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What is Commercial Car Insurance?

  

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From: DMVanswers.com

Commercial car insurance is required for any business, small or large, that utilizes any car, van or truck as part of their business practice. Just as all individuals using the highways of America are required to purchase personal auto insurance, so too are businesses.

All businesses that use work vehicles are required to hold commercial car insurance; however, for the most part, smaller companies that only use personal vehicles need only purchase ordinary insurance policies. They should, however, take out liability coverage for any employee that may be involved in an accident while making business-related car journeys.

For businesses that provide transportation to clients or other members of the public, whether in personal or commercial vehicles, supplementary business insurance is usually recommended. It is crucial that you talk to an insurance agent about the specific situation of your business, as well as the requirements and function of each different commercial vehicle that may be in use.

Different kinds of commercial vehicles require specific insurance policies. Some states categorize commercial vehicles by weight, others by type, with the cost of insurance depending on the circumstances of these categories. In general, larger vehicles are more expensive, but there are other determining factors, including:

• The age and driving record of people allowed to operate the vehicle
• The number of people allowed to operate the vehicle
• The driving record of the vehicle's owner

There are also options that can be taken in addition to the standard commercial coverage to provide auto insurance over business assets that may be at risk within a commercial vehicle. They include:

• Cargo Coverage: guards the policy holder against damage to business items during transportation or storage.
• Crime Insurance: provides protection against loss from theft or burglary of business items.
• Equipment Coverage: insures business tools while inside the vehicle.
• Business Interruption Coverage: protects against loss of income resulting from a covered loss.