Having a commercial vehicle goes far beyond just following traffic rules. For companies, having adequate commercial car insurance for their work vehicles goes beyond safety. It’s a smart way to protect the company, employees and business continuity.
Let’s explore everything you need to know about commercial car insurance, how it works, the types of coverage available, and the best tips for choosing the best insurance for your work vehicle.
What Is Commercial Car Insurance?
Commercial car insurance serves to protect vehicles used in commercial activities. Unlike personal insurance, which covers vehicles for private/personal use, commercial car insurance takes into account what work vehicles face on a daily basis.
Furthermore, this type of insurance offers more options, including drivers and protecting the company in the event of accidents, damage and even vehicle theft.
Commercial vehicles go beyond delivery cars or trucks; It also includes transport vans, cargo transport vehicles, service cars and even cars used for frequent visits to customers.
Because these vehicles generally cover more kilometers and face greater risks on the road, insurers apply specific coverage and rates to ensure that the protection offered is truly effective for the company and the vehicles.
The Types of Coverage Available for Commercial Vehicles
Checking the types of coverage available before purchasing is essential to purchasing the right way for your commercial vehicle. Each coverage offers a different form of protection and can be combined according to the company’s needs.
Civil Liability Insurance
This is the simplest but essential type of coverage for a commercial vehicle. The civil liability of this insurance covers damages caused to third parties in the event of an accident. In other words, if the driver of your company’s commercial vehicle causes some type of accident to another vehicle or injures a person, this coverage will only cover the third party’s expenses.
It is important to note that this insurance only covers damage caused to third parties and does not include repair costs for the company vehicle.
Comprehensive Insurance
Comprehensive insurance is coverage that offers more options to protect your company vehicle in a variety of situations, including theft, skidding, rollover and damage caused by natural disasters such as storms, tornadoes and lightning.
This coverage is ideal for companies that operate in high-risk areas or that simply want to ensure the greater safety of their vehicles in different types of scenarios.
Collision and Total Car Loss Insurance
This type of insurance is to cover damage caused to the company vehicle in accidents with other vehicles, poles, houses, walls, among others.
Collision insurance is useful for companies where drivers are in areas with high vehicle traffic every day, where the chances of accidents are greater.
Furthermore, in cases of vehicle accidents leading to total loss of the car or not, it is recommended that you take some measures to ensure your safety:
- If there are victims at the scene, call the police, as it is the driver’s duty to provide assistance, regardless of the severity of the accident.
- If no people are injured, remove cars from the road.
- Signal the accident with a triangle, and turn on the vehicle’s warning lights.
- Report the accident to the police.
- Wait for the police or emergency services outside the vehicle and in a safe place.
Uninsured/Underinsured Motorist Coverage
Unfortunately, not all companies carry insurance, which can pose a major risk to your company vehicle.
Uninsured or underinsured motorist coverage protects your vehicle if it is involved in an accident with another driver who is uninsured or has insufficient insurance to cover repairs.
This coverage helps prevent the company from having to bear out-of-pocket costs in some situations.
Seguro de Cargo
Cargo insurance is for companies that transport high-value merchandise. This insurance covers damage or loss to transported items, ensuring that the company does not suffer major losses in the event of an accident or theft.
Cargo insurance is essential for companies that have businesses such as transport, logistics or operations that depend on the delivery of goods.
How Much Does Commercial Auto Insurance Cost?
There is no way to determine the exact value of commercial insurance, as it will depend on several situations. Insurers look at several factors to derive a value for each policy, including:
- Mileage: If vehicles travel long distances daily, they cost more.
- Vehicle Ownership: Whether the vehicle belongs to the company or is rented.
- Driver History: Drivers with a history of accidents generally pay more.
- Location: Areas with a higher rate of accidents or crime leave the cost higher.
- Year of Manufacture and Model: Newer or higher-value vehicles have higher costs.
- Type of Profession: Professions that involve more risks and can influence the price.
- Chosen Coverage and Limits: The most complete plans are more expensive, but they offer more protection.
Why Do You Need Commercial Car Insurance?
Nowadays, having commercial car insurance is a smart way for companies to avoid losses. This type of protection covers losses such as accidents, natural disasters, theft or damage.
Insurance, in addition to protecting company vehicles, also covers employees against lawsuits and third-party medical expenses, avoiding financial and reputational problems.
Tips for Choosing the Right Commercial Car Insurance
Therefore, here are some important points to find the right insurance for your commercial vehicle:
- Assess Your Coverage Needs
Before choosing, it is important to evaluate the needs of the company and the vehicle. For example, cargo vehicles may benefit from additional coverage for the items transported. - Compare Quotes from Different Insurance Companies
Research insurance companies and compare quotes. Commercial insurance companies can offer options in terms of cost and benefit. - Consider Bundling Policies
Many insurance companies may offer discounts to businesses that combine different policies, such as car insurance, building insurance, and other business insurance. Therefore, this practice can be used in an economy. - Review Policy Limits and Deductibles
It is important to review coverage limits and amounts. Higher coverage and lower deductibles mean more security, but can increase the cost of your premium.
Conclusion
However, choosing the best insurance for your vehicle is to protect both the company’s assets and employees. By evaluating your business needs, the types of coverage available, and doing market research, you can ensure your vehicle is protected.
This way, your company can focus on what is really important: continuing to grow and serving your customers with quality and safety.
