Commercial auto insurance protects businesses when a business-owner’s car is in an accident, vandalized, stolen, or otherwise damaged. Commercial auto insurance offers five classes of coverage: Personal auto liability covers legal fees if a person sues for damage caused by your car. Professional property damage and bodily injury are two more categories of coverage offered by commercial auto insurance. The other main category of coverage is property damage, which covers damages to the physical structure of the business and any fixtures. This type of coverage will also cover the contents of the car.
As you compare quotes for commercial auto insurance, it is important to understand how limits on the policy affect your limits. Liability limits are measured in terms of maximum compensation. Actual cash value (ACV) is used to determine liability limits. Actual cash value coverage varies according to your state. To get an idea of how much your limits are, multiply the actual cash value coverage rate by the number of passengers in your vehicle.
Commercial car insurance companies use several factors in determining limits on commercial auto insurance. One factor is your driving records, as well as your geographical location. If you live in a high-risk area, your premium will be higher. If you frequently drive in unsafe areas, your premium will be higher still.
Another factor considered by many commercial auto insurance companies is the age and gender of the drivers. The younger drivers have lower rates. The statistics prove that male drivers are more responsible, and they also are more likely to have their vehicles stolen or vandalized. Female drivers, on the other hand, tend to have less driving record and therefore, have higher rates. There are several items that can affect rates, such as the model of the vehicle, the size of the vehicle, the coverage amount and the deductible.
Collision coverage is often the most expensive commercial auto insurance type. This coverage covers damages to the insured vehicle in an accident. If no one is injured, the vehicle will be covered completely. Collision covers both personal vehicles and company vehicles, and the total cost of repair usually does not exceed $600. To be able to get full collision coverage, the insured vehicle must meet the following criteria: it must be a car; it must be ten years old or more; it must be equipped with anti-lock brakes; it must have no factory defects; and it must be a right hand drive.
Bodily Injury is the next most costly type of policy. It covers medical costs for those involved in accidents with other drivers. Some Bodily Injuries policies have a deductible and may require the insured to pay the deductible from his/her own pocket up to a certain amount. Other commercial auto insurance limits vary by state. However, most limits set a limit of either two or three hundred dollars for bodily injury claims.
Roadside assistance is one of the other commercial auto insurance coverage types. These policies will pay for at least a tow, repairs, and gas expenses, if needed, on a claim. The maximum amount is determined by the state, so it’s important to know before purchasing this policy. The coverage can be expensive if it’s required, so drivers should carefully research their options.
There are many different types of commercial auto insurance coverage that can be purchased. Some states will limit the specific vehicles that the policy covers, so drivers need to check the specific policy before purchase. Some policies will only cover certain vehicles, while others will cover all vehicles on the policy. It’s important to be well informed about the different types of coverage available so that drivers will be able to choose the policy that best suits their needs.