What To Consider When Shopping For Commercial Auto Insurance Policy

Posted on: 19 September 2022

Your personal auto insurance policy won't be sufficient if you have a vehicle you use for your business. In this case, you will need to get a separate policy, that is, a commercial automobile policy. You may not have a fleet of trucks, but you still require this coverage for vans and even personal cars that you may routinely use for business functions.

While shopping for this type of auto insurance policy, here are a few things to keep in mind to ensure you get the best deal.

1. Know the Coverage Options 

Much of the coverage options you will find with a commercial auto insurance policy reflect what you get with a personal policy. Think bodily injury liability, property damage liability, comprehensive cover, collision insurance, uninsured motorist coverage, and personal injury protection. An agent from the auto insurer can share more details on what each entails.

As with any other insurance policy, you want to avoid the mistake of not having enough coverage. For instance, if you go for minimum coverage, you will end up paying so much more out-of-pocket in the event of an accident.

2. Don't Forget Non-Owned Vehicles

As a business, you may occasionally need to use vehicles you don't own. A good example is when an employee gets a rental to facilitate moving around during an out-of-town business trip. In the unfortunate event that said employee gets involved in an accident, you may be held liable for associated costs. For this reason, you should speak to your insurance carrier about whether the commercial auto insurance policy you purchase provides such coverage and the limits.

3. Understand Your Unique Risks

The type of business you are in, your business location, the type of vehicles you use, and more go into defining your unique risk profile. Every business is unique, and these factors will help the insurer to determine the rates for your commercial auto insurance policy. Assess these unique risks and be upfront with the insurer when filling out your application for the commercial automobile policy.

4. Understand Driver History

Who will be driving your business vehicles, and what does their driver history look like? Keep in mind that the driver's history will impact your commercial auto insurance policy premiums. As a business, make a point of hiring employees with better driver histories. Additionally, invest in continual training on road safety for your drivers.

Price shopping and comparing quotes are the easy part. However, you must first understand your needs as outlined before you even start comparing prices for the best commercial auto insurance policy.