of insurance is crucially necessary.
  3. Uninsured/underinsured motorist: When a driver who is either uninsured or underinsured causes an accident, this kind of insurance pays for the damages and medical expenses that result from it.
  4. Liability insurance: Most states typically require this kind of insurance. When you cause an accident, it becomes active. In addition to shielding you from financial loss, it also gives you a legal defense in the event that the other party decides to sue you. “Property damage liability” covers damages to the car or property of the other party while “bodily injury liability” covers injuries or death caused by the car accident.
  5. Medical payment coverage: Regardless of who caused the car accident, this type of insurance will pay for any medical expenses incurred by anyone riding in your car.
  6. Personal injury protection: This kind of insurance pays for injury-related expenses incurred by you or your staff as a result of an accident, regardless of who was at fault for the collision.

the st……………….. Coverage for catering trucks, landscaping vehicles, and trade-related vehicle coverage are some examples of common custom coverages created to safeguard specialty vehicles.

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