3 Benefits of Investing in Commercial Auto Insurance

 

There were over 150,000 treated injuries resulting from commercial truck accidents in 2021 alone.

If you own a company with one or more commercial vehicles on the road, you should have commercial auto insurance. You've got too much to lose to let your drivers hit the road without it.

In this post, we're going to explain some of the benefits of this type of commercial insurance. There are obvious ones and less obvious ones, so keep reading to find out what they are.

1. You Get Full Coverage

When you get commercial insurance of this nature, you get complete coverage for all scenarios. It is commercial general liability insurance, commercial property insurance, and commercial business insurance all wrapped up in one policy.

Beyond the obvious coverage for actual accidents, you'll be covered against damage from natural disasters, floods, break-ins, and vandalism. All of this is essential coverage because these types of events have the power to stop your business' revenue in its tracks.

With comprehensive coverage, you can continue operating as before without major financial loss. 

2. You'll Be More Creditworthy

In owning a business, there's a good chance you'll have to apply for small business loans at some point. Lenders are always going to look into a variety of factors before issuing you a hefty loan. One of these factors will be the types and levels of insurance that you carry.

So, if you're looking for a loan for a new commercial vehicle to add to your fleet, the insurer will want to know that you carry enough insurance to pay for damage or replacement. If you have a good policy with comprehensive coverage, you'll be able to take out loans more easily than if you have a lesser policy or no policy at all.

3. Roadside Services

Running a company where your fleet of vehicles plays an integral role in how you make your money means that any vehicle breakdown can be devastating. Unfortunately, your reliance on your vehicles doesn't preclude them from having mechanical issues or flat tires.

Many commercial auto insurance policies include coverage for roadside and towing assistance. If one of your drivers is ever stranded on the road, you shouldn't have to pay out of pocket to get them moving again. This gives you peace of mind knowing that your vehicles will be looked after regardless of the situation.

It's Time to Get Commercial Auto Insurance

Now that you know some of the biggest benefits of commercial auto insurance, you can find the right policy from the right insurer. At Tom Needham Insurance Agency, we're always looking out for the best interest of North Carolina's small businesses.

What your commercial auto insurance policy looks like will depend on a number of factors. If you want to learn more about how it works and what you should include in your policy, contact us today to book a consultation with one of our knowledgeable insurance professionals.

Choosing Commercial Auto Insurance

 

The rules regarding commercial auto insurance in North Carolina can be somewhat confusing to the layman but one thing is easy to understand - if your business owns a vehicle, you're required to carry commercial auto insurance.  Whether it's one vehicle or a hundred, personal auto insurance won't work if the vehicles are owned by the business.  Personal vehicles are different.  Using a personal vehicle for work purposes may be okay with personal auto insurance coverage under certain circumstances.

Personal Car or Commercial Vehicle?

For small business owners, the line between what's business and what's personal can be fuzzy.  If you drive your personal vehicle for business purposes at times and you carry personal auto insurance coverage, it's important that you understand how your insurer defines commercial use of your car or truck.  Your insurer should also be aware of the ways that you use your vehicle.

If you're driving a personal vehicle covered by a personal auto insurance policy and cause/incur any damages, your insurance company may deny a claim if they determine the vehicle was being used for business purposes.  An example of this is personal cars being used for rideshare operations such as Lyft or Uber.  If you use your vehicle for any business-related purposes, your insurer may consider it as a commercial vehicle.  It's best to check with them and let them know what your activities include.

Here are some examples of personal car use that an insurer may consider business use:

• Providing a service for which you're paid a fee
• Picking up or delivering goods of any type
• Visiting clients at their locations

Your vehicle may also be considered a commercial vehicle if: 

• The named owner on the title is a business
• The vehicle is rented to others
• The vehicle is driven on a consistent basis by you or others for both personal and business purposes

Commercial Auto Insurance Costs

A variety of factors may influence the cost of your commercial auto insurance.  These include:

• Specific coverage needs, including the minimum amount of liability coverage required by law for specific vehicle(s).
• Where your business is located plays a role in premium costs.  Larger cities will usually require higher premium costs than small towns.
• Type of business is a factor.
• Types of vehicles are important.
• Driving history of vehicle operators factor in to policy costs.
• The extent of your vehicles' travel radius affects premium costs.