Who Is Insured Under A Commerical Auto Insurance Policy
As a business owner, you would be listed on the commercial auto insurance policy as the primary insured. Any employees and drivers you have working for you will be covered by the policyÃ¢â¬â¢s permissive use. Permissive use enables anyone with permission to drive and operate one of your vehicles. Employees will always have the ok as the workforce, so they will always be covered by permissive use rather than having them individually named in the policy. Be sure to read your commercial auto policy closely for any stipulations specific to the provider regarding permissive use.Ã
Better Control Over Claims
When an accident occurs, our auto liability claims team puts its experience to work. We help manage losses and downtime so your business and drivers can move forward with the following experts and resources:
- Auto liability claims professionals, with expertise in both commercial and personal auto coverage, that are prepared to resolve claims from low to high complexity
- General damages and medical pricing tools to help shorten evaluation time
- An extensive counsel panel for litigation management
- Advanced analytics to review legal bills
- Virtual appraisals and access to our extensive guaranteed repair network of shops so your company can quickly get vehicles back in operation
Equipped with specialized insights, advanced technical tools, ongoing training, and in-depth knowledge of state-specific regulations, our people are empowered to do their best work for you.
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What’s Covered By A Commercial Auto Insurance Policy
If you have commercial auto insurance for your business, youll be protected from the financial burdens that come from accidents, like vehicle repairs and medical bills. Remember, a covered claim will be subject to your policy’s deductibles and limits. Additionally, coverage availability and requirements vary by state.
Here are some common commercial auto insurance coverages to help you get started:
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Best Customer Service: State Farm
With top customer satisfaction ratings, State Farm is our pick for the best customer service in commercial car insurance.
ENOL and rideshare coverage offered
Available in all 50 states
Need to work with agent
Limited policy options
Earning our top nod for commercial insurance customer service is State Farm. This carrier not only boasts second-place in the J.D. Power 2021 U.S. Small Commercial Insurance Study. State Farm had a well-below-average complaint index through the National Association of Insurance Commissioners in 2018 but in 2019 it rose to match the average and then shot up above in 2020.
Commercial insurance options include liability , medical payments, comprehensive, and collision coverage. They do offer additional coverage features such as employers non-owned car liability , which extends policy coverage to employees own vehicles when driven for business purposes. This carrier also offers rideshare coverage options on personal auto insurance policies, saving many drivers from paying the higher premiums of a commercial policy.
Online quotes are not offered through State Farm, so youll need to work with an agent to get a quote and purchase coverage. Claims can be filed online, over the phone, or through their award-winning mobile app.
To learn more about this carrier, you can read our full State Farm Auto Insurance Review.
Commercial Auto Vs Personal Auto Insurance
A common mistake people make when looking into commercial auto insurance is assuming their personal auto insurance will cover them. It is easy to see how they could make this assumption.
On paper, commercial auto insurance and personal auto insurance are similar, save for a couple of policy add-ons. Where they differ is with insurance coverage limits.
Commercial insurance has considerably higher coverage limits than a personal policy. They also include coverage specific to your industry and offer seasonal coverage if your business only uses its vehicles a few times a year. Commercial vehicle insurance can be tailored to your business and its needs.
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Commercial Auto Insurance Discounts
Depending on your insurance provider, there may be some discounts available to you. Some companies offer a commercial driverâs license discount where new customers can save on their premiums along with a business experience discount for business auto customers who have been established for a certain number of years.
Learn about the variety of discounts customers should be on the lookout for. Usually, insurance providers’ websites list them, but if they do not, donât forget to ask your insurance agent about them. Insurance agents are experts in the field and will be of very valuable service when it comes to something like this.
Learn about possible discounts for the easiest ways to save money for commercial customers.
What Doesnt Business Auto Insurance Cover
Commercial auto insurance can cover most driving incidents and vehicles for the majority of businesses. However, there are some gray areas and excluded situations that buyers should be aware of.
One obvious exclusion is for damages or injuries that are intentional. If someone covered on the policy uses a covered vehicle to intentionally harm another person or to damage property, the insurance company is not liable for damages and expenses.
Property of Others
Another very common exclusion standard to commercial auto insurance policies is property belonging to others that is in the possession or care of a covered individual. If a covered person is driving a car belonging to someone who isnt on the policy, it will not be covered. The same is true for any equipment, tool, or personal items belonging to others. Some insurers will offer coverage extensions to protect the property and automobiles of others while they are in the possession of an insured.
Another common situation that is not covered by commercial auto insurance is an accident that occurs when an employee is using their personal vehicle for business. This isnt exactly an exclusion because privately owned vehicles are not the responsibility of commercial auto insurance. As we mentioned above, it is possible to extend commercial auto coverage to include this with hired and non-owned auto coverage, but that wont be included unless requested by the buyer.
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Are Items That I Transport With My Insured Commerical Vehicle Covered By This Policy
With all these protections in mind, commercial drivers often ask if the tools and items they haul around or store in the work vehicle are also covered by the commercial auto policy. The simple answer is no the auto policy itself will not cover such things unless they are attached or part of the insured vehicle in some way. If they are loose tools or an item meant for delivery, then they would be covered by your business ownerÃ¢â¬â¢s policy that you carry for liability purposes for the business as a whole. Considering that those tools or delivery items are company assets, they would be covered by such insurance.Ã
Get A Quote For Commercial Automobile Insurance In Ma
Get in touch with the insurance professionals at LoPriore Insurance Agency to learn more about commercial insurance and how it could benefit you and your business. LoPriore Insurance Agency is proud to be a Trusted Choice agent. We make it our mission to provide personalized services at competitive prices to our clients.
Our team of dedicated and friendly professionals will spend time with you to learn more about what you need from us. When we get a better understanding of what you need, we can give you an insurance policy that covers those needs. We believe you shouldnt pay for more coverage than you need. Thats why we tailor our services to you.
LoPriore offers auto liability insurance, which helps cover the costs associated with property damage and physical injury caused by accidents involving company cars and hired drivers. We also provide collision coverage, comprehensive coverage, and coverage for medical payments depending on your needs.
No business or business vehicle is too big or too small for us. We take care of your vehicles, no matter your industry. Call our office today or send us an email to learn more about what our insurance policies can do for you and your Massachusetts business.
Have any Question? Ask us anything, wed love to answer!
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Learn More About Commercial Auto Insurance In Massachusetts
A commercial auto insurance policy can protect you from significant financial loss that could destroy your business. To learn more about customized commercial auto insurance that fits your lifestyle and budget, get in touch today. Our experienced agents are happy to answer your questions or provide you with a quick quote for the insurance policy you need.
Get A Commercial Truck Insurance Quote Today
Whether you need commercial truck insurance or a combination of coverages, our team of in-house specialists can help you find the commercial insurance youre looking for.
Start a quote online or give us a call at: .
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*Smart Haul not available in all states. See full terms and conditions and privacy statement for more details on how Progressive uses driving data. Savings not guaranteed. At renewal, driving data could increase or decrease premiums.
Commercial auto policies are underwritten by Progressive Casualty Ins. Co. & affiliates.
No. 1 truck insurer from SNL Financial’s 2019 national written premium data. Truck is classified as all For Hire Specialty vehicles, all For Hire Transportation vehicles, and all vehicles with a Gross Vehicle Weight greater than 16k for Tow, Contractors, and Business Auto.
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Coverage subject to policy terms and conditions.
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How Is Commercial Auto Insurance Different From Personal Auto Insurance
Commercial auto insurance is intended specifically for vehicles used for business purposes. Because of the extra risks associated with business use, commercial car insurance is generally more expensive than a comparable personal auto policy.
Youll find business-specific coverage options and sometimes discounts for using a telematics program to track your fleet of vehicles.
Reduce Premiums With Valuable Discounts
Coverage and discount descriptions are summaries. Individual rates and savings, if any, will vary. DynamicDrive is a telematics app that provides individualized driving feedback, so you can better understand your driving habits and promote safe driving. The app can detect and score braking, speeding, phone handling and time of day. DynamicDrive users in certain states are eligible for a discount. All coverages, discounts, features, benefits, and pay plans may vary by state and insurer and are subject to availability, eligibility, terms, conditions and exclusions. Insurance underwritten by individual carriers in the National General Group, Winston-Salem, NC.
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Choose The Hartford For Commercial Car Insurance
Unique, Customized Coverages
Superior Commercial Auto Insurance Claims
Get Extra Business Auto Protection at No Additional Cost
- Coverage for electronic devices
- Gap coverage for leased and loaned vehicles**
- An additional 10% actual cost value, up to $2,500, for total loss vehicles replaced with a hybrid, electric or natural gas vehicle
What Is A Combined Single Limit
Unlike personal auto policies that have separate limits for bodily injury and property damage liability , the BACF commonly has a Combined Single Limit . This creates higher limits for both bodily injury and property damage coverages, including per occurrence limits. Although you can purchase other limits, the most common commercial automobile CSLs for a small business are $500,000 and $1,000,000.
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Find The Right Commercial Auto Insurance For Your Business
Commercial auto insurance is a type of insurance policy that helps cover vehicles used for business purposes such as cars, trucks and vans. Commercial auto insurance covers vehicle damage and driver injuries.
If you use your vehicle as part of your business, get your free online commercial auto insurance quote from GEICO today. We’ve been doing this for over 70 years, and we work hard to provide the specialized auto insurance coverage your business needs, at a great price. Whatever the size of your business, we’ll help customize a policy that works for you.
How Much Does Commercial Car Insurance Cost
Commercial car insurance costs can vary based on a number of factors, including the amount of coverage you have, the number of vehicles covered, and the type of vehicles your business operates. According to the business insurance advice website Insureon.com, the median cost for commercial car insurance is $142 per month or $1,704 per year, assuming a $1 million policy limit.
That, however, is a median figure, and your costs could be higher or lower, depending on your industry’s risk profile, who’s driving the vehicles, and what’s included in your policy. For example, if you operate a high-risk business, your premium costs could end up being higher as a result. On the other hand, if your business is lower risk, then you may pay well below the median for commercial coverage.
When comparing costs for commercial car insurance, be sure to ask the insurance company if there are any discounts available. For example, if you’re insuring a fleet of 10 vehicles, the insurance company may be willing to cut you a break on premiums, which could help save your business money.
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Do I Need A Business Auto Policy
Your insurance agent will ask in detail how you use vehicles in your business who will be driving them whether you own, rent or lease and whether you and your employees are likely to be driving their own cars for your business. The answers to these questions will indicate the types of coverage you need.
In general, only a BACF can provide the level of liability protection a business needs. In todays litigious society, many insurers recommend a business auto coverage limit of $1 million with $500,000 as the minimum that even a small business needs to cover the potential damages in a serious accident.
Determining What You Need
Products underwritten by Nationwide Mutual Insurance Company and Affiliated Companies. Not all Nationwide affiliated companies are mutual companies, and not all Nationwide members are insured by a mutual company. Subject to underwriting guidelines, review and approval. Products and discounts not available to all persons in all states. Nationwide Investment Services Corporation, member FINRA. Home Office: One Nationwide Plaza, Columbus, OH. Nationwide, the Nationwide N and Eagle and other marks displayed on this page are service marks of Nationwide Mutual Insurance Company, unless otherwise disclosed. ©. Nationwide Mutual Insurance Company.
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How Is Commercial Auto Insurance Different From Regular Auto Insurance
Although commercial auto insurance has many of the same policy features as a regular car insurance policy, there are some differences between the two policies. The main differences between a commercial and personal auto insurance policy include:
Available levels of coverage
The cost of both types of insurance
Tax deductibility of commercial insurance
Who’s covered by both types of policies
The amount of coverage needed to insure commercial vehicles is often higher than a regular car or truck because of their size, the amount of damage they could cause in an accident, as well as the value of their cargo. For these reasons, commercial policies usually cost more than regular car insurance coverage.
However, unlike personal car insurance, commercial auto coverage may be tax deductible. As necessary business expenses, you may be able to deduct the cost of your insurance, along with vehicle repairs, garage rent, lease payments, new tires, and tolls.
Finally, unlike regular auto insurance coverage a commercial policy can cover a variety of drivers, including your employees, your family, and others whom you name on your insurance agreement. Regular car insurance covers members of your household, along with others who drive your car occasionally, unless they have non-owners coverage.
Am I The Owner Of The Vehicle Or Is It Registered To My Business
The vehicle listed on your commercial auto policy can be registered to your name or the name of your business.
Note that anyone who regularly drives your vehicle should be listed on your NEXT commercial auto policy.
Other drivers can occasionally use the vehicle and still be protected by your coverage but they might not be covered if it is revealed they regularly use the vehicle for your business.
What Coverage Do I Need If My Employees Use Company Vehicles For Personal Use
Some businesses let employees drive company vehicles home and use them for personal purposes in the evenings or on weekends. So long as these vehicles are scheduled on your business auto policy and the appropriate coverage auto symbols are shown on the “Declarations” page, you have coverage for owned autos taken home by employees.
Employees own personal auto policies will not cover their use of a company car unless the car has been specifically borrowed as a temporary replacement for the employees own car while it is unavailable. In addition, employees who lease, hire, rent or borrow autos for their personal use are not covered by their employers business auto policy.
How Much Does A Commercial Auto Insurance Policy Cost
ItÃ¢â¬â¢s difficult to give a straight answer to this question since the cost of commercial auto insurance is heavily dependent on the needs and finances of any given business or individual. For a basic idea of what you can be looking at, here are some percentages taken from data regarding small businesses and how much they average in commercial car insurance annual premiums:
- 44% of small businesses pay under $1,500 annually for commercial car insurance.
- 34% of small businesses pay anywhere from $1,500 to $3,000 annually for commercial car insurance.Ã
- 22% of small business pay over $3,000 annually for commercial car insurance.Ã
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