Businesses that own or operate vehicles need commercial auto insurance. Policies may cover costs arising from accidents and other unexpected hazards, which may help companies avoid the financial risk that often accompanies these challenges. Take a closer look at some of the coverage that commercial auto policies typically offer.
Coverages Available in Commercial Auto Insurance
Although commercial auto policies vary, they commonly offer several types of protection, including:
- Liability coverage—May pay for injury and property damage costs of third parties (e.g., other drivers) when the business is liable for an accident. Liability coverage may also cover the business’s legal fees if it gets sued following an accident.
- Collision coverage—May cover vehicle repair costs if an insured vehicle collides with another vehicle or object. Collision insurance may also help replace a totaled vehicle.
- Comprehensive coverage—May pay to repair or replace an insured vehicle following hazards not covered by collision insurance, such as fires, theft, hail and vandalism.
- Uninsured motorist (UM) coverage—May provide bodily injury coverage if an uninsured driver hits a business’s vehicle and injures its driver and passengers. Some uninsured motorist coverage also covers damage to the company vehicle.
- Medical payments (Med Pay) coverage—May pay the medical costs of drivers and passengers traveling in a company car if they get injured in an accident.
Other available coverage may include:
- Underinsured motorist coverage
- Hired/non-owned auto liability coverage
- Roadside assistance coverage
- Rental reimbursement coverage
Talk to your agent about how different types of commercial auto coverage can apply in different scenarios. Doing so may help you decide which protection to include in your business’s policy. At the same time, keep in mind that you likely must carry at least a minimum level of coverage to meet your state’s mandatory auto insurance requirements.
Ready for Commercial Auto Insurance?
Getting the right commercial auto insurance may feel like a challenge. But Patriot Insurance Agencies may be able to make your search for coverage easier. To learn more, contact us or get a commercial auto insurance quote today.