Commercial vehicle insurance is a policy that all businessmen need to cover for trucks, vans, and cars used in their businesses. No matter how big or small the business is, being covered by this type of business insurance will make a big difference.
Buying a commercial vehicle insurance is important for business owners who use commercial vehicles in the main process of their business, like pick-up and delivery services. This insurance policy provides physical damage and liability coverage for situations, amounts, and usage not covered by the PAP or personal auto policy. Knowing the difference between these two automobile policies and understanding when they are needed will greatly help in the success of one’s business.
What type of Vehicles are Covered?
The vehicles covered in the commercial vehicle insurance include all automobiles used for business such as the following:
- Company cars
- Box trucks
- Food trucks
- Work vans
- Service utility trucks
Commercial vehicle insurance can help pay to repair any damage to a commercial vehicle if it has been damaged by collisions, natural calamities, or theft. It can also cover the lawsuit costs if a case will be filed against the insured after an accident (including legal fees and medical expenses).
Types of Coverage
Choosing commercial vehicle insurance coverage is crucial in protecting a business. The coverage includes the following:
Bodily injury liability coverage
This policy helps pay for any expenses for bodily injury or the demise of someone involved in an accident for which the insured is at fault.
Uninsured motorist coverage
This coverage pays for the insured’s injuries and any property damage caused by an uninsured motorist, including a hit-and-run. Uninsured motorist coverage is an integral element of commercial vehicle insurance policy because it helps the insured pay for all medical bills or repair expenses if the insured’s vehicle is hit by a driver who does not have any automobile insurance.
Medical payment coverage
Also called the personal or no-fault injury coverage, medical payment coverage pays for the cost of hospitalization and other medical expenses of the driver and passengers in the vehicle involved in an accident, no matter the fault.
Do You Need Commercial Vehicle Coverage If You Have a Personal Auto Policy?
These two insurance policies are appropriate in different situations. For example, the personal automobile policy is applicable if you only use your personal vehicle to meet with clients from time to time. However, the business vehicle insurance might be a better choice if:
- You regularly drive your personal vehicle for business transactions
- Your vehicle is registered under your business.
- Your employees use the company cars.