Buying a New Business Vehicle: What You Need to Know About Insurance 

Adding a new business vehicle to your business fleet is a big step. It can improve logistics, expand your reach and help you better serve clients. But before you put that new truck or car on the road, it’s important to understand your insurance responsibilities.

How Does Commercial Auto Insurance Work?

Commercial auto insurance may cover vehicles used for business purposes. It’s different from personal auto insurance in scope and purpose. This policy covers incidents while the vehicle is used for work-related tasks, such as deliveries, transporting tools or visiting clients.

If your business owns the vehicle, it will need a commercial policy. Even if your employees use their own cars for work tasks, you may still need coverage such as hired and non-owned auto insurance.

What Does Commercial Auto Insurance Cover?

The following is a breakdown of the standard types of coverage:

• Liability coverage may cover bodily injury and property damage caused to others when your driver is at fault in an accident. It may pay for repair bills, plus legal and medical expenses.

• Personal injury protection may cover medical bills, lost wages and other related costs after an accident.

• Collision coverage may apply when your business vehicle is damaged in a crash, regardless of fault. It may help pay for repairs or the value of the vehicle if it’s totaled.

• Comprehensive coverage may cover noncollision incidents such as theft, vandalism, fire or natural disasters. It may pay for repair or replacement costs after unexpected events.

• Uninsured/underinsured motorist coverage may cover medical bills and repair costs if someone with little or no insurance hits your driver.

Each policy may vary in limits and availability, so it’s essential to confirm what your coverage includes and make adjustments based on how the vehicle will be used in your business.

We’re Here to Help

The insurance professionals at INSANDTAGS.COM can help you learn more about commercial auto insurance. Contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.