Commercial vehicle insurance is an insurance policy that covers vehicles that are owned and used by a business. It helps to protect your business against liability that might arise due to accidents. It can also be used to pay compensation to occupants of the vehicle that might have been injured during an accident. So, it is an important investment, guaranteeing monetary compensation against heavy repairs. Read on to know more about commercial vehicle insurance.
What are the types of commercial vehicle insurance coverage?
This type of insurance can cover physical damage such as collision loss; this includes damage caused during vehicular accidents and comprehensive loss, which is damage caused due to weather, theft, and non-collision-related causes.
Liability coverage includes bodily injury coverage to the driver of the opposing vehicle and property damage coverage for damage caused to someone else’s property due to the fault of your driver.
Depending on the policy you choose, you might also be able to get rental reimbursement up to a certain limit if your insured vehicle is damaged in an accident. You could also get funeral or medical expenses for occupants of your insured business vehicle irrespective of who caused the accident.
Do you need commercial vehicle insurance?
Commercial vehicle insurance is required in most states of the country. Also, if you own a business that transports or moves people and goods across state lines, you must have commercial vehicle insurance. For large vehicles, such as trucks, you might need a commercial truck insurance policy. So, you need commercial vehicle insurance if your vehicle is used for business purposes, has a commercial license plate, or is registered as a commercial vehicle.
You also need this type of insurance if you or your employees use a vehicle for business-related tasks such as visiting a client or making on-site visits.
Also, if you use your vehicle to deliver food, transport flammable or hazardous substances, or tow vehicles, you must get additional coverage.
What happens if you don’t have commercial vehicle insurance?
Supposing a person or someone else’s property is damaged by the driver of your business vehicle, they can bring a lawsuit or file a claim. Depending on your coverage, your insurance will cover the cost and pay the damages. However, you or your business will need to cover any damages that are above the limit of the policy. In case of a lawsuit, your insurance will cover the legal costs.
How to get commercial vehicle insurance?
There are many independent insurance agents that sell commercial vehicle insurance. Once they analyze and review your business operations and vehicle use, they will recommend the coverage that is best suited for your organization.
What is the cost of commercial vehicle insurance?
The cost of commercial vehicle insurance depends on the following factors:
- Size of the business
- Number of vehicles to be insured
- Number of employees using the insured vehicle
- Business and driving risks
Are the premiums tax-deductible?
Sometimes the premiums are tax-deductible. However, it might be best to check with your tax consultant.
Which companies offer commercial vehicle insurance?
The following companies offer commercial vehicle insurance. You can contact them for a quote or to answer any queries you may have about this type of insurance.
Progressive
The policies offered by this company are best suited for businesses that operate trucks. You can also customize your policy and enjoy the many discounts they offer.
Nationwide
Among the best auto insurance providers, they have an A+ rating
Farmers
A top insurance provider is best suited for contractors as it also covers the tools that are transported inside the vehicle.
Geico
This provider is good for businesses that transport people, such as limo services or taxis.
Find a company or an agent for a quote. You can also check reviews of the insurance provider you choose to ensure that you get the best price.
