4 Questions to Answer Before Buying a Commercial Auto Policy

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4 Questions to Answer Before Buying a Commercial Auto Policy

Getting a commercial auto policy for all the vehicles that your company uses is more than just a business requirement. A commercial auto policy protects your business in a long-term basis as accidents are common on the road. Apart from your investments, you also need to keep your employees in mind as they enter the risk of everyday business operations.

If your business is just starting out, you’ll want to save all the money that you can without sacrificing catastrophic losses when it comes to insurance. Here are some things to consider before purchasing a commercial auto policy.

Who is the Owner?

The named insured should be the person or the company that owns the vehicles. If not, the registered owner is not entitled to any claim. For example, you own two businesses. The second company owns fleet of vehicles which the first company leases. In this case, both companies should be registered as insureds.

What Kind of Vehicles Do You Have?

Vehicles are divided into two broad categories in commercial auto insurance: private passenger-type autos and trucks, tractors, and trailers.  Sedans, minivans, and station wagons fall into the private passenger-type autos. For trucks, vehicles are subdivided into classes based on their gross vehicle weight (GVW).

You should know that vehicles which are part of a fleet have generally lower rates.  To insure vehicles as a fleet, the same company must have at least five or more vehicles. These may be trucks, passenger types, or a combination of both. Make sure you include all your company’s vehicles in a list. Note the year, make, model and GVW (for trucks only).

Do You Use Vehicles that You Don’t Own?

Using vehicles that you don’t own may result to a lawsuit that are filed in the event of accidents. Vehicles that you don’t own are divided into: hired autos and non-owned autos.  Hired autos are vehicles that your business leases, hires, or borrows. Non-owned autos are other vehicles that your company uses but does not own.

No matter what, both types of non-owned vehicles should be insured. Don’t worry, you can purchase a policy that covers only hired and non-owned autos.

How Often Do You Use Them?

The frequency and time spent on the road and the location of your parking space can determine the insurance’ cost. This is because some location may post higher risks, such as theft, accidents, vandalism and more.

A commercial auto policy is surely a great investment to protect your business in the long run. Sameday Insurance has its clients as their first priority with affordable rates and comprehensive policies. To learn more about how we can help you please contact our agency at (888) 750-9775 or Click Here to request a free quote.

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