Your commercial auto specialists in California
Types of Vehicles Commercial Auto Insurance Covers
Commercial automobile insurance is a broad term that refers to most commercial business automobiles, including but not limited to:
- Company cars
- Cargo Vans
- Limos
- Taxis
- Buses
- SUVs
- Pickup trucks
Commercial auto policies may cover personal cars that are used for business, as well as SUVs, light duty trucks, buses, limousines, taxicabs, vans and other delivery vehicles used solely for business purposes.
Use of these automobiles is associated with a range of risk factors, including how you use them, how often, and how many miles they travel each year, among other factors. Insurance companies review these risk factors along with any efforts your company may make to improve driver safety, when they assess the amount of coverage your business needs.
If you are looking for coverage information on large trucks and heavy equipment used for business purposes, refer to the commercial truck insurance section.
Does Commercial Auto Insurance Cover Personal Use?
Small business owners and entrepreneurs often use their own cars while on the job without a second thought. However, it is important to know that your personal insurance may not cover commercial use of your auto.
It’s very common for a small business owner to send an employee out on an errand, whether to get supplies from the local store or to give a business consultant a ride from the airport.
If the staff member gets behind the wheel of his own car, and the business owner does not have a commercial auto insurance policy in place that covers that worker and his car, any injuries or damage that result from an accident may not be covered.
Regardless of how much or how little you and your employees use personal vehicles in the course of doing business, getting adequate coverage in place can prevent a financially damaging event from putting your business at risk.
An independent agent like us, can provide all of your commercial coverage through one office. We can sit down with you, get to know your business, and learn how you and your employees use your business automobiles.
We’ll ask a variety of questions designed to not only get you an accurate quote, but also find discounts that may be available to you.
You may be asked questions such as:
- How many commercial automobiles do you have?
- How are those vehicles used? For example, do they transport people, goods, hazardous materials, or food?
- How many miles does each vehicle typically travel in a year?
- How many drivers do you have?
- What are their ages and level of experience?
- Have your drivers taken a safe driving course?
If you’re in the market for commercial auto insurance, or if you have coverage already but aren’t sure it’s comprehensive or competitively priced, we’ll give you an open and honest assessment of your coverage to determine whether or not you can do better.
Get started on your commercial quote
Zeyger Insurance can help if you have motor carrier insurance with a radius of operation restriction of up to 500 miles and find you the carrier you need. We help with some carrier restrictions that provide superior motor carrier coverage products and services for regional and local trucking businesses.
Commercial Auto Insurance FAQ
Picture this: You’ve built your dream landscaping business, complete with a fleet of trucks, trailers, and specialized equipment. Or perhaps you’re a freelance photographer, using your personal SUV to haul gear to client shoots. In either scenario, you’re not just driving; you’re operating a vital component of your livelihood. This is where the often-misunderstood world of commercial auto insurance steps in. Many small business owners make the mistake of assuming their personal auto policy will cover accidents that occur while on the job. It’s a common, yet potentially catastrophic, oversight that can lead to denied claims, significant out-of-pocket expenses, and even business closure. Think of commercial auto insurance not as just another expense, but as a robust shield, protecting your assets, employees, and reputation from the unexpected. This guide will cut through the jargon, illuminate the critical differences between personal and commercial coverage, and equip you with the knowledge to make informed decisions. We’ll explore who needs it, what it covers, how costs are determined, and strategies to secure the best protection without breaking the bank. Your business deserves to drive with confidence.
Frequently Asked Questions
FAQ: What is commercial auto insurance?
Commercial auto insurance provides financial protection for vehicles used in business operations, covering damages, injuries, and legal costs arising from accidents or other incidents It’s designed to protect businesses from the higher risks associated with commercial use, which are often excluded by personal auto policies. This specialized coverage ensures your company’s assets and reputation are safeguarded when vehicles are integral to your operations. Policies can be tailored to various business sizes and vehicle types, from a single van to a large fleet. It is a critical component of a business’s overall risk management strategy.
Real Results: A small delivery service faced a $150,000 lawsuit after one of its vans caused an accident; their commercial auto policy covered all legal fees and settlement costs, preventing financial collapse.
Takeaway: Secure commercial auto insurance to protect your business’s financial stability from vehicle-related liabilities and damages.
FAQ: Who needs commercial auto insurance?
Any business that uses vehicles for work-related purposes, whether owned or leased, generally needs commercial auto insurance to protect against specific business risks. This includes companies with delivery vehicles, service trucks, sales fleets, or even individuals using their personal car for client visits or product transport. Even if you only use a personal vehicle infrequently for business, it’s crucial to consult an insurer, as personal policies typically exclude commercial use. State laws and contract requirements often mandate this type of coverage, making it a legal necessity for most enterprises.
Real Results: A catering business owner used her personal SUV for deliveries and had a minor accident; her personal insurer denied the claim due to commercial use, costing her $8,000 in repairs out-of-pocket.
Takeaway: If your vehicles touch business operations, get commercial auto insurance—even if it’s just your personal car.
FAQ: How does commercial auto insurance differ from personal auto insurance?
Commercial auto insurance provides higher liability limits and specialized coverages specifically tailored for the increased risks and complex scenarios associated with business vehicle use, unlike personal auto insurance. Personal policies are designed for private use, with lower liability ceilings and exclusions for commercial activities, such as transporting goods or clients for a fee. Commercial policies often account for multiple drivers, different vehicle types (e.g., trucks, vans, specialty vehicles), and endorsements for specific industry needs like cargo coverage or non-owned vehicle liability. The fundamental difference lies in the scale of risk and potential financial exposure covered.
Real Results: A contractor’s truck, insured only on a personal policy, was involved in a serious accident; the insurer denied the resulting $750,000 liability claim because the vehicle was used for work, leading to devastating legal fees.
Takeaway: Commercial policies address business-specific risks and liabilities that personal insurance won’t cover, making them distinct and essential.
FAQ: What are the key components of a commercial auto insurance policy?
Key components of a commercial auto insurance policy typically include liability, collision, comprehensive, and uninsured/underinsured motorist coverage, mirroring personal policies but with commercial-grade limits and provisions. Liability coverage protects against damages and injuries you cause to others, while collision covers damage to your own vehicle from an accident. Comprehensive coverage handles non-collision events like theft, vandalism, or natural disasters, and UM/UIM protects you from drivers with insufficient or no insurance. Additionally, many commercial policies include options for medical payments, towing, rental reimbursement, and specialized endorsements like cargo coverage or hired/non-owned auto liability.
Real Results: After a tree fell on a landscaper’s work truck, his comprehensive commercial auto policy covered the $12,000 in repair costs and provided a rental, ensuring his crew could stay on schedule.
Takeaway: Understand your policy’s components to ensure robust protection for your vehicles and business operations.
FAQ: What is liability coverage in commercial auto insurance?
Commercial auto liability coverage pays for damages and injuries that your business vehicles or drivers cause to other parties in an at-fault accident, including property damage and bodily injury. This coverage also typically covers your legal defense costs if you’re sued. It’s a fundamental and often legally mandated component of any commercial auto policy, designed to protect your business’s financial assets from the potentially enormous costs associated with severe accidents. Without adequate liability coverage, a single serious incident could bankrupt a company, making it the bedrock of commercial auto protection.
Real Results: A plumbing company’s van caused a multi-car pileup, resulting in $1.8 million in damages and injuries; their $2 million liability policy absorbed the costs, preventing a massive financial hit to the business.
Takeaway: Prioritize robust liability coverage to safeguard your business from substantial financial and legal consequences of at-fault accidents.
