What Types Of Commercial Auto Insurance Does My Company Need?

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If your business includes vehicles, you need auto insurance. However, not all companies use vehicles in the same way. Some have leased vehicles that they use for key employees and salespeople. Some have delivery trucks or cars. Others use trucks as a kind of mobile workstation, such as contractors, HVAC repair people and plumbers. With all of these different functions, it's understandable that there are also a variety of different types of commercial auto insurance. Which type or types do you need?

1. Property and bodily injury liability coverage. Every company that uses vehicles in its business needs liability insurance. Not only is it required by law in all but two states, but it protects your company from having to pay damages and medical bills should you or one of your employees hurt someone or damage their property with a vehicle.

2. Collision insurance. Collision insurance protects the value of your vehicle should you be in an accident. This is the insurance that will pay for your vehicle to be repaired (generally, less a deductible.) If you lease or finance your vehicles, your lender or the lease agent will generally require that you carry collision insurance.

3. Comprehensive insurance. Comprehensive insurance covers your vehicle when it isn't being driven. This type of insurance covers things like damage from a tree falling on a car, damage from hail stones or damage from vandals breaking into one of your vehicles when it is parked. Like collision insurance, comprehensive is usually required by lenders and lease agents.

4. Medical payments. Medical payments insurance can be added to another commercial auto policy and helps pay the medical expenses of you, your passengers or your employees if you or they are injured in an accident in one of your vehicles.

5. Uninsured motorist coverage. This type of auto coverage is another type of insurance that can generally be added to another commercial auto policy. It protects you and your employees should you or they be in an accident that was caused by a motorist who didn't carry insurance.

While commercial auto insurance in your area can be a little bit more complicated than your personal auto insurance, the basic categories still apply. You'll want to have at least liability insurance and add additional coverage based on the value of your vehicles, whether you own them outright or finance or lease them, and whether you have the cash reserves to provide self insurance.