When you drive a car for business, your business has a monetary investment in you and that vehicle. Therefore, the standard coverage provided by personal car insurance usually is not adequate for business-owned or operated vehicles. Businesses will likely need to insure the vehicle with commercial auto insurance, which can address those needs more appropriately.

Numerous vehicles might need commercial auto insurance, including:

• Vehicles owned by a business (including cars given to employees)
• An employee's personal vehicle that they use regularly for work
• A privately-owned and privately-used commercial-grade vehicle

With coverage, both businesses and employee drivers receive coverage in cases of accidents, vehicle damage and harm done to others. Therefore, both can overcome challenges effectively.

Commercial auto insurance contains coverage limits that are higher than those necessary for a private car. Policies will also contain a few additional perks to apply to business-specific driving risks.

The coverage within commercial auto insurance can include:

• Liability Insurance: Also called at-fault car insurance, this coverage can pay on the business' behalf if a driver causes a wreck that causes injuries or property damage to others (such as a driver in another car). Texas requires most drivers to carry liability policies.
• Comprehensive Damage Insurance: If a vehicle gets damaged from such hazards as fires, weather, collisions with animals, theft or vandalism, this coverage can pay for the vehicle repairs.
• Collision Insurance: If you hit another car, building or pothole while driving, this coverage can pay for your vehicle's repairs.
• Uninsured/Underinsured Motorist Coverage: Another driver might hit your vehicle, but they might not have enough liability insurance to pay for your losses. You can file against this coverage for your own losses.
• Medical Payments Insurance: Insured drivers and their passengers can receive coverage for their medical costs if they get hurt in wreck. Please note, this coverage does not replace or eliminate the need for a business to have workers compensation insurance.
• Non-Owned Vehicle Liability Coverage: Even if an employee drives their personal car for work, the business could be liable for an accident. This coverage can extend commercial auto coverage to the vehicle, and the business can thus insure its own risks in the deal.

Policies might also offer roadside assistance, towing, rental vehicle and replacement cost coverage. Your Consolidated Insurance Markets agent can help you determine the appropriate coverage limits, deductibles and special endorsements you might need on your policy.

Numerous factors might impact the value of your commercial auto policy. These might include the types of vehicles you insure, how much coverage you buy, the driving records of all insured drivers, and how you will use the vehicle. For example, a commercial car policy might cost between $1,200 - $2,400 per year, while coverage for a taxi might cost between $5,000 - $10,000, according to Trusted Choice.

 

Generally speaking, commercial auto policies cost more than personal policies. There's more money invested in commercial driving, and policies include more coverage. Therefore, costs tend to be higher.

Most commercial auto policies will insure vehicles driven on personal time. If your employer lets you drive your company car home, for example, then a commercial policy can still apply.

Personal policies likely won't apply to commercial vehicles, even if you drive a personal car for business. Therefore, if you plan to use a personal car for business, you might have to buy a commercial auto policy yourself. Or, your company might be able to insure you with a non-owned vehicle endorsement.

To get the appropriate commercial auto insurance, you'll need your policy to address all your operating risks with appropriate limits. Let Consolidated Insurance Markets help you get the perfect coverage for your needs.

Call us at (972) 459-1995 or get an online quote now!