Commercial Automobile Insurance: What You Need to Know

Car and pen on insurance documents. Car insurance conceptCar and pen on insurance documents. Car insurance concept

Commercial automobile insurance is a policy that business owners can purchase for their commercial vehicles. This type of coverage protects the drivers of those vehicles as well as the businesses themselves in the event that an accident occurs. There are a few things that business owners should know about commercial automobile insurance before they decide to purchase a policy.

One thing to understand is that there are different types of policies available, and each one offers different levels of protection. Business owners should carefully consider what type of coverage they need in order to best protect their company and employees. They should also be aware of the fact that rates for coverage can vary significantly from one provider to another, so it is important to get commercial automobile insurance quotes from multiple sources before making a decision. Let’s take a look at some things you should know about commercial insurance.

How do you choose the right commercial automobile insurance policy?


When it comes to commercial automobile insurance, there are a few things that business owners need to know in order to make the right decision for their company. The first thing to understand is the difference between personal and commercial automobile policies. A personal automobile policy is designed for individuals who use their car for personal reasons, and most states require that all drivers carry a minimum amount of liability insurance. A commercial automobile policy is designed specifically for businesses, and the requirements will vary.

There are a few key factors that business owners need to consider when choosing a commercial automobile policy. One of the most important is the type of business you own. Some businesses are more likely to be involved in accidents than others, so it’s important to find a policy that fits your specific needs. Another factor to consider is how many vehicles you own or operate. Policies vary in terms of coverage limits, so be sure to choose one that will provide adequate protection for your company’s vehicles.

Businesses should also be aware of what types of driving activities they will be engaging in with their vehicles. Certain policies may cover certain types of driving but not others. For example, if your company uses its vehicles for delivery purposes, you’ll want a policy that includes coverage for goods in transit.

What is included in a commercial automobile insurance policy?

A commercial automobile insurance policy is a contract between an insurer and a business owner that provides coverage for automobiles used in the course of the business. Policies can include both liability coverage, which pays for damages to other people or property as a result of an accident, and collision coverage, which pays for damages to the vehicle itself. In addition, the policy may also include medical payments coverage, uninsured/underinsured motorist coverage, and rental car reimbursement.

What are the different types of commercial automobile insurance?


Similar to personal auto coverage, there are several different types of commercial automobile insurance policies available, and each offers different levels of coverage. The most common type of commercial automobile insurance is general liability insurance. This policy protects businesses from lawsuits that may arise if someone is injured or their property is damaged as a result of an accident involving one of the company’s vehicles. General liability insurance also covers legal expenses associated with such accidents.

Another type of commercial automobile insurance is collision coverage. Collision coverage pays for damages to a vehicle that occurs as the result of a collision, regardless of who was at fault. Comprehensive coverage provides protection against non-accident-related damage resulting from things like theft and vandalism. Finally, medical payments coverage helps pay for medical expenses resulting from an accident involving a company vehicle. This coverage applies even if the driver was not at fault in the accident.

Depending on your business, there are other types of commercial insurance policies that you may need to consider. Tow truck operators, for example, need on-the-hook coverage to protect the vehicle that is being towed. Aside from regular vehicle insurance, you might need to consider additional commercial vehicle coverages.

As a business owner, you should remember that commercial automobile insurance is just one piece of the puzzle when it comes to protecting your company. Commercial auto insurance will provide coverage if someone is injured or property damage occurs due to an accident involving one of your vehicles. However, it is essential that you investigate numerous policies and plans to determine the coverage that your business needs.


Hey, I’m


Eloise is the newest addition to the Julie Teaches team as writer, photographer, and all around wellness aficienado. When she’s not shooting or designing, she’s usually teaching yoga and pilates classes.