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Commercial Auto Insurance

Commercial Auto Insurance Overview


Good commercial auto insurance is specifically engineered for vehicles utilized in the operation of a business. It assists in protecting the policyholder from various issues of liability and from expensive repair bills should a commercial vehicle be involved in an incident that results in damage.

Who Benefits?

Commercial auto insurance is tailored for all types of businesses that use vehicles in any way for their operations. Not only is it often mandated by law, it is necessary to ensure that the business owner can avoid any unnecessary legal, medical, or repair costs. Businesses, both big or small, can make great use of this type of coverage.

The Details

A business auto policy is not too different from a personal auto policy. As in traditional car insurance, the company will first determine what coverage types and levels they need. Once accomplished, the business will then buy the policy of choice. The insurance provider will give the company a contract to sign and then the coverage is initiated. Coverage starts, however, only upon the signing of the contract. The policyholder is then obligated to pay the premiums consistently and on time until the time comes when a claim must be filed. This is done in accordance with the set procedures of the insurance provider. The insurance company will then contact the insured with direction and instructions on how to proceed.

Types of Coverage

There are two main types of coverage of commercial auto insurance. The most common is the “per vehicle” coverage, which is usually obtained by small to medium sized firms. Larger ones will likely find it to be more cost-effective to buy fleet insurance. A fleet insurance policy is a more comprehensive policy that provides coverage for all the vehicles and drivers at a company simultaneously. This is different from the per vehicle insurance policy in that an individual policy must be obtained for each vehicle used in the functioning of the business. All of the employees that use any car must also be on the policy.

Big Benefits

Businesses that choose the most comprehensive commercial auto insurance policies are rewarded with many benefits. They will enjoy liability coverage should someone take legal action against the company, related to the company’s vehicles. The company will also obtain compensation for vehicle repair costs. Keep in mind that many insurance companies will opt to pay directly the mechanic who does the repairs.


Commercial auto insurance is engineered very specifically for vehicles used in business and it provides priceless protection from liability. It also provides a company great protection from costly repair bills, should a company vehicle be damaged. It can be a wise move to take advantage of the best policy a business can afford.