Commercial Auto Insurance Buyers Guide

Why Commercial Auto Insurance?

Commercial Auto Insurance
2023 Commercial Auto Insurance Buyers Guide

Commercial Auto insurance is needed if you use your vehicle in a business capacity. Feeling perplexed, you think to yourself I have a personal auto policy, isn’t that good enough? Unfortunately, the answer is no, the personal auto policy excludes coverage if the vehicle is used for business.

Let’s say you are a realtor and you drive clients around to showings. If you were to get in a collision while showing the houses, your auto policy would not cover it. If you run a landscaping business and your vehicles are registered commercially, and you have a commercial plate, you need a commercial auto policy. A commercial auto policy will also cover your employees if they are driving or using vehicles for business, whether making deliveries, driving people to the airport or running errands on behalf of the company.

Commercial Auto Insurance- What does it cover?

Commercial Auto Insurance policies are very similar to personal auto policies in what they cover.
Those coverages may include but are not limited to:

  • Property damage liability
  • Liability for bodily injury to others
  • Optional bodily injury coverage for injuries that occur in a state outside your home state
  • Personal injury to you, your employed drivers or passengers with medical expenses
  • Collision coverage for costs associated with an accident, despite who is at fault
  • Comprehensive coverage for damage other than collision
  • Medical payments coverage for hospital expenses and care
  • Uninsured and underinsured motorist coverage
  • Non-owned auto coverage for when you or your employees drive a rented or borrowed vehicle
  • Loading and unloading liability
  • Substitution transportation when your commercial vehicle is being fixed, and you use a loaner from the repair shop
  • Towing and labor costs

How Do I Know If I Need a Commercial Auto Policy?

If you use your vehicle to carry equipment to a job site, transporting flammable or hazardous material, or delivering pizza or other goods, you should have a commercial policy in place.

Get a commercial auto policy, transporting people as a chauffeur, limousine or taxi service is not covered under a personal auto policy. This includes people who use their vehicles for Uber or Lyft. Not sure whether or not you need a commercial policy, discuss your situation with your agent. They will be able to decide if your vehicle use warrants a commercial policy. For bigger commercial autos such as tow trucks, cement trucks, construction vehicles, tractor trailers or semi-trucks, a commercial truck coverage is necessary. Commercial vehicle insurance is not only crucial for protecting your business financially, but it is mandatory by law.

Now What?

The best way to obtain coverage is to contact your agent and let them quote it for you. There are many options and coverages used in a commercial auto insurance policy that a licensed professional can explain to you in detail what they mean. You do not want to be stuck at claim thinking you are covered only to find out you are not.  

Call us for a free quote at 888 445 2793.

We serve the following states with Progressive commercial auto insurance:

  • Alaska
  • Arizona
  • California
  • Colorado
  • Florida
  • Georgia
  • Michigan
  • Missouri
  • Ohio
  • South Carolina
  • Texas
  • Utah
  • Virginia

Frequently Asked Questions About Commercial Auto Insurance

Q1: What is commercial auto insurance, and who needs it?

A1: Commercial auto insurance is a policy that provides coverage for vehicles used for business purposes. It’s essential for businesses that own or use vehicles in their operations, including delivery services, contractors, and companies with a fleet of vehicles.

Q2: What types of coverage are typically included in commercial auto insurance?

A2: Commercial auto insurance typically includes coverage for liability, collision, comprehensive, medical payments, and uninsured/underinsured motorist coverage. The specific coverage options can vary based on your business’s needs and state regulations.

Q3: How can I get a customized commercial auto insurance policy for my business?

A3: To get a customized commercial auto insurance policy, it’s best to work with an experienced insurance agent or broker who specializes in commercial insurance. They can assess your business’s unique needs and recommend a policy that provides the right coverage.

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Last Updated on by Camron Moss

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