If your business relies on automobiles, you must have commercial auto insurance, whether running it or owning it. These insurance policies work for all kinds of cars that get commercially used.

What Exactly Is Commercial Auto Insurance?

Insurance for business cars, commonly referred to as commercial insurance, covers the damages to vehicles used for business. If your business owns vehicles, whether an automobile, truck, van, or trailer named to the company’s name, you need Commercial Auto Insurance to protect all of them.

At present, a lot of vehicles are getting used for commercial purposes. Take taxis, for instance. They are vehicles employed to perform day-to-daily activities for a company. The daily operations of taxis and other commercial vehicles increase the dangers, like accidents and damages from artificial or natural disasters. The risks could cause massive vehicle damage, resulting in costly repairs.

The expense of your vehicle’s maintenance could throw off the budget for your business, reduce your revenues, and even result in a loss. So, business owners should have comprehensive business auto insurance to safeguard themselves financially from these expenses.

What Kind of Coverage Can Commercial Auto Insurance Provide?

Business Insurance typically covers bodily injury and property damage claims in the case of an accident occurring during the business. The coverage may vary depending on the kind of insurance you’ve bought. It is, therefore, crucial to study your insurance thoroughly. Your insurance could broadly comprise:

  • Collision: Insurance is a way to cover the damage to a vehicle caused by traffic accidents or collisions with a stationary object, such as a home or a subway. Consider a scenario in which a company vehicle’s driver is hurt while on company time, and a nearby traffic sign gets hit. You’d need to cover the cost of damaging your car out of your pocket if you aren’t insured.
  • Comprehensive: Comprehensive insurance covers damage to your vehicle by unavoidable circumstances. Damages to your car during theft will protect you under the insurance.
  • Liability: Liability insurance will cover any damages that result from injury to another person from your business vehicle. The insurance policy will cover the costs if the victim seeks compensation from your company over the wounds. Suppose a driver is found reckless driving or driving under the influence. For instance, while carrying out business, your driver runs into a pedestrian in the roadway. In that case, your liability policy might not cover certain states.

Car insurance for business vehicles differs from personal insurance for cars. They differ in the extent of coverage. Commercial Auto Insurance is only for commercial vehicles. In contrast, the other insurance covers the personal usage of vehicles, such as injuries incurred during travel.

Do I Need Commercial Auto Insurance Required for My Car?

The car is leased to you for lease from a company or a business. You’ll require business insurance if you utilize your vehicle to work, even for delivery or commuting. It is also necessary to have insurance for business vehicles if you:

  • The car is leased to you for lease from a company or a business
  • The weight of your vehicle is greater than the limit
  • Cars get used to cover vast areas
  • Utilizing the vehicle on the roads for business purposes, like delivery
  • If you must drive your managers or coworkers to meetings, offices, or multiple work sites in your work,

It’s important to point out this because just because your vehicle isn’t in one of the above conditions does not mean you can’t have your car insured.

Cost of Commercial Auto Insurance

Business vehicles are more likely to suffer injuries due to accidents since they are nearly always on the roads. They are therefore more expensive than regular car insurance. It’s impossible to determine the exact cost that will provide you with an estimate of the amount the insurance costs you. Prices differ as each company has its unique requirements.

Insurance companies use a variety of variables to determine the cost, including:

  • What uses do you envision having for your vehicle?
  • The history of the driver
  • The location you’re driving your vehicle, highway, or remote location.
  • The business claims that you have made in the past.

Contacting agents for commercial insurance is the most effective method to determine the amount of business insurance that will cost your business. The agents from Commercial Insurance Ottawa are well equipped to help you locate the right commercial auto insurance to suit your needs for the lowest price. Contact us at (613) 454-5640 or email at info@commercialinsuranceottawa.com to request a commercial auto insurance quote.