Commercial insurance provides protection for any business vehicle against both property damage and liability. Whether you drive your personal vehicle for business or drive a vehicle dedicated for business, having commercial automobile insurance is a must.

What does commercial automobile insurance include?

Commercial auto insurance covers a variety of situations which can vary from one company to another. While there are several types of coverage available, there are others which need to be purchased separately and require choosing the coverage amounts and limits. The typical coverages available are:

  1. Auto accident liability
  2. Commercial automobile insurance includes coverage for liability caused by you during an accident. This could include repair costs for the other party’s vehicle or for the legal expenses if you are sued.

  3. Medical payments
  4. Commercial automobile insurance policies also include medical expenses if you are injured in an accident and the expenses incurred for passengers in your vehicle. This is regardless of who is at fault during the accident.

  5. Physical damage and collision
  6. Commercial automobile insurance also protects against vehicle theft and damages caused by vandalism, weather conditions, and impact with any other object.

  7. Accidents involving uninsured motorists
  8. Commercial automobile insurance also includes medical expenses or vehicle repairs which are caused by your vehicle to motorists who are uninsured.

How does commercial automobile insurance work?

Commercial auto insurance works by providing coverage for vehicles that have been used for business purposes or for commercial drivers. Business owners can either opt for getting coverage for single or fleet of vehicles. Moreover, depending on the institution, commercial automobile insurance offers several types of optional coverage, allowing you to modify the policy basis business circumstances and the use of vehicles.

Additionally, in a case where the business vehicle gets damaged due to natural conditions, an accident or other accidents, you will get coverage for the cost of repairs. Even when the driver of your vehicle is at fault and causes injury/damage to the other person, the other person can claim coverage under your scheme.

When is commercial automobile insurance needed?

Commercial auto insurance is needed for any vehicle which is used for business purposes, vehicles with commercial license plates, or vehicles registered as a commercial auto. In addition to this, vehicles used by employees would also need it.

Apart from the above, commercial automobile insurance might be needed in the following cases:
  1. Using the vehicle to carry equipment
  2. Transporting flammable material
  3. Hiring your vehicle to tow other vehicles
  4. Trucking and freight transportation
  5. Delivering goods such as pizza or wholesale/retail products
Some situations and occupations are generally covered under auto policies. However, commercial automobile insurance is needed for any automobile that is used for business purposes and is not covered under general auto policies.

Click here to apply for a motor insurance.

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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