One of the most important aspects of a business is purchasing commercial vehicle insurance. It covers you against property damage and bodily harm, and protects you against medical costs associated with injuries suffered by drivers as well as passengers. You will more than likely want to purchase some form of coverage to protect yourself from theft, accidents, or other issues whether you have a personal car for business use or you own a large fleet of trucks.
Determining Whether or Not You Need Commercial Vehicle Insurance
If you have a sole proprietorship, you may be sufficiently covered by a personal automobile policy. However, if you don’t have the right type of coverage, your business could be at risk if an accident should occur.
The first thing to consider is how often you use your automobile for business. If you only use it occasionally, then your personal policy may be sufficient. On the other hand, if you use it frequently for business, then you should consider having your policy upgraded. If you have cars or trucks that are driven by someone other than yourself, you will definitely need commercial vehicle insurance. If you have employees who drive their own personal cars for your business, you will want to think of purchasing a supplemental rider to protect yourself in case of an accident.
Deciding on the Right Coverage
There are several different factors that will determine how much you will be paying for your commercial vehicle insurance. Of course, your payments will increase as the number of units in your fleet increases. However, while your overall costs will go up, the rate per vehicle may go down as you cover more of them. There are some cars and trucks that cost less to cover than others.
It is very important that you hire drivers with clean driving records whenever possible, because this can help lower your costs as well. Make sure you conduct a thorough background check by obtaining a driving record from your local DMV office and verify that anyone you are hiring has a commercial driver’s license (CDL).
If you are transporting valuable materials, it is important that you purchase additional coverage. Most policies only cover physical damage to cars, trucks, and SUVs, not their contents. Comprehensive coverage will take care of all damages that occur to due vandalism, theft, and extreme weather conditions. Collision coverage will take care of damages and expenses that take place in a collision-specific accident.
Before You Buy
You should shop around before deciding on the type of coverage you are going to purchase. One of your best options will be to speak with a professional who can help you determine your specific coverage needs. Get several quotes before you choose a provider.