Commercial auto insurance is a type of commercial insurance policy that applies to cars owned or used by a business. It provides protection against liability for damages caused by accidents involving commercial cars and offers some compensation to occupants of the commercial car injured in accidents. This type of insurance only covers business-owned vehicles and does not cover personal vehicles used for commercial purposes, unless that is their primary use. Commercial auto insurance is an essential form of protection for businesses that rely on motor vehicles. It is important for any business owner who depends on a business-owned or leased car or other motor vehicle to keep their business running.
Many states require businesses to maintain a minimum amount of auto insurance coverage for commercial vehicles. If your business takes you to another part of the country that requires a higher insurance limit, your commercial auto liability insurance will temporarily provide you with sufficient coverage to comply with the laws of that state. In addition to having the minimum commercial auto coverage required by law in your state, you can choose to add optional coverages to your policy for more protection. The cost of a commercial auto insurance policy depends on several factors such as the size of the company, the types of vehicles insured, and the amount of coverage needed. As such, coverages and coverage limits tend to be different for a commercial auto policy than for a personal auto policy. Understanding how commercial auto insurance works is essential for any business owner. It will help you make an informed decision and ensure the right coverage for your business.