Everything you need to know about insurance basics, like coverage types, limits, cost and more.
Commercial Automobile Insurance
We know the sweat, hard work and passion you put into bringing your entrepreneurial dreams to life every day. Our commercial vehicle insurance is built for this, with special coverage that takes care of you, your employees and your bottom line when your business is on the move. From protecting business vehicles, to giving you confidence for accident-prone operations like loading and unloading, we offer a number of ways to protect what you’ve worked so hard for.
What Is Commercial Vehicle Coverage?
Commercial auto and vehicle coverage provides insurance protection for your business vehicles like the way your personal auto insurance protects your personal vehicle. From liability and property damage protection, to covering theft and damage, this coverage financially protects the vehicles that drive your dreams forward.
Commercial auto coverage can vary from one insurance company to the next, so it’s important to understand the details of the policy. For instance, some insurance carriers will offer policies that can be tailored specifically to a given industry, like general contractors. Policies are typically scaled according to the size of the business seeking coverage. Here are some examples of commercial vehicle coverage:
- Real estate sales teams where a pool of drivers share company-owned vehicles
- Landscapers and snow plow service trucks where policies specify dedicated drivers and vehicles
- Carpenters, electricians and contractor companies
What Kinds of Vehicles Need Commercial Insurance?
Simply put, if your vehicle is used for your business (other than commuting), you’ll need a commercial auto insurance policy to insure it’s properly protected on the road. These are a few types of vehicles that can be covered by a commercial auto policy:
- Pick Up Trucks
- Box trucks
- Light SUVs
If you’re using a vehicle to conduct your business, it should be covered with commercial vehicle insurance. Your American Family Insurance agent can help find the right coverage for you if you aren’t sure whether your vehicle needs a personal or commercial auto insurance policy. Keep in mind that if the business is a separate legal entity such as an LLC, corporation, etc, the vehicles should be titled in the name of the business.
What Does Business Auto Insurance Coverage Include?
Commercial vehicle insurance provides similar coverage to that of your personal auto insurance. There are several types of coverages that may be included in your commercial auto policy, as well as other optional coverages you can purchase. Your agent will work with you to customize a policy that fits your specific needs.
Some common coverages include:
Bodily injury liability coverage
Covers bodily injuries resulting from a covered accident for which you are at fault.
Property damage liability coverage
Helps pay for damages to someone else’s auto or other property if you’re found at fault for the accident.
Helps pay for damage to your commercial vehicle caused by a collision regardless of who is at fault.
Covers your vehicle from direct or accidental damages in non-collision situations, like vandalism, theft, fire, wind, hail or an animal strike.
Medical Expense coverage
Pays for medical expenses for you, your employees or passengers sustained in a covered auto accident.
Uninsured and underinsured motorist coverage
Helps pay for bodily injury and vehicle damages resulting from an accident caused by uninsured motorists or underinsured motorists.
Loading and unloading coverage
Provides liability protection if damage is sustained when loading or unloading property from a covered vehicle, excluding the cargo being moved.
You can fine tune your coverage with optional insurance as well:
- Special equipment / attached equipment such as cargo racks, lifts, etc.
- Hired and non-owned liability insurance
- Hired auto physical damage and/or hired auto collision insurance
Towing and labor coverage
Pays for towing and labor if your commercial vehicle breaks down, even if there isn’t an accident.
Frequently Asked Commercial Vehicle Insurance Questions
Got questions about commercial vehicle insurance? We’ve got answers:
How much does it cost to insure a commercial vehicle?
Costs can vary based on driving records and selected coverage options among other factors. The insurance rating of those named on the policy, the zip code where the vehicle is registered and the estimated amount of miles driven annually will have an impact on the commercial vehicle’s premium. One factor that can directly impact the cost of the policy is the deductible you choose.
What’s the difference between commercial and personal auto insurance?
Both policies can help cover the cost of repairs and medical bills after an insured loss. But commercial policies typically cover vehicles that will see more miles annually, and the policy may cost more due to the increased risks vs. the risks associated with a personal auto insurance policy.
Does my personal auto insurance cover business use?
Most personal auto policies will cover some business use of your vehicle. But if the vehicle is solely used for business, you may not be covered under a personal car insurance policy.
Need Additional Coverage for Your Business?
American Family Insurance agents are small business owners in your community, just like you. Find your agent today. We’re here to support your business dreams. American Family has a protection plan for your business. Learn more about our available commercial coverages and keep your dreams in drive.