How to Choose Between Different Types of Commercial Auto Insurance – The Easy Way

However, running a business that involves the use of automobiles can be, but it can be more difficult to have to deal with commercial auto insurance, especially if you don’t know which one has the right choice. One of the most difficult decisions you will make as an entrepreneur is choosing the right insurance policy that will be able to protect your business assets as well as your employees from unexpected financial losses and the threat of a lawsuit. The first step in choosing the right type of auto insurance is to understand the different types of commercial insurance coverage that are available.

Basically, commercial vehicle insurance divides vehicles into two main categories

  • The private passenger cars such as cars, vans, SUVs and small trucks

  • Trucks, trailers and tractors, including pickups, dump trucks, dry cargo, cooler, car transporters, tanks and so on.

There are two main categories of commercial auto insurance: general insurance and specialized commercial auto insurance.

General Commercial Auto Insurance includes six types of coverage

  1. Comprehensive coverage: This type of coverage occurs when a vehicle is vandalized or suffers damage caused by something other than another vehicle, such as an animal or a fallen tree.
  2. Collision insurance: This type of insurance covers damage to a vehicle that occurs when the vehicle is hit by another vehicle or object or the vehicle overturns. This type of insurance is urgently needed for vehicles with loans or leasing.
  3. Uninsured/uninsured drivers: This type of insurance covers the damages and medical costs incurred in the event of an accident caused by a motorist who is either uninsured or underinsured.
  4. Liability insurance: This type of insurance is generally required by most states. It occurs when you have caused an accident. Not only does it protect you from harm, but it also provides you with a legal defense in case the other party files a lawsuit against you. “Property damage liability” covers damage to the other party’s car or property, while “liability for bodily injury” includes injuries or deaths caused by the car accident.
  5. Medical Payment Coverage: This type of insurance covers medical expenses incurred by anyone in your vehicle as a result of a car accident, regardless of who is to blame for the accident.
  6. Protection against personal injury: This type of insurance covers injury-related costs incurred by you or your employees if they are involved in an accident, regardless of whose fault the accident is.

The Specialized Commercial Car Insurance is intended for companies that need the use of special vehicles in the performance of daily activities. Some common types of custom covers designed to protect specialty vehicles include catering truck coverage, landscaping vehicle coverage, and trade-related vehicle coverage.

Regardless of the type of business you operate or the type of motor vehicle you use, a commercial insurance policy can be customized to suit your specific needs.

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wendy encarnacion

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