What is Commercial Auto Insurance?
This insurance is a form of auto insurance for commercial businesses. The purpose of this insurance is to protect business that own a fleet of vehicles by covering all of these vehicles under one policy. These policies are often designed specifically for the individual business, and the insurance company will work with the business to determine fair policy rates.
Who is it For?
Commercial auto is for any business with a fleet of vehicles. A fleet of vehicles could be two cars, or it could be a huge shipping company with several hundred big rigs. Essentially, this insurance is for any business with any amount of vehicles that they plan on using for business regularly and will keep for an extended period of time. This coverage is vital for any company that does not already have a comprehensive policy covering their vehicles.
How does it Work?
This type of insurance is paid for through annual, semi-annual, or monthly premiums, depending on the policy specifications. When a claim is made for any injuries suffered or damage that has been inflicted on or by the vehicle, a claim is made by the company. Most claims are paid either directly to the party that the company is liable to or are reimbursed by the insurance company to the policyholder in a lump sum at the end of the year.
What is all Covered?
Coverage for this insurance varies, but most commercial auto policies cover the same items that are covered under a normal auto policy. Comprehensive coverage and collision coverage can be provided to help protect the company from expenses due to damage, theft, or accidents. Property damage liability coverage can be added in order to pay for any damages caused by the vehicle itself. Bodily injury and personal injury coverage is generally used under these policies, and it can be used to help pay for monetary damages incurred due to people getting hurt because of the automobile, as well as to pay any court costs if the company gets sued. Uninsured and underinsured motorist coverage can also be provided in order to round out the policy.