Commercial Auto Insurance

Companies using vehicles for business purposes need commercial auto insurance to help provide financial protection. Commercial auto insurance requirements vary by state, but in most areas of the United States, minimum auto liability coverage is required to comply with state laws.  

Contact All Things Comp today to learn more about your company’s commercial auto insurance options.  

What Is Commercial Auto Insurance? 

Commercial auto insurance is a collection of highly customizable coverages designed to provide financial protection for an organization’s risks and exposures. Depending on your situation, some coverages may be required.  

How Does Commercial Auto Insurance Work? 

Your company’s commercial auto insurance plan helps provide financial protection after an accident, as detailed in the policy’s declarations. The following policies may be required: 

• Commercial auto liability insurance helps pay your company’s legal liability for third-party property damage and bodily injury after an accident. Most states impose minimum limits on this coverage, but your agent may recommend that you purchase more than the minimum required amount to provide adequate financial protection. 
• Commercial auto collision and comprehensive coverage help pay to repair or replace a covered company vehicle after an accident or incident causes damage. Your lienholder requires these policies, often referred to as full coverage insurance, to help protect their investment.  

Some states require businesses to purchase commercial auto policies to help cover medical costs after a covered accident. Depending on where your business is located, the following policies may be required or optional: 

• Personal injury protection (PIP) helps pay for injuries sustained by the driver and passengers during a covered accident. This coverage may also help cover lost income, funeral expenses and loss of essential services. 
• Medical payments (MedPay) helps cover accident-related medical costs for the driver and passengers, including copays and deductibles for PIP and health insurance.   

Your agent may recommend that you purchase other policies and endorsements to tailor your company’s commercial auto policy, including the following:  

• Gap coverage helps pay the difference between the total amount your company owes to a lienholder and your insurer’s settlement after a covered accident when the vehicle is a total loss. Your lienholder may require this coverage. 
• Hired and non-owned auto insurance (HNOA) helps provide coverage for privately owned, leased or rented vehicles used for business purposes. 
• Rental reimbursement helps cover the costs of renting a vehicle to allow for repairs after a covered accident. 
• Uninsured and underinsured motorist coverage helps pay for the other driver’s legal liability if you sustain property damage or injuries in an accident.  

Your agent can help you understand which coverages and endorsements may be most appropriate for your situation. 

Who Is Insured Under a Commercial Auto Policy? 

The Business Auto Coverage form included with your policy paperwork details who is insured under your company’s commercial auto policy. Insured drivers may include:  

• You, the named insured or the person listed in the policy’s declarations 
• Permissive users, which is anyone driving a covered vehicle who also has permission 
• Omnibus insureds, which is anyone operating a covered vehicle with the policyholder’s implied or express consent  

When Do You Need Commercial Auto Insurance? 

Depending on your state’s rules, your company may be required to purchase minimum amounts of commercial auto insurance and provide proof of appropriate insurance when registering a vehicle. Contact your agent immediately if you are unsure whether your company needs commercial auto insurance. They can help evaluate your situation and ensure you have appropriate business insurance coverage.  

Contact Us 

Contact All Things Comp to get personalized quotes for commercial auto insurance policies.