What Is Commercial Auto Insurance?

Commercial auto insurance refers to insurance policies that are targeted at commercial vehicle fleets. These fleets may include trucks used for construction or a fleet of cars used by salespeople or repair staff.

Blanket Coverage

Commercial auto insurance may include blanket coverage, which covers all drivers of all vehicles in a fleet. In the case of businesses such as car dealerships, the insurance also covers nonemployee drivers to certain limits.

Benefits

Commercial vehicle insurance allows a business owner to protect his company's bottom line from charges relating to damage repair and accident liability.

Considerations

Some businesses set high deductibles on their commercial auto insurance policies. While this lowers the cost of the insurance premium, it will increase the company's exposure in the event of an accident.

Special Coverage Identification

The insurance card for a commercial auto insurance policy will indicate that it is a commercial policy and will also note any special coverage on the policy, such as uninsured motorist insurance.

Warning

Depending on the insurer, all employees who drive may be required to meet the underwriting guidelines of the insurance company. As a result, some employees may not be covered by commercial auto insurance.

References

• GMAC Insurance: Commercial Insurance
• Progressive: Commercial Vehicle Insurance
• Business.gov: Business Insurance