Nearly 20% of commercial autos are involved in accidents every year. That’s 2 out of 10 businesses that will have an employee, or a business owner, involved in commercial auto collisions every year. Those statistics are a perfect example of why your business needs commercial auto insurance.

You Need to Know the Basic Elements of a Commercial Auto Policy

When you are looking into vehicle insurance coverage for a business, it is vital that you understand a commercial auto policy’s basic elements. The more information you have on the subject, the easier it will be to compare coverages. Speaking with commercial auto insurance providers will also help you make an educated choice.

What Is the Definition of Commercial Auto Insurance?

Commercial auto insurance Arizona businesses depend on includes a variety of coverages for a wide range of vehicles used by a business. Commercial auto insurance providers will discuss every part of commercial auto insurance with you including the type of coverage and how it protects your business. The basics of a policy are described below.

There are three parts to a commercial vehicle insurance policy. The first is physical damage insurance which includes comprehensive and collision coverage. The second is liability insurance that offers coverage for property damage, bodily injury, as well as underinsured and uninsured motorist coverage. The third element is other types of coverage for medical payments, rental reimbursement, towing and labor, and lease gap or auto loan coverage.

What Does Collision and Comprehensive Insurance Cover?

Collision coverage pays for any damage sustained when another vehicle hits you, if you hit another vehicle, or your vehicle rolls over. The damage is paid for regardless of who caused the accident. Typically, collision coverage is required if you still lease or are financing vehicles for your business.

Comprehensive insurance coverage is put in place to protect a business’ vehicles if they incur damage due to a cause other than a vehicular accident. Some of those causes may include flooding, theft, earthquakes, vandalism, damage sustained from animals, or fire. Commercial auto insurance providers will fully explain how this coverage works if you have any questions.

Understand the Importance of Liability Insurance

Commercial auto insurance carriers can help you understand the liability portion of an insurance policy. It covers property damage to other vehicles as well as bodily injury if you are at fault for an accident. Liability will pay for bodily injury including lost wages, medical costs, and legal expenses for you if a lawsuit is brought against your business.

Underinsured and uninsured motorist coverage is part of a commercial auto insurance policy that falls under liability. Underinsured coverage protects you if another driver is at fault and does not have enough liability insurance to cover your business’ bills.

Uninsured coverage will pay for your property damage or injuries if you have been hit by a driver that is uninsured. In some states, this may also include unidentified drivers. A commercial auto insurance provider will make sure you have enough liability protection that fully protects your business.

Invest in Other Options and Add-Ons

Endorsements, or other options and add-ons can be added to the basic components of business policies. They are meant to provide additional coverage. Some of those coverages may include:

• New Vehicle Replacement Coverage
• Roadside Assistance
• Rented or Leased Auto Physical Damage with Loss of Use Coverage
• Expanded Towing
• Auto Lease or Loan Coverage
• Personal Injury or Medical Payments Protection Coverage
• Rental Reimbursement

Commercial Auto Insurance Providers Help Protect Your Business

Commercial auto insurance providers know how to protect your business with the right insurance coverage. They understand you need to keep your costs as low as possible. That’s why it is important to work with top commercial auto insurance providers that can offer you many quotes that will fit your budget. Get a free quote from them today.