A commercial auto insurance policy is made up of a number of separate insurance policies. Law requires businesses to obtain a minimum amount of commercial auto insurance coverage, but those interested in protection from lawsuits or major repair bills should consider more insurance than what is required. Commercial auto insurance is sometimes referred to as business auto insurance.
A minimum amount of insurance coverage is required to drive in California and most other states. Bodily injury liability coverage of $15,000 per person/ $30,000 per accident and property damage liability coverage of $5,000 per accident are the minimum requirements in California. For extra protection from lawsuits and due to the rising costs of health care and auto repairs, extra insurance coverage can be a wise purchase.
Minimum commercial auto insurance coverage may not fully cover you in the case of a serious accident, which is why it’s often a good idea to consider purchasing more than is required.
The core of any commercial auto insurance policy is liability coverage and it is required in California and most other states. In the case of an accident, if you are found to be at fault, your liability insurance will pay for damages to third parties in the accident, including legal bills. Medical bills and lost wages are included in bodily injury expenses. Commercial auto insurance may help reduce exposure to a lawsuit resulting from an auto accident.
Collision & Comprehensive Coverages
Collision coverage will cover the cost of repairing your vehicle if you cause an accident. The insurance company will usually pay you the actual cash value of your car, which may not necessarily equal the car’s replacement cost. Collision coverage is often the most expensive component of auto insurance. You can keep premium costs down by choosing a higher deductible, but in the case of an accident, you must pay the deductible amount before the insurance company covers the balance of the claim. In a case in which repairs cost more than what the car is worth, the insurance company will often “total” the car.
Damages to your vehicle not caused by an accident (theft, fire, vandalism, natural disasters, etc.) are covered by comprehensive insurance coverage. Your carrier will cover the value of the car at the time of the damage under standard comprehensive auto insurance coverage.
It is helpful to have a rough idea of your vehicle’s value because auto insurance companies will not pay you more than your car’s value. The Kelley Blue Book and the National Automobile Dealers Association’s Official Used Car Guide are the most commonly referenced publications for car values. It is wise to purchase comprehensive coverage only if your car is worth more than you are paying for auto insurance coverage.
In the case of an accident, MedPay will cover medical expenses for you and your passengers. These expenses can arise from accidents while you are driving your car, someone else’s car (with their permission), and injuries you or your family members incur when you are pedestrians. MedPay will cover expenses no matter who is at fault, but if another party is liable, your auto insurance company may seek to recover the expenses from the responsible party.
Uninsured/Underinsured Motorists Coverages
if a hit-and-run driver or someone who does not have insurance strikes you, uninsured motorists (UM) auto insurance coverage pays for your medical expenses. UM coverage is required in many states. If the driver who hits you causes more damage than his liability coverage will cover, UM coverage will kick in. UM coverage will also pay for property damage in some states. Auto insurance policies that include UM coverage are recommended, considering the large number of uninsured motorists nationally. It costs less than $40 per year for $100,000 of coverage, on average, and will cover anything not covered by medical insurance.
Contractors and construction professional rely on their autos to get the job done. Whether you’ve got a personal vehicle that doubles as your work truck, or an entire fleet of autos that your construction business owns, contractor commercial auto can protect your vehicles from the risks of the road.
Do You Need Commercial Auto?
Contractors who use their personal vehicles for work may assume their personal auto policies will cover any accidents, damage, or injuries on the road. But if you use your vehicle primarily for work purposes, you may be left with inadequate coverage in the event of an accident.
If you can answer yes to any of these questions, you may need to consider commercial auto coverage:
- Are there any vehicles owned or leased by your business?
- Are there any vehicles titled or registered to your business?
- Do you use your vehicle as your primary work vehicle?
- Do any employees or non-listed drivers use your vehicle on a regular basis?
- Do any of your vehicles have ladder racks, permanent toolboxes, or other equipment installed to support your business activities?
The Right Commercial Auto Coverage at the Right Price
We can help you select the perfect amount of coverage for your hard-working vehicles at rates you and your business can afford. Choose from:
- Auto liability
- Collision coverage
- Comprehensive coverage
- Medical payments
- Uninsured and underinsured motorist coverage
- Specified peril
- Coverage for employees using their vehicle for your business
- Coverage for autos your business owns, leases, or rents
Let us find you the perfect solution to cover your work vehicles today, from the toolbox on your favorite truck to the very last auto in your company’s fleet.
McGovern Insurance is an experienced insurance agency that can help with your commercial auto insurance policy. Call us at (650) 593-8216.