Every business needs reliable transportation. It doesn’t matter if you run a delivery service, a plumbing company, or a catering business. Work vans play a crucial role in delivering these services. But what happens if one of these work vehicles gets damaged or involved in an accident? That’s why commercial auto insurance is a necessity in keeping your business well-protected.
Why You Need Commercial Auto Insurance
Work vehicles face risks every day. Accidents on busy roads or unexpected breakdowns can always happen. Personal auto insurance also doesn’t cover vehicles used for business purposes. Relying on a personal policy could leave your business in a tough spot.
What’s Covered Under Commercial Auto Insurance?
Knowing the details of your commercial auto insurance policy is always important. Reaching out to an insurance agency is recommended in helping you find the best policy for your situation and you can always contact them if you have any questions.
Here is an overview of what is covered under commercial auto insurance.
Liability Coverage
If your driver causes an accident, liability coverage pays for the other party’s injuries and property damage. Without it, your business could face hefty out-of-pocket expenses.
Physical Damage Coverage
This protects your work vans from various types of damage.
Collision Coverage
Pays for any damages resulting from collisions with other vehicles or objects.
Comprehensive Coverage
Covers non-collision incidents like theft, vandalism, or natural disasters.
Medical Payments Coverage
If your driver or passengers get injured in an accident, this insurance coverage helps pay for medical costs. This can be a lifesaver, especially if health insurance doesn’t cover all costs.
Uninsured/Underinsured Motorist Coverage
Not all drivers carry adequate insurance. If someone underinsured or uninsured driver hits your work van, this coverage will make sure you are not left paying for repairs and medical bills.
Hired and Non-Owned Auto Coverage
If your business occasionally rents vehicles or employees use their cars for work purposes, this coverage extends your commercial auto policy to those vehicles.
A Few Factors Affecting Your Premium
Several factors influence the cost of your commercial auto insurance. Understanding these can help you manage your expenses better. Here are some things to keep in mind.
1. Vehicle Type and Value
High-value or specialized vehicles cost more to insure. Be sure your coverage matches your van’s worth.
2. Usage
Frequent, long-distance trips increase risk, raising premiums.
3. Driving Records
Clean driving records of your employees can lower costs, while past accidents or violations can hike up premiums.
4. Location
High-traffic areas or places with high crime rates may result in higher premiums.
5. Coverage Limits and Deductibles
Higher coverage limits increase premiums, while higher deductibles lower them. Balance these according to your financial comfort.
Tips for Lowering Your Premiums
Running a business involves balancing costs. Looking at ways to save money is always a good idea. Here are tips to keep your commercial auto insurance premiums manageable.
- Maintain a Clean Driving Record
Encourage safe driving among employees. Consider implementing a safe driving program or providing defensive driving courses.
- Choose the Right Vehicles
Buy vans with safety features and good reliability records. Insurance companies usually give discounts for vehicles with advanced safety systems.
- Bundle Policies
If you need other types of business insurance, consider bundling them with your commercial auto insurance. Many insurers offer discounts for multiple policies.
- Regularly Review Your Policy
Business needs often change. Regularly look over your insurance policy to make sure it still meets your needs.
- Increase Deductibles
If your business can afford higher out-of-pocket costs in case of an accident, choosing to increase your deductible can lower your premium.
Claims Process
Accidents happen, even with the best precautions. Knowing how to handle a claim can make the process smoother. Here are the steps you’ll need to take:
1) Report Immediately
Notify your insurer as soon as possible. Provide all necessary details, including the time, location, and circumstances of the accident.
2) Document Everything
Take photos of any damage, obtain witness statements, and keep all relevant documents. This evidence will support your claim.
3) Cooperate with Your Insurer
Answer all questions honestly, and be sure to provide any requested documentation promptly. Cooperation always speeds up the process.
4) Follow Up
Keep in touch with your insurance adjuster to keep track of your claim’s progress.
Need Commercial Auto Insurance? Contact Wellcovered Insurance!
Wellcovered Insurance can help you find the best auto insurance to meet your needs. We also offer other insurance options, such as home, motorcycle, RV, commercial property, and much more.
Our values are all about staying helpful, over-communicating, taking the right action, defining any issues, and helping you achieve the best solution. We also stay active in the local community.
Give Wellcovered Insurance a call to learn more about our commercial auto insurance options!
