770-723-9901
info@insurecstore.com
770-723-9901
info@insurecstore.com

What is Commercial Auto Insurance?

Commercial auto insurance protects vehicles used for business purposes, covering accidents, property damage, and medical payments. It differs from personal auto insurance by providing coverage customized for business use, including liability, collision, and uninsured motorist protection. Your personal auto insurance cannot apply to your commercial vehicles, necessitating this policy. Whether you own delivery vans or trucks, this policy safeguards your business against financial losses.

What is Included in a Commercial Auto Insurance Policy?

A commercial auto insurance policy typically includes liability coverage for property damage and bodily injuries caused by business vehicles. It also comprises collision and comprehensive coverage that covers damages to your vehicles, medical payments for injuries, and uninsured/underinsured motorist protection. There are also additional options offering broader production for your business vehicles. Here is a detailed list of coverage options that are typically a part of such a policy:

Liability Coverage

Covers third-party property damage and injuries caused by your business vehicle during operations and ensures compliance with legal requirements.

Collision Coverage

Pays for the repair or replacement of your business vehicle following an accident, regardless of fault, keeping your business operations uninterrupted.

Comprehensive Coverage

Protects your vehicles from theft, vandalism, natural disasters, and non-collision damages offering complete security for your business assets.

Medical Payments Coverage

Covers medical expenses for you and your passengers in a business vehicle accident, ensuring access to necessary treatment without financial strain.

Uninsured/Underinsured Motorist Coverage

Provides protection against losses caused by drivers with insufficient or no insurance covering damage to your business vehicles and injury costs.

Physical Damage to Vehicles

Covers medical expenses for you and your passengers in a business vehicle accident, ensuring access to necessary treatment without financial strain.

Hired and Non-Owned Auto Coverage

Extends liability protection to rented vehicles or employee-owned vehicles used for business purposes, reducing potential risks for your operations.

Personal Injury Protection (PIP)

Offers coverage for medical expenses, lost wages, and other accident-related costs for you and/or your passengers, regardless of who is at fault.

Cargo Coverage

Covers damage or loss to goods, equipment, or materials transported in your business vehicle, protecting your financial investments in transit.

Roadside Assistance

Provides towing, emergency fuel delivery, and minor repairs to keep your business vehicles operational, minimizing downtime during unexpected events.

What is Not Covered Under Commercial Auto Insurance?

  • Personal Use of Company Vehicles

  • Employee Injuries (covered under workers' compensation)

  • Damage to Personal Property

  • Wear and Tear or Mechanical Breakdown

  • Damage from Racing or Illegal Activities

  • Damage to Non-Owned Vehicles or Property

  • Liability for Uninsured or Underinsured Drivers

  • Damage from Intentional Acts

  • Off-Road Accidents

  • Injuries or Damage While Driving Under the Influence of Drugs or Alcohol

How Much Does Commercial Auto Insurance Cost?

The cost of commercial auto insurance varies based on factors like business size, industry, and coverage needs. For example, small businesses pay an average of $67 monthly for commercial property insurance. It is essential to obtain personalized quotes to determine the exact cost for your business.

Who Needs Commercial Auto Insurance?

Commercial auto insurance is necessary for businesses that use vehicles for operations, like delivery services, contractors, or rideshare companies. It provides coverage for accidents, property damage, and injuries involving business vehicles. Whether transporting goods or providing services, this insurance ensures financial protection against unexpected accidents or damages. Here is a list of groups that may benefit from commercial auto insurance, keeping their business safe and compliant:

  • Business Owners with Company Vehicles

  • Delivery and Courier Services

  • Transportation and Logistics Companies

  • Construction Companies

  • Landscaping and Lawn Care Businesses

  • Real Estate Agents and Brokers

  • Service Contractors (Plumbers, Electricians, etc.)

  • Franchise Owners with Company Vehicles

  • Food Truck and Catering Businesses

  • Towing and Roadside Assistance Companies

  • Taxi and Ride-Sharing Services

  • Sales Representatives with Company Cars

  • Moving and Storage Companies

  • Insurance Agents with Company Vehicles

  • Wholesale Distributors

Get a Free Commercial Auto Insurance Quote

Are you looking for a free commercial auto insurance quote? Insure C-Store is here to help! Enter your full name and phone number and select your preferred business property before pressing submit. You will be led to a simple form asking about personal and property details, location address, current insurance provider, etc. Once you complete and submit the form, one of our agents will contact you.

Don’t overthink it. Contact us today for your first quote, or visit our office with any questions!

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Frequently Asked Commercial Auto Insurance Questions

Ans) Yes, commercial auto insurance is generally more expensive than personal auto insurance due to the higher risk associated with business operations. Factors such as the type of vehicle, the business’s driving habits, the number of vehicles in your fleet, and the scope of coverage can all impact the premium. Businesses that use vehicles for deliveries or transport, for example, will likely face higher rates.

Ans) You need commercial auto insurance if your business uses vehicles for work purposes, such as transporting goods, providing services, or making deliveries. This coverage is also necessary if employees drive company cars or if the vehicle is titled under the business. It’s important to have coverage in place before driving any vehicle for business use to ensure legal compliance and protection.

Ans) Yes, businesses can typically write off commercial auto insurance premiums as a business expense, provided the vehicle is used for business purposes. To qualify for a deduction, the vehicle must be used primarily for work, and records of business use must be kept for tax purposes. Consult with a tax professional to ensure proper deductions and compliance with IRS guidelines.

Ans) If your business owns, leases, or uses vehicles for business purposes, you are required by law to have commercial auto insurance. Personal auto insurance policies generally don't cover vehicles used for business activities. This coverage protects against liability, damage, and loss related to business operations involving vehicles.

Ans) To lower commercial auto insurance costs, consider raising your deductible, maintaining a clean driving record, and using vehicles with higher safety ratings. Additionally, bundling policies, choosing limited coverage options for older vehicles, and implementing safety programs for employees can help reduce premiums. Working with an insurance agent can also help identify cost-saving opportunities.