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The Basics Of Commercial Auto Insurance

Commercial Auto Insurance is specifically designed to cover vehicles under commercial use of a business.

The Basics Of Commercial Auto Insurance

Commercial Auto Insurance is specifically designed to cover vehicles under commercial use of a business. If you want your business vehicles covered then those vehicles need to be under the coverage of a commercial auto insurance policy.

Commercial insurance protected vehicles on city road.

What is Commercial Auto Insurance?

Although Commercial Auto Insurance is akin to personal auto insurance in many ways, it's specifically designed to cover vehicles under commercial use of a business. Unlike personal auto or car insurance, commercial auto insurance doesn't cover vehicles that are used domestically.

Therefore, if you want to cover the vehicles you buy or use for your business, you need a commercial auto insurance policy. Remember that a commercial insurance policy would also be necessary if you use your personal vehicle for business or commercial use.

While personal car insurance covers only cars that are of your personal use, commercial auto insurance covers a wide range of vehicles, including:

o Business or Office cars
o Work vans
o Box Trucks
o Food trucks
o Service utility trucks
o Forklifts
o Dump Trucks


Who Needs Commercial Auto Insurance?
Any business or company that has vehicles to operate commercially needs commercial auto insurance.

However, if you're self-employed or running a business in a sole proprietorship model, you need to consult with an insurance expert to figure out whether you need commercial auto insurance or not.

• What Does Commercial Auto Insurance Cover?
Commercial auto insurance provides all the coverages of personal auto insurance plus some additional options specific for businesses.


A typical commercial auto insurance policy can provide you with the following type of coverages:

• Comprehensive coverage
Comprehensive coverage reimburses you for repairing or replacement costs if your insured business vehicle gets stolen or damaged due to a covered peril except for collisions, such as vandalism, fire, smoke, weather conditions, auto accident, and hail.

• Collision Coverage
Collision coverage pays for the damages to your insured business vehicle after it collides with another vehicle or a solid, stationary object like a fence.

• Rental Reimbursement
Reimburses you for the expenses of hiring a rental vehicle (up to certain limits) if your insured business vehicle is damaged after being involved in an auto accident.

• Liability Coverage
Liability coverage covers you from any lawsuits or claims filed against you regarding a third-party bodily injury or property damage caused by your insured business vehicle in an accident when you're at fault. It also helps you pay the legal expenses to defend your case in court.

• UIM/UM Motorist Coverage
This coverage protects you against the losses you sustain as a result of an accident caused by an uninsured or underinsured driver who doesn't carry enough coverage to pay for your expenses. UIM/UM Motorist coverage also pays for the lost wages if any of the passengers of your insured business car gets injured.

• PIP (Personal Injury Protection) Coverage
PIP coverage reimburses you for the medical bills and treatment expenses if you or your passengers in your insured business vehicle sustain injuries due to an accident.

Need help navigating your specific business insurance needs?

Call Davila & DeFusco Insurance
(978) 241-7950

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