Why Do You Need Commercial Auto Insurance?

 

Commercial vehicle insurance offers protection against physical damage and third-party liability against situations, amounts, and usages that are not covered under a personal auto insurance policy.

Commercial vehicle insurance covers a wide range of vehicles—from different automobiles that are used for business, including the cars used by companies, to a wide range of commercial trucks engaged in strenuous jobs. These vehicles also require ample coverage for employees who operate the vehicle plus the equipment inside.

A number of specific business usage and vehicle types are generally excluded from personal auto insurance policies. That’s because personal vehicle insurance policies are not meant for businesses. In contrast, business owners, owning businesses that run on vehicles that are used for commercial purposes, are required to purchase commercial auto insurance.

Since commercial vehicles are more vulnerable to various damages due to their continuous functioning in a restless manner, they require comprehensive coverage. Determining whether your vehicle requires commercial auto coverage or private vehicle insurance can be sorted out by figuring out for which purpose your vehicle is being used.

Commercial vehicle insurance offers 4 major types of protection:

• Medical payment coverage under a commercial auto insurance policy can cover medical bills if you or your passengers are injured in the event of a car crash, regardless of fault.
• The policy covers physical damage and collision. It pays for repairs if your commercial vehicle is damaged by something other than a car accident. For instance, vandalism, theft, collisions with an object, and certain weather conditions are usually covered.
• Third party legal liability coverage pays for property damage or bodily injury to a third party caused by your vehicle. This policy also pays for accident-related legal expenses, such as settlement costs or attorney fees, etc.
• Uninsured motorist coverage with commercial auto insurance can pay for damage to your vehicle or bodily injuries suffered in case someone with no insurance cover hits your vehicle.

So by now, you must have gathered some knowledge on commercial auto insurance and why you should buy it. However, before the renewal of your commercial vehicle policy, make sure you compare different plans online to avail the best coverage for the best price. Meanwhile, you can click here to check out commercial vehicle insurance plans from the top insurance companies in India.