How to choose between different types of commercial auto insurance

A commercial auto insurance policy is used by business owners to cover the vehicles working for their business if they undergo any sort of damages or replacement of parts due to accidents, etc. This insurance covers a wide range of vehicles and is different from personal auto insurance. Both types of insurance cover vehicles but if your vehicles are under a business or used for commercial purposes, it is recommended to go with commercial auto insurance. The reason for having insurance, if you do not exactly know why to go for one, is to have a backup to pay for the potential damage to the person, or in this case, automobiles.

The different types of coverage of commercial auto insurance are as follows.

  • Bodily injury liability
    When the insured person dies in an accident due to his/her own fault, the insurance company pays their family for the medical expenses and damages.
  • Property damage
    The damages caused by the insured person on other’s property are covered by the insurance company if he/she is at fault.
  • Comprehensive
    When the vehicle is damaged by some unforeseen circumstances and crimes like robbery, theft, etc, the insurance company pays for the damages to the insured person.
  • Medical
    Medical expenses at the hospital for treatment are covered by the insurance company.
  • Personal injury protection
    This covers the injuries and wounds suffered by the insured person and the passengers in the vehicle in an accident.
  • Uninsured/ underinsured motorist
    When the insured person injures or kills a person in a vehicle, he should pay for that person’s damages, medical bills, etc, if the person is underinsured, i.e., the company doesn’t pay enough or is uninsured (lacks any insurance). He/she should also pay for the property damage incurred on the victim’s vehicle due to his vehicle.

Commercial auto insurance that you choose will always depend on the risk factor and necessity of the driver’s work environment. For example, a test driver must have more medical insurance coverage and bodily insurance coverage as the chances of him dying or being seriously injured are more.

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