What Does Commercial Auto Insurance Cover?

Businesses purchase commercial auto insurance to provide liability and physical damage coverage for autos they own, maintain or use. These may include cars, trucks, vans, trailers and buses. Since commercial vehicles usually sustain more wear than typical passenger vehicles, you can expect to pay more than you would to cover your family car.

Business Auto Coverage

Business-owned autos fall under three categories: private passenger autos,
commercial autos and public autos. Private passenger autos are ordinary
autos and less than three quarter ton trucks owned by the company but not
used commercially.

Liability Coverage

Liability coverage includes business operations, ownership, maintenance of
used or covered vehicles and product liability.

Physical Damage

The physical damage part of the policy includes collision coverage for
vehicles under the owner's care from collisions with other objects
or another vehicle.

Comprehensive Coverage

Almost everything other than collision is comprehensive coverage. Standard
exclusions include fire, hail, water, flood, vandalism, falling objects,
glass breakage, riot or civil commotion, windstorm, bird or animal contact,
theft, explosion or earthquake.

Determining the Need for Commercial Auto Coverage

You will need commercial auto coverage if you use your car for deliveries or to transport people for a fee. If you don't know whether you are required to
carry a commercial insurance policy, check with your local insurance agent.

Resources

• Commercial Vehicle Insurance Rates