Commercial Vehicle Insurance: Do You Really Need It?

If you own a company with a fleet or use a personal vehicle for business reasons, you will need a commercial auto insurance policy. While commercial and personal policies have many similarities, there are differences to consider. A commercial policy may cover:

  • Delivery vans and trucks
  • Work vehicles
  • Forklifts and construction vehicles
  • Food trucks
  • Dump trucks
  • Company cars
  • Box trucks
  • Service trucks

When insuring your business trucks, it’s best to have collision and liability coverage. Liability coverage pays others’ costs after an accident, while collision pays the company’s expenses to repair an accident-damaged vehicle. Unlike personal auto insurance policies, commercial insurance premiums are usually tax deductible.

How Does Commercial Auto Insurance Work?

Commercial vehicle insurance is designed to cover situations specific to businesses and their needs. Those who are self-employed and have business-only vehicles need commercial policies to cover them. Aside from the collision and liability benefits mentioned above, commercial auto policies may cover: A local insurance company like cic can help you find the right coverage

  • Personal injury and medical claims arising from accidents.
  • Problems created by severe weather, falling objects, vandalism, and theft.
  • Situations created by uninsured motorists’ negligent behavior.
  • Trailers being towed by company vehicles.
  • Rental vehicle expenses.
  • Employee vehicles used during operations.

Commercial auto policies sometimes cover items inside vehicles, such as supplies and tools.

Who Needs a Commercial Auto Insurance Policy?

If you own a business and use vehicles, you’ll likely need a commercial policy. However, sole proprietors and the self-employed may find it harder to determine if they need commercial coverage. Consider factors such as:

  • The level of coverage offered by your personal insurance policy.
  • How vehicles are used.
  • A vehicle’s weight and type.
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If you already have a personal insurance policy and aren’t sure if you need commercial coverage, a local insurance agent can help.

The Cost of Commercial Auto Insurance

Commercial auto coverage costs vary based on several factors, including coverage level, vehicle type, and the number of cars and trucks covered. According to a Car and Driver article, commercial vehicle owners can expect to pay anywhere from $600 to $12,500 per year for coverage. That figure is an approximation, and your costs may vary depending on who drives the vehicles, what’s included in the insurance policy, and the industry in which you work. When shopping for a commercial auto policy, be sure to ask about discounts.

Comparing Insurance Providers and Finding the Best Prices

If your business needs commercial auto insurance, it is crucial to review various policy options before committing. Evaluate aspects like:

  • Collision and liability coverage options.
  • Add-ons for rental vehicles and trailers.
  • Maximum and minimum coverage limits.
  • Covered vehicles.
  • Premiums.
  • Deductibles.
  • Discounts.

If you have a personal auto insurance policy, start with your current provider to see if they also offer commercial vehicle coverage. Existing customers can typically get discounts on commercial insurance, and combining policy types is easier than dealing with multiple insurance companies. Again, a qualified insurance representative will explain what coverages may be needed for a specific situation.

Get the Right Coverage for Your Vehicles and Your Business

Every business is different, and your company’s coverage needs may vary depending on a few factors. Some vehicles, such as large commercial trucks, may need higher limits to account for their cargo and weight. A local insurance company can help you find the right coverage for your needs and budget.