Steps to follow for buying Commercial Auto Insurance

Are you a business owner? Are you thinking of buying commercial auto or vehicle insurance policy for your business? You have come to the right place, Auto Insurance Invest has come with the complete list of guidelines to help you to buy one.


Today, we are going to discuss about commercial auto or vehicle insurance policy and the things related to it. Do note that, if your business owns vehicles and they are titled in the company’s name, your commercial vehicles need insurance for complete coverage. The step-by-step guides that very business looking to get commercial vehicle insurance needs to follow are understanding Commercial Auto Insurance. Know about Commercial Vehicle Insurance requirements, inspecting driving records, ensuring higher limits, having more deductible, integrating with commercial package policy, things about rental Reimbursement Coverage, go for Hired and Non-Owned Auto Insurance, checking Physical Damage Coverage and also using Electronic Funds Transfer. Do read about the different processes in detail.

Steps to follow for buying Commercial Auto Insurance

What is Commercial Auto Insurance? Do my business needs to have Commercial Vehicle Insurance? What are the steps to save money on Commercial Auto Insurance policy? You need to go through the article till the end to find the answers to the questions which are asked above.

Understand Commercial Auto Insurance

To get a general understanding, unlike a personal auto insurance plan, commercial coverage is designed for the needs of businesses that have several drivers and multiple vehicles of any businesses.

Do remember that the liability portion of your policy covers the bodily injury to others and any property damage to another vehicle if you are at fault in an accident. In addition to that, the medical expenses are also covered.

Commercial Vehicle Insurance requirements

The next question that comes into that mind of most business owners is about the eligibility issues. So, let us find the necessary requirements one needs to qualify for getting for become the policyholder.

However, as there are no clear rules, most insurance companies checks on the liability coverage. As some insurer, ensures that at least $100,000 commercial auto liability coverage per vehicle, with a recommended minimum of $500,000 up to a maximum of $1 million

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Inspect driving records

One should also not that, it is vital to Check employee driving records before you hire. When hiring an employee, who will drive a company vehicle or use their own vehicle as part of their job.

It is vital for all businesses to perform a Department of Motor Vehicles screening before hiring. Moreover, Employees with poor driving records not only adversely affect your premiums but can put the entire future of your business at risk.

Ensure higher limits

The types of limits is very important while getting commercial vehicle insurance for the company. Do remember that, if you want to keep your premiums low, there is no more expensive policy.

You should always go for the one that does not have sufficient coverage to protect you if you are sued by any reasons. For that purpose, you are always advised to purchase higher limits for better protection.

Have more deductible

The policy holders are always told to increase the deductible amount. There are many benefits of it which you can understand over the years. One of the things that needs to be cleared is that the lower your premium, the higher your deductible.

Over the years, the premium savings can offset the deductible amount if you have had to some important adjustments. However, be sure not to set the deductible to an amount you cannot afford easily because claims can happen at any time.

Integrate with commercial package policy

You should understand that having your commercial auto with the same carrier that writes your business owner policy or commercial package policy may provide you with an opportunity for discounts depending on your situation.

However, the integration should always be seamlessly and in the sole benefit of the company and the employees. However, it also important to check with the auto insurer for the eligibility issues.

Rental Reimbursement Coverage

If you are thinking of buying rental reimbursement coverage, go for it. The different advantages that one can have from the coverage are many and is generally applicable for the vehicles which are used for rental use.

It is more evident, only if your company vehicle is damaged in an accident and has to go into the shop for repairs, this coverage will help to cover the costs of renting a replacement vehicle.

Hired and Non-Owned Auto Insurance

It is vital for you to learn about the importance of hired & non-owned vehicle coverage. The reason for getting is that, to ensure that the business vehicles are never used for any personal purposes and also vice-versa.

Do also note that, these are situations where a commercial auto policy excludes coverage unless you purchase optional Hired and Non-owned Auto Liability and Hired Auto Physical Damage coverage.

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Check Physical Damage Coverage

You must definitely get check physical damage coverage. Moreover, one of the mistake that most businesses make while getting a commercial auto insurance for their firm is not double-checking with the insurer about the rules and regulations which needs to followed for the process.

In addition to that, do always remember that if you do not have a separate personal auto policy because all vehicles are owned by the company, do not forget to add this coverage to your commercial auto policy.

Use Electronic Funds Transfer

In a later blog, we are going to discuss about the way to save money on your commercial auto insurance costs. For the time being, we are going to reveal a vital tip that most business owners do not easily realize.

It is important to make your payments using Electronic Funds Transfer withdrawal of your payment from your bank account. By doing it, most of the insurance companies will waive installment fees.

Get Commercial Auto Insurance Policy:

So, you have go a better idea about the entire process that involves buying commercial auto insurance plan. There are many advantages of having a commercial vehicle insurance which we have helped to discuss about. The commercial Auto Insurance can help pay to repair physical damage to the vehicle you drive for business if it is damaged by theft, weather events, or collisions. You have also learned about the business auto insurance coverage and how it protects your company in various ways. Thus, the time has come for the business owner to visit the best auto insurer and choose the favorable plan. Do come back for knowing about the top commercial auto insurance companies to go for, about which we will discuss in an upcoming blog!

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