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Understanding Commercial Auto Insurance
You can find the right commercial auto insurance policy for your business needs by following these tips!
- The first thing to consider when looking for it is the type of business you are in. Different policies are available for various businesses, so it is important to know what your business entails.
- You should also consider the jurisdiction you live. The laws regarding commercial auto insurance vary, so it is important to know what is required in your area.
- It can be expensive, so you need to find a policy that fits your budget. However, it is important not to skimp on coverage to save money.
- You should also make sure that you are familiar with the terms of your policy, such as the deductible and the coverage limits.
- Finally, you should always read the fine print. Those such policies can be full of exclusions and limitations, so it is important to know what you are getting.
By following these tips, you can find the right policy for your business needs! Feel free to ask our brokers any questions you may have.
Type of business
Size of your business and delivery
Familiar with the terms
Read the fine print
Why and Who Needs Commercial Auto Insurance?
Not all car insurance's the same. It is essential to compare both personal and commercial and know what is required to have proper coverage. We have this comparison of commercial auto vs personal auto in detail to help understand each and its features.
What's Unique About Commercial Auto Insurance?
If a business requires an operating vehicle, you need commercial auto insurance. Moreover, all companies should review their business insurance to ensure it covers as intended to avoid the coverage gap.
Consider the following scenario: if you are delivering food to your customers to fulfill online order, a contractor visiting job sites taking their expensive equipment to the worker, picking up clients from the airport on the way to show the newly listed house for sales, commercial auto insurance is needed for all above to protect the business to risk and potential financial loss. Vehicles are critical to getting a job done in business. Therefore, getting the proper business car insurance is essential for business.
What are the risks compared to personal car insurance?
Comparing Commercial Auto Insurance vs Personal, Commercial auto is intended to protect a company on liability and physical damage for cars, trucks, and vans used to generate income. It requires a separate policy from personal vehicles because they are typically exposed to more risk.
As a business owner, you should consider the following to determine if commercial auto insurance is needed.Should employees use their vehicle for business purposes; Always ensure they are listed as drivers on the commercial vehicle insurance policy.
What are the features of a commercial auto policy?
However, personal vehicle policy will decline payment in the event of an accident should the vehicle be found being used for business. Anyone involved in a car accident while working, visiting clients, and delivering merchants or real estate persons making a business visit will decline under personal insurance. When comparing commercial vehicle vs personal, the personal car insurance policy states that it cannot be commercially used.
Driving as a construction worker carrying tools to sites, delivering merchandise, taking passengers (such as public taxis, buses, or even ambulances) will be considered illegal without valid commercial insurance. Even the car has been on incidental use for personal errant.
How does Garage Auto Insurance work?
A garage insurance policy is intended to protect the business by covering anyone if they are injured, damaging the company vehicle and others' property, including others' vehicles. Any staff running the business with the client's vehicle who got into an accident will have coverage under the policy.
Vehicle dealerships, automobile body shops, service stations, repair garages, tow truck operations, and parking lot owners need such garage auto insurance policy.
However, businesses involving leasing vehicles to others will not be covered under it. This will be a commercial vehicle policy.
Must I fully disclose everything related to my business when buying auto insurance?
A business will also need to have a commercial auto insurance policy if the employees operate their own vehicles. A typical company such as courier will need to have commercial auto insurance under these circumstances. In short, it allows business and personal use of vehicles, while the private insurance policy is strictly for personal use only.
How much commercial auto insurance coverage do I need?
Contact us to see how we can customize the insurance to best match your business requirements.
A business owner needs to consider the level of coverage they need for commercial vehicles. Third-party liability is mandatory, but other coverage includes repairing or replacing damaged, or stolen vehicles, renting replacement vehicles can be added. However, we need to declare to the insurer the nature of business use and determine the right insurance available.
Commercial General Liability
How does Fleet Insurance work?
You Must Have Commercial Insurance If:
|Using a vehicle for any of these:
Protect your business with our proper commercial auto insurance solution based on any unique needs. Get the basic business vehicle coverage with the right amount of liability coverage if anyone with access to the company car accidentally hurt someone or damage their property. Accident benefit packages are available across Canada to provide health care for you or your employees.
So, in short, commercial auto insurance can be seen as an extension to coverage on private vehicle policy when it is declined for the above use.
Optional Add On
For Both Personal and Commercial Auto Insurance
This option covers damage to your own vehicle, depending on the option including all Perils, Collision, Comprehensive and Specified Perils
|Family and friends Protection
|This option is added to most car insurance policies. They cover when responsible drivers carry insufficient liability limits to family and friends injured in the vehicle during an accident.
|Loss of Use
|This option allows a replacement vehicle due to an insured loss. There is a cap to a replacement vehicle.
|Limited Waiver of Depreciation or Replacement Cost
|Insurance will pay a depreciated value to the vehicle's damage if the accident results in a total loss. This option allows the insured to get the actual purchase price or the cost to replace depending on the selection. There may be a period this option is allowed to add to the insurance policy. Some restrictions are applied.
|Limited Glass Endorsement
|This "reverse coverage" reduces the comprehensive coverage by limiting vehicle glass, and it will lower the rate.
|Accident Rating Waiver
|This option protects a good driving record from being downgraded due to a first "at-fault" loss. The insurance premium would not increase due to an accident. Some restrictions are applied.
|Auto Network support
|Some of our partners have the option for free tow or emergency roadside support added to the policy.
|Legal Liability for Damage to Non-owned Vehicles
|This provides coverage on legal responsibility for damage to an operating vehicle not belonging to the insured driver (such as a rental company's car). There is a maximum value to a vehicle it covers.
For Commercial Auto Insurance Only
|Industry-based fleet insurance coverage
Multiple vehicle discount programs cater to various industries, including trucking, manufacturing, energy, realty, construction, etc.
|If business involving services or repairs other people's vehicles, you have liability exposure and need to have this.
|Commercial Use Endorsement
|As personal insurance for cars forbids using a vehicle for a purpose other than personal, there is an add-on to make it exception under commercial car insurance. Some include permission to carry passengers, use as a driving school, carrying radioactive, toxic or explosive in the vehicle.
|Some commercial auto insurance allows additional cargo coverage, such as passengers' goods or luggage up to a certain amount. For some trucks with a container, MTC or Motor Truck Cargo can request protection of customers' interest in care.
|Customs and excise bonds
|Suppose a business involves in car parts for importing, exporting, manufacturing, sales, or distributing goods in Canada. In that case, we can arrange for customs or excise bond.
|Complex Risks for vehicle insurance
|Transportation of goods between the U.S. and Canada needs a detailed description due to its complex nature.
Commercial Auto Insurance Compare with Personal. Use of a personal vehicle for business may get into trouble. You need commercial auto insurance that fit most business needs. Call to discuss the detail now.