If you own a vehicle that is driven for business-related purposes, you may need to purchase a commercial auto insurance policy. In many instances, the legal requirements that may be in place for commercial vehicles varies from those vehicles that are driven for private or personal use. The requirements may vary based on the type of vehicle that is being driven, what type of cargo may be hauled in it and even how many passengers it may carry. You can learn more about the legal requirements that may be in place for your commercial auto insurance policy as a first step when buying a new policy or when updating existing coverage.
There may be additional requirements that you need to comply with if you have a business vehicle. For example, if you have a vehicle loan in place, the lender may require you to purchase coverage so that the vehicle can be repaired or replaced if it is damaged or destroyed. You can check with your lender to learn more about this coverage requirement.
When you purchase coverage, you will learn that there are several different types of insurance available for commercial vehicles. This includes liability coverage, which will pay for expenses related to lawsuits that are filed against you as well as reimburse others for damages you cause while operating the vehicle. In addition, you may purchase collision or comprehensive coverage, and this will pay for damages to your own vehicle. There are also other types of coverage available, such as personal injury insurance, rental vehicle reimbursement and more. The type of coverage, the amount for each type of coverage and your deductible may all be adjusted at the time you purchase the policy.
In many instances, those who own a commercial vehicle will purchase more than the minimum amount of coverage that is required by law or by their lender. This is because auto insurance offers many financial benefits, and you may need to be fully covered in order to take advantage of these benefits. When buying a policy, carefully consider your need for various types of auto insurance.