As a business owner, you need the same kinds of insurance coverage for the car you use in your business as you do for a car used for personal travel—coverage that includes liability, collision, and comprehensive coverage; medical payments (known as personal injury protection in some states); and uninsured motorist coverage. This is where commercial auto insurance comes in.

What Is Commercial Auto Insurance?

A commercial auto insurance policy covers vehicles used in the course of your business. The coverage is very similar to your personal auto policy and includes:

·         Bodily injury and property damage liability, which covers injuries to other drivers  and their property.

·         Comprehensive, which covers your vehicle(s) against losses from theft and vandalism, among other covered losses.

·         Collision, which covers your vehicle(s) for damage as a result of an accident.

·         Medical payments (also called no-fault, or personal injury coverage), which covers the medical expenses of the driver and passengers in your vehicle, incurred as the result of an accident, regardless of fault.

·         Uninsured motorist coverage, which covers your injuries (UMBI) and your property damage (UMPD) incurred as a result of an accident caused by an uninsured or hit-and-run driver, up to the limits specified in the policy.

 

 

Why Do You Need Commercial Auto Insurance?

Whether you need to buy a commercial auto insurance policy depends on the kind of driving you do. A good insurance agent will ask you many details about how you use vehicles in your business, who will be driving them, and whether employees, if you have them, are likely to be driving their own cars for your business.

 

Things to Consider and Questions to Ask Your Agent

Consider whether you use the same vehicle for both business and pleasure. If the vehicle is owned by the business, make sure the name of the business appears on the insurance policy as the “principal insured,” rather than your name. This will avoid possible confusion in the event that you need to file a claim, or a claim is filed against you.

While the major coverages are the same, a business auto policy differs from a personal auto policy in many technical respects. Ask your insurance agent to explain all the differences and options.

 

 

Don’t take a risk when it comes to coverage for vehicles used for business purposes. The experts at Cameo Insurance can help you understand whether you need a commercial auto insurance policy and will work with you to find you the best rate with a reputable insurance company. We’ve helped countless business owners across Greater Los Angeles—from Inglewood, to Culver City, to Hawthorne, to Santa Monica. We look forward to becoming your trusted insurance agent.