Types of Commercial Auto Insurance
If you are running a business, you can expect that there are different automobiles thatll be used and dealing with commercial auto insurance might be more difficult especially when you dont know how to choose one. One of the most important decisions that youre going to make when youre running a business falls on choosing the best insurance policy. Obviously, you want to make sure that the policy will protect your assets and also, your employees from untoward financial losses and threats for lawsuits.
The first thing that you have to do here is to locate an auto insurance coverage and it can be done by understanding various commercial insurance coverage. The truth is, commercial auto insurance is divided into two categories and these are the following:
Private passenger these are automobiles that are meant for personal use including small trucks, SUVs, vans and cars.
Commercial vehicles for this one, it includes automobiles that are used mostly for commercial purposes similar to tractors, trailers, trucks, dump trucks, pickups, dry freight, auto hauler, refrigerator box, tanks and so forth.
In addition to that, you must know that commercial auto insurance fall in two different categories including specialized commercial auto insurance and general auto insurance. With regards to general auto insurance, there are different coverage it focuses on like:
Comprehensive coverage this coverage starts when the car sustained damaged or if it is vandalized which is caused by something apart from another car like a fallen tree or an animal.
Collision insurance in the event that the car is hit and got damage by another object, car or if it has overturned, then this insurance will provide protection to the owner. Most of the time, automobiles that have a lease or loan on them is the best candidate for this insurance.
Underinsured/uninsured motorist in this kind of insurance, it is covering the damages as well as medical cost that were incurred in the accident caused by motorist who is either underinsured or not insured.
Liability insurance in general, this insurance is what most states need. It takes effect when you are the one who caused the accident. It is going to protect you not only from damages but also, it is going to provide you legal defense if the other party has filed a lawsuit against you.
As for Specialized Commercial Auto Insurance, this is designed for businesses that have to use specialized automobiles to do their day to day operations with coverage specifically designed for landscaping vehicles, catering trucks and other trade related vehicle coverage.