HOW TO CHOOSE BETWEEN DIFFERENT TYPES OF COMMERCIAL AUTO INSURANCE.

A Commercial Auto Insurance is required to cover all vehicles used in a business organization or by business owners. All organizations should have a proper insurance coverage by a Commercial Auto Insurance Policy.

A Commercial Auto Insurance Policy is to cover or claim liability and physical damages to vehicles owned and which are not covered by any other auto policies. There is a difference between personal auto insurance and commercial auto insurance policies. Personal vehicle policies are not meant for business purposes.  Knowing this difference will be beneficial to a business owner.

Choosing the correct Commercial Auto Insurance policy, is to protect your business properties and employees against legal threats and financial loss. So in order to select the most suitable policy, the business owner must understand the various types of coverages available. As a result Automobiles are divided in to two categories;

·         Personal autos- cars, vans, mini trucks

·         Tractors, trucks, trailers used for business purposes.

Liability Insurance, Collision Insurance, Comprehensive, health and medical coverage, insured and uninsured motorists categories are the policies available in a Commercial Auto Insurance Liability. Further explaining the coverage, the insurance company pays for physical injuries or death occurred as a result of an  vehicle accident and also provides legal support if the victim or employee files a lawsuit. In case the vehicle has damaged third party property, the coverage provides legal defense.

Liability insurance is generally required by many states. Medical payments are made to the driver and passengers present at the time of an accident, it is also known as personal injury protection. Collison and comprehensive coverage are paid for damages caused by natural disasters or vandalism and if the vehicles collides or has been collided with another vehicle causing severe damage.

Collision insurance coverage as well as comprehensive coverage is required and beneficial if the owner is on a lease agreement or a loan agreement against the vehicle. If an accident occurs by an uninsured or insured driver, the coverage pays for compensation and medical costs caused as a result of the incident.

A special commercial auto insurance policy could be obtained on request as many businesses and business owners use vehicles for daily operations. Catering trucks, vehicles used for landscaping, plumbing, electronic, painting and sales falls under this category. A unique policy will be custom designed for insuring these vehicles under the Commercial Auto Insurance policy.

These policies will specifically protect these businesses from hazards experienced while at work, such as collision or damage of equipment or delivery and pick-up trucks being vulnerable to road accidents. Skilled workers too are highly exposed to accidents while travelling despite what an individual’s career may be. Therefore it is advisable to obtain  a Commercial Auto Insurance policy in order to safe guard the vehicles utilized in an business organization as well as the business owners, employees and motorists to avoid any unnecessary legal issues or financial downfalls due to carelessness or a unsuitable Auto Insurance policy.