Things to Know About Commercial Auto Insurance
Commercial auto insurance is essential for businesses that use vehicles as part of their operations. Whether you own a single delivery van or manage a large fleet, understanding how this coverage works can help protect your business from significant financial risk. RMH Insurance Group provides the same in Syracuse, Leesburg, Milford, Warsaw, IN, Middlebury, Elkhart and surrounding areas.
- First, commercial auto insurance differs from personal auto insurance. Personal policies typically exclude business use, meaning claims may be denied if a vehicle is used for work purposes. Commercial policies are designed to cover vehicles used for transporting goods, equipment, or people, and they account for higher risks associated with business driving.
- Coverage usually includes several key components. Liability coverage pays for bodily injury and property damage caused to others if your driver is at fault in an accident. Collision coverage helps repair or replace your vehicle after an accident, regardless of fault. Comprehensive coverage protects against non-collision events such as theft, vandalism, fire, or weather damage. Some policies also offer medical payments or uninsured/underinsured motorist coverage.
- Another important factor is who and what is covered. Commercial auto insurance can cover employees who drive company vehicles and, in some cases, employees who use their personal vehicles for work-related tasks. Policies can be customized to include owned, leased, or hired vehicles, as well as non-owned vehicles used for business purposes.
- Premiums are influenced by several factors, including the type of vehicles, how they are used, driving records of employees, mileage, and the industry you operate in. For example, a construction company with heavy trucks may pay more than a consulting firm using sedans for client visits.
- Compliance with state laws is also critical. Most states require minimum liability limits for commercial vehicles, and failing to carry proper coverage can result in fines, license suspension, or legal liability.
- Finally, reviewing your policy regularly is key. As your business grows or changes—adding vehicles, drivers, or services—your insurance needs may change as well. Working with an experienced insurance agent can help ensure your coverage remains adequate and cost-effective.
Understanding commercial auto insurance helps safeguard your vehicles, employees, and business operations. Interested in discussing this further? Call or email us anytime!