Why Do You Need Commercial Auto Insurance

Commercial auto insurance is a policy that covers property liabilities and physical damages for commercial vehicles. It covers injuries and damages involving cars that are registered under a business. On that note, auto insurance is largely essential in protecting your investments and it is only proper to know more about getting covered.

If you are using a personal vehicle for your business, your personal auto insurance does not cover business-related losses. According to Insureon, driving for commercial use is riskier compared to driving for personal use, so there are differences in terms of coverage and premiums. There’s also the risk of violating the terms and conditions of your personal auto insurance policy if you use your car for business-related matters.

While personal auto insurance covers certain aspects of business-related driving, commercial auto insurance provides full protection to your vehicles.

That being said, here are the reasons why you need commercial auto insurance.


Higher liability limits

Commercial auto insurance policies are way more expensive than the standard personal auto insurance policies. This is understandable, considering that they offer higher liability limits for injuries and property damage. The amounts vary from state to state, but they usually cover medical expenses, damages, and uninsured or underinsured motorists (UMs).

Protection for your employees

Commercial auto insurance covers vehicles used by your employees for your business. This policy covers financial liability involving your employees if they encounter at-fault accidents and damages that could otherwise affect your business’ bottom line. In other words, commercial auto insurance can cover for your employees’ medical bills and pay off liabilities, if there are any.

Protection for your equipment

Logistics is an important aspect in running a business, although anything can happen to commercial cars while they are on the road. With that, commercial auto insurance covers business-owned vehicles that carry equipment. Depending on your policy, you can add extra protection to items that are transported using your business’ vehicles.

Greater flexibility

Commercial auto insurance coverage does not only offer protection for specific types of vehicles. This policy can, in fact, cover any type of vehicle for business use. Hence, no matter what kind of vehicle you want to use for your business, you can certainly give it the right amount of protection and security.


In order to protect your business vehicle from other possible risks, visit AIA today for your insurance needs.

Related Post: A First Time Drivers Guide to Getting Car Insurance in Deltona, FL , Automobile Insurance

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