Are you looking to assess your current insurance coverage needs for your company’s business model? Do you have a fleet of vehicles that you use for your organization? If so, then you need to invest in commercial auto insurance for your business.
There are many providers out there, but how can you be sure you’re investing in the right form of commercial auto insurance coverage? What factors should you be considering? How can you gauge which providers to trust?
See below for a guide on what you should be looking for whenever you choose commercial auto insurance coverage for your company’s fleet.
What Is Commercial Auto Insurance Coverage?
As a business owner, you may own a fleet of vehicles to help your technicians or employees get to where they need to go. This is common among industries such as plumbing, roofers, HVAC, funeral homes, real estate agents, electricians, and so forth.
Allowing your employees to drive those vehicles involves a certain amount of risk. There’s always the potential that they’re involved in an accident of some kind.
That’s where commercial auto insurance comes into play. It can help protect your company’s vehicles in case of an emergency.
Unlike personal auto insurance, commercial auto insurance only covers vehicles that are owned by a business. The only way it covers personal vehicles is if that’s the main usage for the vehicle. It would not apply to the vehicles your employees own and occasionally use for work-related tasks.
Just like a personal car insurance policy, the state of North Carolina requires that all business-owned vehicles have commercial auto insurance. If you get caught without it, it can result in hefty fines.
With commercial auto insurance in place, you’ll have coverage from any vehicle repairs that occur as the result of a crash or accident.
What to Look for in Commercial Auto Insurance Coverage
Since commercial auto insurance is required by the state of North Carolina, you might as well take advantage of this opportunity and find the right policy. But how? See below for factors you should be looking for in commercial auto insurance coverage.
Reputable Provider
There are some business owners out there that sign up for the first auto insurance coverage they come across, never considering the provider they’re doing business with.
But think of it this way: when an emergency strikes your vehicle, do you actually trust your provider to come through? If you can’t answer with “yes” immediately, it’s time to find a different provider.
Be sure to read the online reviews of the insurance provider that you’re considering. Do the previous clients seem happy with their service? Did they get customer-friendly rates? Has the provider helped them get out of a pinch after an accident?
Here at Amistad Insurance Services, we offer the most detailed commercial auto coverage around. Our policies protect you from things such as bodily injury, uninsured motorists, collision coverage, medical payments, property damage, and so on.
Balanced Trifecta
As with any other form of insurance, you should always have your eyes set on three key factors of your commercial auto insurance policy: the coverage, premiums, and deductible.
These three should balance each other out to create a policy that works within your company’s budget. Understanding the three is vital to finding a great fit.
The coverage refers to what situations, emergencies, and costs that your provider will cover as part of your policy. The premiums refer to the amount you’ll pay for the duration of your coverage. This can either be paid in full or (ordinarily) monthly payments.
Lastly, the deductible is the amount that you’ll have to pay before the coverage from your provider kicks in. Raising one of the three up or down will affect the other two.
For example, if you’re wanting to lower your monthly premiums, you can raise the deductible amount that you’d pay if an emergency were to occur.
Factors That Effect Price
Every insurance provider has their own way of dictating the premiums and coverage that they’re willing to offer a client. As the customer, you should attempt to better understand what factors your provider is using to set your policy rates.
Some of the most common factors include:
- The number of cars
- How far your vehicles typically travel
- The type of vehicles you use
- The value of those vehicles
- The type of commercial auto insurance coverage you want
It’s best to reach out to one of our experienced staff members and go through your options. We will shine a light on your situation, what coverage we recommend, and how that affects the price.
What the Policy Covers
If you take nothing else away from this article, please note this: not all commercial auto insurance policies are created equal. Some providers will charge you a higher price for lower coverage.
You’ll want to make sure that you have coverage for things like uninsured motorists, collisions, medical payments, personal injury, and combined single limit.
Imagine the horror of being in an emergency and finding out that your policy doesn’t cover it. Be sure to reach out to Amistad Insurance to get the coverage you need.
Invest in the Best Commercial Auto Insurance for Your Needs
Now that you have seen an in-depth guide on what to look for in the best commercial auto insurance for your company, be sure to use this information well.
Be sure to read this article to learn more about whether or not your car insurance rates go up after an accident.
For more inquiries, please be sure to reach out to us via phone at 919-926-7166 and we look forward to working with your further.
