5 Myths About Commercial Auto Insurance

There are a lot of factors to consider when buying from commercial auto insurance carriers. The following are five myths about commercial auto insurance.

There are a lot of factors to consider when buying auto insurance premium packages from commercial auto insurance carriers. Unfortunately, there are a ton of myths about commercial auto insurance that can lead you astray. You should be able to distinguish facts and myths about auto insurance. The following are five myths about commercial auto insurance.

1. Color Impacts Auto Insurance Prices

A common myth about auto insurance is that color affects the price of auto insurance. This is not true. Color doesn't affect your auto insurance costs. The price of an auto insurance policy is based on multiple factors, including car model, engine size, age, purchasing price, and cost of repair.

2. Your Credit Score Doesn't Affect Auto Insurance Rates

Many people believe that auto insurance rates are independent of their credit score. The fact is that your credit score affects auto insurance rates because it reflects your financial stability. In most cases, commercial auto insurance providers look at your credit score before giving you a car insurance policy.

3. Private Auto Insurance Policy Covers Both Personal and Commercial Incidents

Another common myth is that private auto insurance covers both personal and commercial vehicles. Your private auto insurance policy will only cover your personal vehicles and not commercial ones. Similarly, commercial auto insurance will only cover commercial vehicles and not private ones. It would be best to have both private auto insurance and commercial auto insurance to cover all your vehicles.

4. Another Person's Insurance Will Cover Car Damages If They Were Driving in the Event of an Accident

You may have heard that if another person is driving your commercial vehicle in the event of an accident, then their auto insurance coverage will be the one to cover the damages. This is a myth. Your commercial insurance is your primary insurer, implying that it must pay for damages incurred by you during an accident, irrespective of who was driving during the event.

5. Older People Pay More

Older people do not pay more than young people. In fact, older people may be qualified for special insurance discounts. These discounts vary from one state to another. Be sure to ask your commercial auto insurance carriers about any special discounts.

About 4,119 people died in large truck crashes in 2019 (per the IIHS). Don't be a statistic. Apply for commercial auto insurance coverage to protect your vehicles, employees, and third parties. Selecting the right commercial auto insurance carriers will ensure you get the best insurance coverage for your commercial vehicles.