Commercial auto insurance is coverage intended to insure company cars, vans, trucks and other vehicles that are used in the course of business, including those that own and supply company cars to employees, those that use vans and trucks to haul their own goods, those that transport passengers, and those that lease vehicles to others.
There are two main areas of commercial auto coverage:
The first area is the liability section, which is designed to pay for the damages which you are legally liable for arising from injuries or death, or from damage to the property of others. This includes the expense of lawsuits against you, court costs and legal fees. This coverage is required by the State to drive in California.
The physical damage section is the part of the policy that indemnifies the insured for a loss to a covered company auto or its equipment under either the comprehensive or collision coverage. When comprehensive coverage applies, it will pay for loss or damage to your vehicle resulting from such perils as fire, theft, vandalism, windstorm, glass breakage, explosion, etc. Comprehensive and collision coverage are written with a deductible. When collision coverage applies, it will pay for damage to your vehicle caused by a collision with another vehicle, object or by upset.
Other important coverages to consider when purchasing Commercial Auto Insurance include:
Pays for damage to your vehicle (UMPD), or injury to you (UMBI) caused by someone without insurance; however, either the owner or operator of the uninsured vehicle must be identified. Some policies will pay up to $3500 to repair or replace your vehicle if you do not have comprehensive and collision coverage.
HIRED AUTO COVERAGE:
Extends liability in case your business needs to rent a vehicle.
EMPLOYERS NON-OWNERSHIP COVERAGE:
Covers you from the liability of your employees driving their own vehicles while working.
Kelly Williams Insurance will be happy to review your current coverage with you and give you a competitive quote from our various commercial auto carriers.