Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that exis...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Apr 23, 2020

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Things to Remember...

  • Commercial auto liability insurance offers financial protection for you and your company for vehicle-related accidents that results in personal injury or property damage
  • Most standard commercial auto insurance policies contain bodily injury liability, property damage liability, and collision or comprehensive coverage for any loss you may incur
  • Evaluate your company to determine the amount of coverage required to protect your business assets

Whether you have a single automobile for a one-man enterprise or many employees and a fleet of vehicles, most states have a regulation that makes automobile insurance mandatory.

All types of enterprises use cars, vans or trucks for executing a broad range of business activities, making deliveries, transporting products or equipment, or providing transportation for their employees.

Unexpected weather, road conditions, equipment failure or an uninsured driver can put your business at risk. Businesses require commercial auto insurance.

Personal automobile insurance does not provide coverage for commercial activities.

Commercial auto liability insurance offers financial protection for you and your company for vehicle-related accidents that results in personal injury or property damage.

Should a lawsuit find you or an employee at fault for the accident, your insurance covers the cost based on the type and limits of the coverage.

Most business owners appreciate the need to identify cheap commercial auto insurance at a premium that fit their budgets. Every enterprise has different requirements and will have to customize coverage to suit their needs.

Begin the project by finding out the minimum auto insurance requirement for your state and learning about the types of coverage available.

Find the best auto insurance coverage with our free comparison tool!

Understanding the Types of Basic Coverage

Most standard commercial auto insurance policies contain bodily injury liability, property damage liability, and collision or comprehensive coverage for any loss you may incur.

Following are explanations of the typical coverage found in business auto policies:

  • Bodily Injury Liability  Business owners must purchase liability insurance to provide financial protection for accidents that results in injury or death for which you or your employee has legal responsibility.
  • Property Damage Liability – If you or an employee cause damage the property of another person, this feature ensures the insurer pays out on claims.
  • Comprehensive Protection – Covering costs for the loss of or damage to your vehicle or equipment, such as theft, vandalism, flood, earthquakes or fire falls under this coverage.
  • Collision Coverage – This coverage provides cost protection to repair or replace the automobile and its equipment due to an accident.
  • Uninsured/Underinsured Motorist – Often, the other party may have the legal responsibility, but fails to carry insurance, have high enough policy limits to cover the costs, or the accident involves a hit-and-run. The clause ensures your business has the necessary protection.

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Common Optional Coverage

Many business owners find they require coverage that goes beyond the basic protection offered in most commercial automobile insurance policies. Following are the coverage frequently added by firms to enhance its financial protection:

  • Medical Payments – If a person suffers injuries from an accident, at the fault of you or an employee, it covers reasonable and necessary medical expenses for the victims. This coverage applies to people accidentally injured getting into or out or riding in your vehicle. It also covers funeral expenses in case of death.
  • Personal Injury Protection – You or a resident family member for may require coverage for medical, loss of wages, loss of services costs, or hospital rehabilitation expenses resulting from injuries sustained in an accident. The coverage may also offer death benefits and survivor benefits for the insured or a resident family member.
  • Additional Expenses – Many collision and comprehensive coverage require a provision to help absorb incidental costs, such as rental cars, food lodging, and other expenses.

Business owners may also want to consider employer’s non-ownership liability coverage to protect assets.

This coverage applies when the “named insured” uses a private vehicle, or the occasional use of a business vehicle by an employee, incurs liability because of an accident.

Many commercial auto companies also provide coverage for towing, roadside service, and new vehicle replacement costs.

In addition, evaluate your company to determine the amount of coverage required to protect your business assets. Qualifying for cheap automobile insurance requires you to intelligently interview insurers about the coverage and ask about available discounts.

Remember, the coverage you select, and the limits, affect the premium you pay.

Some Things You Can Do to Lower Your Premiums

Before you obtain auto insurance quotes and compare the different insurers, make sure you exhaust the available ways you can help yourself qualify for premium auto insurance discounts.

  • Try to locate the vehicles in a safe secure area with low auto theft crimes and park indoors.
  • Hire well-qualified drivers with a record of safe driving.
  • Purchase or lease domestic, mid-size sedans or safer vehicles.
  • Install safety features and anti-theft devices, such as seat-belts, airbags, alarm systems, and global positioning systems

Some commercial automobile insurers offer a discount for employees who have completed a defensive driving course.

The defensive driving discount may reduce your premium costs for these employees as much as ten percent for up to two or three years after completion of the course.

If you can afford to take on paying a larger part of the risk, consider making your commercial auto business insurance premium cheaper by selecting a larger deductible,

Summary

When searching for cheap insurance, obtain at least three to five quotes for general commercial auto insurance coverage. Gather the names, date of birth, driver’s license number, vehicle type, and make.

Insurers separate coverage depending on the number of vehicles and drivers the business insures.

Companies with multiple vehicles and drivers can purchase fleet insurance.

You can qualify your company for cheap commercial automobile insurance policy, and ensure you have adequate protection, should you become involved in an accident or experience a theft.

After taking the steps to put your company in the best position to receive the numerous discounts offered in the industry, you can shop the insurers for the best auto insurance rates.

Enter your zip below and save today!