What is Commercial Auto Insurance?

Commercial auto insurance protects a fleet that is operated by enterprises, organizations and government agencies. Such a policy provides various monetary benefits for automotive repairs for insured vehicles that have been involved in crashes, accidents and other situations on or off the road.

Who it is For

Such an insurance is offered to businesses, non-profit organizations, higher education institutions and government agencies that operate commercial vehicles. Trucks, vans and buses are some of the most widely used commercial vehicles. It’s also possible to insure a passenger vehicle under this insurance. For example, sedans and SUVs that used to transport products or people are eligible for this insurance policy.

How it Works

Before a commercial vehicle can be properly insured, it has to be evaluated by an insurance company. The total distance that an insured vehicle is expected to travel per day plays a big role in the insurance premium. Of course, insurance agencies also consider many other factors such as the experience of the drivers, makes and models of the vehicles and many more. Commercial vehicles that have the latest active and passive features often qualify for major discounts on the insurance policies.

Different Types of Coverage in Existence

A liability plan provides monetary benefits to anyone who is injured in an accident involving a commercial vehicle. An uninsured motorist policy protects commercial vehicles from damage that is made by other drivers who do not carry valid auto insurance. With comprehensive coverage, commercial vehicles are insured against an array of possible situations such as vandalism, severe weather and freak accidents. Collision insurance yields money for mechanical and cosmetic repairs for commercial vehicles that have been involved in a collision with other cars, people, animals or inanimate structures.

Major Benefits

Any enterprise or entity that has this type of insurance can save money on repairs of a commercial fleet. Trucks and buses that travel long distances can also be covered with roadside assistance to ensure they don’t get stranded and lose precious time and money. This insurance also gives peace of mind to passengers who ride in insured commercial vehicles.