If you’re considering auto insurance coverage for your business, it’s important to understand the basic elements of a commercial auto policy. The more you know, the easier it is to compare coverage and make an informed choice. Commercial auto insurance provides a variety of coverages for cars, trucks, vans and other vehicles used by your business. There are three basic parts of every commercial auto insurance policy: Pays for damage to your vehicle if you hit another vehicle, another vehicle hits you or your vehicle rolls over, regardless of who is at fault. Collision coverage may be required if your vehicle is financed or leased Pays for damage to your vehicle from causes other than an accident. Such causes may include theft, flood, vandalism, earthquakes, fire or damage from a bird or animal Covers bodily injury to others and any property damage to another vehicle if you are at fault in an accident. Bodily injury pays others’ medical costs and lost wages, and your legal expenses if a lawsuit is brought against you due to an accident Pays for your injuries or property damage if you’re hit by an uninsured driver or, in some states, an unidentified driver Protects you if the at-fault driver doesn’t carry enough liability insurance to cover your bills – unless you live in a no-fault state, where each driver’s auto insurance policy responds to their own losses Beyond these basic components, you can customize your business auto policy with the following coverages (also called endorsem*nts): Protects you when problems arise that are not typically handled under your commercial auto policy. This could include being locked out of your car, dead batteries and flat tires Replaces your new vehicle under a total loss with a new or comparable vehicle. Also provides gap coverage for any amount you may owe that’s above your car’s actual cash value Covers comprehensive and collision damage to a leased or rented vehicle, as well as any other contractual obligations to the leasing or rental company Covers the difference between the unpaid amount on the loan or lease and the actual cash value of the vehicle, if your vehicle is a total loss after an accident Provides towing coverage beyond what’s covered by your standard business auto policy. It also covers towing, jump starts and minor roadside repairs Pays for a rental car up to the limits of your policy so you have transportation after an accident Pays for medical expenses if your health care insurance – or your passengers’ – doesn’t cover the costs
Commercial auto insurance definition
What does commercial auto insurance cover?
Collision insurance
Comprehensive insurance
Liability insurance
Uninsured motorist coverage
Underinsured motorist coverage
Options & add-ons
Roadside Assistance
New vehicle replacement cost coverage
Hired auto physical damage with loss of use coverage
Auto loan or lease coverage
Expanded towing
Rental reimbursem*nt
Medical payments or personal injury protection coverage
FAQs
What is Commercial Auto Insurance? – Nationwide? ›
Commercial auto insurance definition
What is the definition of commercial auto insurance coverage? ›Commercial auto insurance covers you and employees who use your vehicles as part of your business. If your vehicle causes an accident, resulting in injury or damages to property, a party can file a claim and bring a lawsuit against you or the driver.
Is commercial insurance the same as full coverage? ›Full coverage auto insurance is typically a combination of various commercial insurance options that add up to protect the vehicle, the driver, and the company to the fullest extent possible.
What does it mean when it says commercial insurance? ›Commercial health insurance, also called private health insurance, is coverage issued by a private company or entity. It is not from government-issued insurance like Medicare or Medicaid.
Is commercial auto insurance a write off? ›Personal auto insurance doesn't typically cover vehicles used for business purposes, but commercial auto does. However, if you deduct your commercial auto insurance premium, you can't deduct the mileage you accrue while driving for business purposes. So, you'll have to choose which deduction you want to take.
What are the two types of commercial insurance? ›Commercial insurance is divided into two main categories: property insurance and casualty insurance.
How many types of limits are found in a commercial auto policy? ›How Many Types of Limits Are Found in Commercial Auto Policies? The types of insurance/limits found in a commercial auto policy include bodily injury and property damage if the policy is a split policy. Combined single-limit policies have one limit for both bodily and property coverage.
Why is my commercial insurance so high? ›If your building is determined to be in a state of disrepair or otherwise more likely to experience a claim-triggering event due to its condition, your commercial property insurance rate will likely be higher.
What does commercial fully insured mean? ›A fully-insured health plan refers to a group health plan in which the employer or association purchases health insurance from a commercial insurer in order to provide coverage for its employees or association members.
Do I need both commercial and personal auto insurance in California? ›In most cases, you will need both commercial and personal auto insurance. That's because most personal car insurance policies do not cover incidents related to the business use of a vehicle. If you use your commercial vehicle for personal use, you will need personal car insurance to stay protected.
What is the difference between commercial and non commercial insurance? ›
Commercial policies only cover the business and its employees, while non-commercial policies cover the individual who purchased the policy and anyone else who may be driving their vehicle at the time of the accident. Another difference is the amount of coverage provided by the policy.
What is a commercial line of insurance? ›What Is Commercial Lines Insurance? Commercial lines insurance includes property and casualty insurance products for businesses. Commercial lines Insurance protects businesses from potential losses they can't afford to cover and allows companies to operate when it might otherwise be too risky.
Which type of commercial insurance plan is generally defined as an insurance policy with lower premiums and a substantial deductible? ›High deductible health plan (HDHP)
A plan with a higher deductible than a traditional insurance plan. The monthly premium is usually lower, but members pay more health care costs out of pocket before the insurance company starts to pay benefits (up to a deductible).
Yes. However, using a car for business and personal reasons may reduce your overall tax deductions. For example, you won't be able to deduct any mileage acquired through personal use of the vehicle. So, you'll need to keep track of business mileage vs.
Can I claim auto insurance on my taxes? ›Car insurance is tax deductible as part of a list of expenses for certain individuals. Generally, people who are self-employed can deduct car insurance, but there are a few other specific individuals for whom car insurance is tax deductible, such as for armed forces reservists or qualified performing artists.
What losses are excluded under a commercial auto policy? ›Intentional damage, damage from pollutants, and injuries covered by workers' compensation are just a few of the notable exceptions to most Commercial Auto Liability Insurance plans.
What is commercial vs business use auto? ›The most evident difference between business insurance and commercial auto policies involves how work-related vehicles are used are used. Business auto insurance covers vehicles used for trips through regular traffic, whereas commercial auto insurance covers specialized vehicles designed for specific jobs.
What is non owned auto coverage commercial? ›Non-owned vehicles are personal cars that your business doesn't own or lease. Non-owned auto coverage helps provide liability protection if a vehicle you haven't leased, hired or rented is driven for your business and is in an accident.
What does commercial mean with cars? ›A commercial vehicle is any motor vehicle used for transporting paying passengers, goods or for services.
What is commercial auto insurance symbol 19? ›Symbol 19: Mobile Equipment
This commercial auto symbol is for mobile equipment subject to compulsory or financial responsibility or other motor vehicle insurance law only.