The Top 5 Things You Didn’t Know About Commercial Auto Insurance 

Your morning has been fantastic. You’ve delivered some important equipment to a customer and gotten an order for some more. On the way back to the shop in the delivery van, you take a sip of coffee and it spills down your freshly-laundered white shirt. Instinctively, you glance down to survey the damage and bam! The person in front of you slammed on their brakes for a turtle crossing the road and you’ve rear-ended them. 

They get out holding their neck. There is damage to your front end and their back end. What now? 

If you have commercial auto insurance, there could be some financial help for the injuries and damages. Your liability should help pay for repairs to her car and her medical costs, if any. Your collision should help pay for your repairs. Thank goodness you were forward thinking enough to get the right kind of insurance for your business. 

If you are still questioning whether business insurance for vehicles is for you or you’re exploring coverage options for your company vehicles, it’s important to have all the facts. By researching a few commercial auto insurance facts, you can learn everything you need to know about commercial auto coverage and set your company up for success. 

What Is Commercial Auto Insurance and Why Do You Need It? 

Commercial auto insurance is a policy that offers coverage for business vehicles, so you, your employees, and your organization as a whole have financial protection in the event of an accident. If you have business vehicles or simply use your personal car to complete work tasks, you’ll want business car insurance. Many personal policies have exclusions for professional use, so your claims could be denied if you don’t upgrade to a professional policy. 

Here are 5 top things you need to know about commercial auto insurance. 

#1 Commercial Auto Insurance Covers More Than Just Your Vehicle 

People usually buy personal car insurance to protect their specific personal vehicles, but business owners have more responsibility. You may also have employees who drive your company cars, and you’ll need to cover them and the vehicles they operate. Of course, business auto insurance will kick in to help pay for repairs to your car or any other property you may damage in an at-fault accident. Additionally, it can cover medical bills for you, your employees, and other parties involved in a collision. 

Your commercial policy also has extra protections that don’t directly relate to auto repairs or medical bills. It can also help safeguard you against lawsuits if someone involved in a collision decides to sue your company. 

#2 You Can Insure More Than Just Cars — Trucks, Vans, and Even Special Vehicles! 

There are several kinds of work vehicles that you can protect with a commercial vehicle insurance policy. Depending on your needs, you may use cars, vans, buses, trucks, and other kinds of vehicles to support your operations. A commercial policy can cover any type of automobile that you use for work purposes, including but not limited to: 

• Delivery cars 

• Taxis 

• Medical transport vehicles 

• Limousines 

• Box trucks 

• Moving vans 

• Pickup trucks 

• Utility trucks 

• Food trucks 

• Catering vans 

• SUVs 

It’s important to keep in mind that the vehicle needs to be an automobile to qualify. Pieces of machinery that can travel on roads but are primarily meant to be used off roads, known as “mobile equipment,” don’t qualify. That includes forklifts, bulldozers, lifts, tractors, and other types of equipment designed for industries like construction, farming, and warehousing. 

#3 Your Employees Are Covered — But Not Always in Every Situation 

Commercial vehicle insurance doesn’t just protect you as the owner of the vehicle. It also protects your employees. When you allow your employees to use the work vehicles you own, they become “permissive users” and your coverage extends to them. If they get into an accident while on the job, your policy will kick in and cover them as the driver as long as they’re using a company vehicle. 

Things get a bit more complicated if your employee is using a personal vehicle for work purposes. If an employee uses their own car for your company, you may still be liable for damages even if you don’t own the car, so you’ll want to ensure you have coverage. You’ll have to check to see if your specific plan covers employee-owned work vehicles. In many cases, you’ll need to get an additional endorsement, such as hired and non-owned auto protection, to bridge the gap. 

It’s also important to note that some policies will not protect employees if they’re using a work vehicle for personal use. Some personal activities, like commuting, might be covered, while others may be excluded, especially if an employee is engaging in risky driving behavior. Be clear with your employees about when they’re fully protected and when they may need to rely on their own personal policies. 

#4 Commercial Auto Insurance Protects Your Business Beyond Accidents 

Many people insure their company vehicles to ensure they can repair their car, truck, or van after an accident. However, accidents aren’t the only time you might need to make a claim with a company vehicle. Business vehicles often transport valuable equipment or merchandise, so theft or vandalism can have a massive impact on your company. By getting comprehensive coverage on your auto plan, you can ensure that any stolen or damaged goods are covered if someone steals your vehicle or the contents inside. 

Comprehensive coverage will also kick in if another non-collision event impacts your vehicle. That way, your business car will be fully covered if a flood, fire, or other covered event happens in your area. 

#5 You Can Customize Your Coverage to Fit Your Specific Business Needs 

Just like with personal plans, you can decide what types of commercial auto insurance you want for your business vehicles. Along with standard liability, comprehensive, or collision coverage, you can add on endorsements and extra protections. Customizing your plan with things like roadside assistance, rental reimbursement, loss of use protection, new vehicle replacement cost protection, or lease coverage is the best way to ensure that your policy is a perfect fit for your business needs and activities. 

Get the Right Commercial Auto Insurance for Your Business with Freeway Insurance 

Car policies are a critical part of commercial insurance for small businesses. As a business owner, it’s your responsibility to get the right protection for your company vehicles. Knowing when your policy applies, what it covers, and how it works is essential, whether you have a single company car or an entire fleet of work trucks. 

If you’re looking for quality coverage that protects your business vehicles, get started at Freeway Insurance. Our knowledgeable agents will help you customize a business plan to safeguard your vehicles and employees, so you can hit the road with confidence. Reach out today by visiting a Freeway Insurance office, requesting a free online quote, or calling 800-777-5620 to find the right plan for you. 

FAQs 

Want to learn more? Check out our FAQs about commercial auto protection. 

What Are the Benefits of Having Commercial Auto Insurance? 

Getting commercial protection for your company cars has several financial benefits. It streamlines the repair process and saves you money if you get into an accident or another covered incident. It also safeguards against other financial damages from medical bills, lawsuits, and more. 

What Does Commercial Auto Insurance Cover? 

Commercial auto insurance covers your company vehicles and any permissive drivers, such as employees. It can help pay for repairs to your own company property, alongside medical bills and property damage repairs for any other affected parties. 

Do I Need Commercial Auto Insurance If I Only Use My Vehicle for Business Occasionally? 

You still need a commercial policy if you use your personal vehicle for work. If your personal policy excludes business use, you’ll be out of luck if you get into an accident during work-related activities. Even if you only use your car for your company sometimes, it’s better to be safe when it comes to coverage.