Types Of Business Vehicle Insurance
If you own a business that uses a commercial vehicle or vehicles―such commercial trucks, delivery vans, or passenger transport vehicles―invest in a commercial auto insurance policy.
In addition to the minimum liability insurance required by the state, there are several optional types of business vehicle insurance, such as collision, comprehensive, and underinsured motorist coverage.
Commercial Liability Insurance Requirements
Commercial liability insurance requirements vary by state.
Be sure to check your state's requirements regarding commercial and business auto insurance. You can do so by contacting an auto insurance company that sells business vehicle insurance or by consulting your state's department of insurance website.
Also keep in mind that―just as is the case with insuring regular passenger vehicles―it's advisable to purchase more insurance than your state requires. Consider the net worth of your personal and business assets, and note that insurance professionals recommend carrying no less than 100/300/100 split liability coverage.
Collision Coverage for Commercial Vehicles
The purpose of collision insurance is to cover the repair expenses for damages accrued in a collision-specific accident.
For example, if your commercial vehicle collides with another vehicle, mailbox, road sign, or various other stationary object, your collision insurance will cover the cost to repair the vehicle.
Comprehensive Insurance for Commercial Vehicles
The purpose of comprehensive insurance, on the other hand, is to cover the cost of damages due to theft, vandalism, natural disasters, and weather conditions.
If your commercial vehicles travel through heavily populated metropolitan areas, or through areas with harsh weather conditions, you might consider purchasing comprehensive insurance coverage.
Underinsured and Uninsured Motorist Coverage for Commercial Vehicles
Insurance Options for Fleet Owners
If you own a fleet of vehicles―typically 25 vehicles or more―you might have the option of substituting self insurance or a surety bond for traditional car insurance. In the instance of self insurance, you must set aside enough money for auto related expenses to meet the minimum liability requirements in your state. You can also purchase a surety bond for this amount, or submit a cash deposit for this amount to the DMV.
Not every state accepts these alternatives to traditional car insurance. Contact your state DMV directly for more information regarding surety bonds, self insurance, and cash deposit options for fleet vehicles.