Posted on May 17, 2014
All commercial autos in the United States must have commercial automobile insurance. Commercial auto liability insurance provides coverage for medical expenses of injured parties as well as payment for damages to the property of others when an insured causes an accident.
Personal and commercial automobile insurance is for the most part the same except for a few significant differences:
Ownership and use of vehicle determines whether a personal or commercial auto insurance policy should be used for businesses. If a vehicle is owned by the business, driven by the business owner or employees and is used for business transport or deliveries, then a commercial automobile insurance policy should be purchased.
Business owners need to make sure that their business name is listed as the named insured on the auto policy. Employees using company vehicles should be properly trained and have good motor vehicle driving records.
Commercial automobile insurance premiums can be affected by many factors including:
Commercial auto insurance pays for bodily injury and property damage liability claims, uninsured and underinsured motorist coverage as well as medical payments. Each state has different laws concerning the type of coverage and amounts of liability needed to operate commercial vehicles. But no matter where a business is located, the importance of protecting company assets by purchasing commercial automobile insurance for business use of vehicles is imperative to provide the best insurance protection available.