As careful as you and your drivers might be, any single one of your commercial fleet might still be involved in an accident. That’s why you need commercial vehicle insurance to ensure that your company is protected from financial risks that come with such accidents.
Unfortunately, many fleet owners still do not understand how commercial vehicle insurance works and what it covers.
In this post, Quesurance, one of the most trusted insurance companies around New Jersey, focuses on the basics of this type of insurance to better prepare those in this industry from potential financial problems caused by accidents:
How Commercial Vehicle Insurance Works
Commercial vehicle insurance works by giving you insurance coverage for your commercial vehicles against various types of losses and damages. These can vary from physical damage and injuries to third-party property and assets.
A policy may already include coverage for standard parts of an accident such as bodily injury, medical expenses, and vehicle damage. However, you might find yourself needing to buy additional coverage for other losses such as damage to the cargo carried in the vehicle, lost income, and legal defense costs.
When it comes to vehicle damage and losses, there are two main coverage options you can choose from – collision and comprehensive.
Collision covers vehicle damages caused by an object or another vehicle collision. On the other hand, comprehensive covers a wide range of losses that don’t have any relation to a vehicle collision. This can include damages caused by natural disasters, vandalism, and even installing a new transmission.
Critical Differences Between Owning and Operating a Commercial Vehicle
This is where understanding the difference between owning and operating a commercial vehicle comes in.
In terms of ownership, here’s the main difference between operating commercial vehicles and other personal vehicles:
With the latter, you’re the only one driving it.
Your auto insurance might cover you up to the limits when driving your car, but that’s not the case when you are driving a commercial vehicle. The reason for this is that your commercial vehicle insurance policyholders are your business, your employees, and your drivers.
If you are an owner-operator, you will need to ensure that your business owns the commercial vehicle and that you and your drivers are included in its commercial vehicle insurance policy. What’s more, you will be required to have your auto insurance policy.
What Is the Cost of a Commercial Vehicle Insurance Policy?
If you’re a new business owner, it’s natural to be concerned about the cost of a commercial vehicle insurance policy.
With your business so young, especially if you are just starting, you might find it hard to believe that you can afford it.
But you might be surprised to find out that your business can manage to afford the cost of a commercial vehicle insurance policy. Here’s why:
The cost of this type of insurance depends on the type and value of your commercial vehicle. For example, commercial truck insurance costs can vary from one business owner to another.
The best thing to do is to shop around and compare the cost of commercial vehicle insurance quotes among different insurance companies. With the help of an insurance broker or agent, you can identify insurers offering the best rates for your commercial vehicle insurance.
What Type of Commercial Vehicle Insurance Is Right for You?
There are three basic types of commercial vehicle insurance that you can choose from:
General Liability Insurance
This type of insurance is designed to protect your business from third-party liabilities if your vehicle causes harm to third-party property or assets such as car accidents or cargo loss.
This is the most basic type of commercial vehicle insurance coverage, and it is recommended for most businesses.
Commercial Auto Insurance
In addition to general liability insurance, this type of commercial vehicle insurance is also suitable for owners and operators of a single-vehicle. If a car is used for personal and business purposes, this type of insurance will also ensure that your business is covered for damages caused by that vehicle.
However, if you own a fleet of commercial vehicles, you might find that tracking and managing multiple policies is too much of a hassle. This is why having a business policy for your fleet of commercial vehicles is a smarter move.
Truck Insurance
Truckers who drive trucks with large and heavy loads can buy this type of insurance to cover the potential damage or losses caused by the cargo.
Conclusion
You should now have a better understanding of how commercial insurance for vehicles works and the different types of coverage you can choose from.
For more information about commercial vehicle insurance, you can reach out to a local insurance broker or agent to learn about the best package that’s perfect for your business.
Quesurance is one of the most reliable insurance companies in Hopatcong and nearby New Jersey communities that can help protect your fleet. Contact us today to learn more about commercial vehicle insurance!
