Who Needs Commercial Auto InsuranceJust as your personal auto insurance policy covers you in the event of an accident when you are driving for personal reasons, commercial auto insurance covers you in the event of an accident when you are driving for business reasons. Commercial auto insurance also protects business owners when an employee is involved in an auto accident.
Who Needs Commercial Insurance?
If you own a business that employs drivers for delivery or transportation purposes―such as a shuttle service or food delivery business―you will likely be required by the state to carry a certain amount of commercial liability insurance. Even if your state does not require commercial liability insurance, purchasing a commercial auto insurance policy will protect your business from financial responsibility in the event of an auto accident.
If you are a commercial driver, you might also need commercial auto insurance. Begin by asking your employer about the extent of commercial insurance the business carries, and what types of coverage the policy includes. In addition to liability insurance, some commercial insurance policies include uninsured or underinsured motorist coverage, collision coverage, and comprehensive coverage.
Once you have a clear idea of the commercial coverage the business carries, you can informed decision regarding the purchase of additional insurance.
Advantages of Additional Liability Insurance
Many companies and CDL drivers opt to purchase more liability insurance than the minimum required. The reason for this is that in the event of a serious accident, the minimum is often not enough to cover all repair and medical expenses.
The amount of liability insurance you need depends on several factors―such as the nature of the business and driving extent―insurance professionals generally recommend carrying at least $500,000 liability coverage per accident.
Obtaining Commercial Insurance
Talk to your personal auto insurance provider regarding commercial insurance options. Some companies offer a discounted rate for additional insurance policies, particularly for drivers with clean driving records. You can also compare car insurance rates online, or by contacting the Insurance Department in your state.Compare Commercial Insurance Rates in 3 Steps
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