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Commercial Auto Insurance

What it is:

This is an insurance plan that protects commercial vehicles such as trucks, buses and transit vans. Whether there is an accident on the road or a natural disaster, owners of commercial vehicles can receive the appropriate compensation to make repairs and restorations.

Who it is for:

This type of insurance is usually purchased by businesses and organizations that own or lease some sort of commercial vehicle. The Gross Vehicle Weight Rating (GVWR) is an important factor that determines if an automobile has commercial status. Only drivers who have a commercial driver’s license can be officially written on an insurance policy for commercial vehicles. Therefore, some businesses owners without a valid license don’t always have the right to actually operate their own fleets that are insured.

How it works:

In order to register a commercial vehicle for this sort of insurance, an official title or lease document must be presented to the insurance agency. Commercial vehicles must also pass rigorous state and federal inspections before they are allowed to share the road with other motorists. Insurance agencies want to ensure that bulky vehicles that are used for commercial purposes don’t carry high risks. In some instances, the insurance agency can refuse to insure a vehicle that’s too old or has excessive mechanical issues.

Different Types of Coverage in Existence

Liability insurance protects drivers and passengers who are involved in an accident between a commercial vehicle and other automobiles or pedestrians. This particular plan pays for medical bills that are compiled from treating injuries relating to crashes. Collision insurance can be used to repair the chassis, body and mechanical components of commercial vehicles that have been involved in crashes. Comprehensive insurance provides coverage for damage that results from extreme weather, fire and other problems that aren’t related to accidents with other vehicles.

Major Benefits

Businesses and organizations that have their own fleets can benefit greatly from buying commercial auto insurance. Trucks and buses are quite expensive fix after accidents, but this type of insurance offers sufficient compensation for major repairs. Insurance for commercial automobiles can also cover freight loads that are transported over long distances.