What Is Commercial Auto Insurance? Benefits, Cost And Coverages

Commercial Auto Insurance Benefits, Cost And Coverages: Commercial auto insurance is basically a policy of physical damage as well as liability coverages for the amounts, circumstances, along with users that are not covered by a personal auto policy. It is very important for every business person to know the difference between a personal auto insurance policy and a commercial auto policy for their business.

What is Commercial Auto Insurance?

Commercial auto insurance is the liability and physical damage and physical damage protection for Vehicles including Cars, Vans, Trucks, which are used for Business or Commercial Purpose. Commercial vehicles need a separate policy because they are exposed to More risk than personal Vehicle.

This type of business insurance includes a variety of vehicles such as from automobiles used for business, comprising company cars, to a wide-ranging of commercial trucks.

Commercial auto insurance is required in order to cover the cars, trucks, as well as vans that are used in accompanying your business. Large fleets, along with the small businesses, should be appropriately covered by a commercial auto insurance policy.

What are the Benefits of Commercial Auto Insurance?

 The first benefit is that the premiums on your commercial vehicle policy can be tax-deductible, you can find many other tax benefits since you now have a small business.

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With the help of this insurance, you can use a business address in an area with no money down car insurance.

If you want you can also have numerous drivers on the policy who do not live in your household.

You also don’t have to go through several procedures where your credits are checked as there are some companies that sell commercial vehicle policies without checking the credit of the individuals or the business credit in order to determine the premiums.

Also, with the help of this insurance, you can have several vehicles on the policy deprived of a match with the drivers. For instance, with a commercial policy you are allowed to have 6 vehicles on the policy with only two drivers.

What Is Commercial Auto Insurance? Benefits, Cost And Coverages

What are the Prerequisites required before getting commercial auto insurance?

In order to get a commercial auto policy, you must have the following:

  • Your vehicles must have been registered in the name of your business.
  • A federal tax identification number.
  • Some companies might also accept your social security number if you are a sole proprietor.
  • After obtaining these things you can search out for the best rates for commercial auto insurance.

Questions which you will be Asked

Here are some of the questions which you will be Asked:

  • Business Address and Phone Number
  • Tax ID Number
  • What type of business you have?
  • Is there any of the vehicles used for personal driving?
  • Where are the vehicles garaged?

What are the Discounts you can Receive under a Commercial Vehicle Policy?

You can also receive some discounts under a commercial vehicle policy and some of the discounts are as follows:

  • Previous insurance or transfer credit
  • Upper liability restrictions
  • No judgments, liens, or insolvency
  • No moving violations
  • Being in business for more than a year
  • All drivers more than 21 years of age
  • Airbags as well as alarm systems
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What are the Coverages in a Commercial Vehicle Policy?

Here is the list of coverages in a commercial vehicle policy and these are as follows:

  • Bodily injury liability coverage
  • Property damage liability coverage
  • Combined single limit (CSL)
  • Medical payments, no-fault or personal injury coverage
  • Uninsured motorist coverage
  • Comprehensive physical damage coverage
  • Collision coverage
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