Commercial auto insurance is insurance designed specifically for business vehicles. It provides protection from liability. It also provides protection from high repair bills after damage to a vehicle.
Commercial auto insurance is for all businesses that use vehicles in any way. Not only is it required by law, it is necessary to avoid unnecessary legal, medical, and repair bills. Both large and small businesses can make use of this type of policy.
The policy that businesses will purchase is very similar to a personal policy. The company will first need to determine its coverage type and level of coverage. Once it has done that, the business must purchase the policy. The insurer will provide the company a contract that it must sign to start coverage. Coverage starts when the contract has been signed. The insured doesn’t need to do anything other than pay premiums until it needs to make a claim. This must be done in accordance with the procedure set forward by the insurance company. The insurer will contact the company with instructions at this point.
There are two main types of coverage in existence. The most common is per vehicle insurance, which is used by small to medium-sized companies. Large companies will find it cost-effective to use fleet insurance. A fleet insurance policy is a blanket policy that provides coverage for all of the company’s vehicles and drivers at once. This is quite different than per vehicle insurance. Per vehicle insurance is exactly what it sounds like. An individual policy must be purchased for each vehicle, and all of the employees that drive that particular vehicle must be on the policy.
Businesses with excellent auto insurance policies get several benefits. They have liability coverage in the event that someone files a lawsuit related to the usage of the company’s vehicles. The company will also get reimbursed for their vehicle’s repair bills. Many insurance companies will even pay the shop doing the repairs directly.
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