You’ve just started your small business. You’re making your first delivery using your brand new company car. With all of the excitement in the world, you get ready to turn onto the customer’s street.
Then, it hits you. Literally, a car hits you.
Now, your commercial vehicle is rendered useless and your customer is going to have to wait a little longer to get his/her delivery.
But, what if you had insurance? For the right commercial auto insurance cost, your policy could completely cover everything that you need and want.
If you’re worried about the money or just want to learn more, keep reading. We’re going to tell you everything you need to know.
What Is Commercial Auto Insurance?
Commercial auto insurance is a special kind of business insurance. It covers all of the vehicles that your business owns, and it’s one of the many types of insurance that your business needs.
Standard insurance plans cover theft, natural disasters, vandalism, and accidents. Even if you don’t think that any of this will happen to you, you should invest in insurance.
Your business relies on your vehicles to work smoothly. Your customers do, too.
So, you may want to consider investing in commercial auto insurance even if you use your personal vehicle for business trips every once in a while. Most commercial auto insurance policies even cover rental vehicles and leased vehicles.
Will My Personal Auto Policy Cover Business-Related Accidents?
Unfortunately, there is no guarantee. You shouldn’t expect your personal auto insurance to cover the gaps. It’s more likely that it won’t.
Even if the policy covers the damage to the car, it’s not likely to consider the business-related items in the car.
Should I Invest in Commercial Auto Insurance?
In general, all business owners need car insurance for their vehicles. Even if you’re occasionally using your personal car for work trips, you should invest in the insurance. Without it, your personal insurance may not cover any mishaps that happen during the trip.
If you rarely use a vehicle for work purposes, you may be able to risk not having a devoted insurance policy. However, you should be aware that – again – personal auto insurance doesn’t do the trick for work-related matters.
And, if you do decide against investing in an auto insurance policy, you’re taking a huge risk. You’re gambling that nothing is going to happen.
Overall, anyone who is regularly using their vehicle for work-related purposes needs to invest in insurance. It doesn’t matter whether they’re picking up supplies, dropping off orders, or meeting with clients.
We highly recommend that every business owner has commercial auto insurance. Skipping out on auto insurance can cause big financial problems and liability issues down the line.
What Does Commercial Auto Insurance Cover?
Because they cover (mostly) the same things, commercial auto insurance and personal auto insurance are very similar. So, you may notice some consistencies in the situations and things that commercial auto insurance covers.
The first is collision coverage. Commercial car insurance will cover the costs that result from any damage that your vehicle incurs as a result of an auto accident.
Commercial insurance also offers personal injury protection and medical payment coverage. With personal injury protection, your commercial insurance will pay for any costs that result from the injury/injuries of you and your passenger(s). Medical payment coverage means that the commercial insurance plan will pay for related medical expenses for you and your passenger(s).
Commercial auto insurance through your business can also help cover costs from the other vehicle that may have been involved in an accident. Bodily injury liability covers the cost of any injuries that may have occurred in the other vehicle. With this, property damage liability covers the costs related to the damage or destruction of someone else’s property.
Lastly, most commercial car insurance plans have gap insurance. This means that the insurance company will cover the remaining amount of money that you owe on a leased vehicle if that vehicle is involved in an accident.
How Much Does Commercial Auto Insurance Cost?
Like other kinds of insurance, the cost of your commercial auto insurance plan will depend on several factors:
- The driver’s driving record
- The experience that the driver has had
- The number of drivers that you have to cover
- The type of vehicles that your business is using
- How far the vehicles are going
- What your business is using the vehicles for
- How much the policy is going to cover
Of all of these factors, the main concerns are the liabilities that your business may have. These may include old vehicles, past claims, or drivers with poor records.
How Can I Lower the Cost of Commercial Auto Insurance?
The key to lower insurance costs is to lower your risk.
For those of you who don’t use your car too often, you’ll have lower insurance premiums. There is less risk, so the insurance company will charge less.
You should discuss how often you drive for business purposes when you’re negotiating with an insurance representative. They’re going to be more willing to give you a better deal if you drive less and drive safer.
You may also want to consider what kind of vehicles your business is investing in. If you’re using old, run-down vehicles, it may be time to get an upgrade.
Not only is it great for your auto coverage. It’s also great for ensuring that your team won’t get stuck somewhere with a broken-down vehicle.
Where Can I Get Commercial Auto Insurance in North Carolina?
If you own a business, it’s time to invest in commercial auto insurance. It’s only a matter of time until something happens, and you want to have coverage when it does happen.
If the commercial auto insurance cost is scaring you, there are many ways to bring down the price. All you need is a little bit of caution and investment.
If you’d like to discuss auto insurance options in North Carolina, our team has offers in Raleigh, Charlotte, and Durham. Get a quote today.