Commercial auto insurance, also known as commercial vehicle insurance, it’s a type of protection specifically designed for vehicles used for business purposes. It provides coverage for your employed drivers and passengers’ injuries, loading and unloading liability for transporting products, and replacement vehicles for cars being repaired, among other things.
Here at Quesurance, we offer auto insurance quotes in New Jersey and the surrounding areas to help businesses reduce risk, protect employees, and cover business vehicles.
In this article, we will share five key factors to consider when getting commercial auto insurance for your business:
1. Vehicle owner or operator
When it comes to commercial auto insurance, you must first ask yourself who owns and operates the car. This question is crucial as it will determine which auto insurance package to get. For instance, you don’t need to get one if you’re a sole proprietor who owns a business and operates your car, as your personal insurance policy will suffice. However, if you have a growing business with a driver using your company’s vehicle, you may need to obtain this insurance if any emergency situation happens.
2. Frequency of vehicle use
Another key consideration is how often your drivers use your company’s vehicles for business purposes. The chances are that these cars or trucks are driven to deliver goods and materials, carry tools and equipment, or transport employees and customers. If you think that your vehicles are regularly used, you may need to get robust insurance protection as the possibility of an accident is higher!
3. Type of vehicle
Checking the type of vehicles your company uses is crucial in helping you determine the best auto insurance package for your needs, whether it is cars, vans, or trucks. For instance, a Heavy Goods Vehicle (HGV) may have extensive damages if your employee gets involved in an unexpected vehicle accident. Because of this, you may need a broader coverage that is best suited for this type of vehicle.
4. Personal use of vehicle
It’s wise to ask yourself if you’re using the vehicle for personal use. In most cases, commercial auto insurance doesn’t cover vehicles that are utilized for your personal transport. However, you may ask your insurance agent if this option is possible before taking the plunge into getting particular insurance. The last thing you’ll ever want to happen is to immediately assume you’re covered for personal usage, only to find out later on that you’re not!
5. Auto insurance cost
As with any insurance policy, you’ll have to pay a certain premium based on the type of coverage you’ll get. After considering the factors above to know the type of insurance you need, it’s time to shop around and compare their premium rates. Of course, you’ll most likely opt for the lowest premium. However, you must ensure that it reflects the type of coverage you need for your commercial vehicle, as the cheapest might not always equate to the best service provided!
Conclusion
At this point, you now know five factors to consider when shopping around for commercial auto insurance—vehicle owner or operator, frequency of vehicle use, type of vehicle, personal use, and auto insurance cost. With all these in mind, you’ll be able to make the right insurance selection and decision to benefit your business, protect your company’s vehicles, and keep your employees financially secure!
As an insurance company in New Jersey, we offer a wide range of insurance options, whether auto, home, business, or flood insurance. If you’re looking for a reliable commercial auto insurance for your business, be sure to connect with us today to get a quote!
