Why is Commercial Auto Insurance Important?

Without Commercial Auto Insurance, your company might face legal and financial consequences. In California, every company that owns its own automobiles is required to purchase auto liability insurance.

If one of your company’s vehicles is involved in an accident, you might face a costly lawsuit or settlement. Damage to the other car or property, medical expenses, missed earnings, pain and suffering, and other related expenditures are all possible.

You may also face significant penalties if you do not have Business Auto Insurance. If you are charged for not having insurance, you might face a fine of more than $350, have your car confiscated, and have your auto insurance premiums rise. A repeat infraction can result in a $1,800 fine and a four-year license suspension from the state.

Commercial Auto Insurance Coverage

Your commercial auto policy may contain the following coverages:
  • Auto Liability Coverage:
  • It is the most prevalent form of company vehicle insurance. The majority of states in the United States mandate liability auto insurance. Liability protects you individually if you are responsible for damage to someone else’s automobile or injuring someone.

  • Third-party Bodily Injury Liability Coverage:
  • If your car is involved in an accident, this section of the insurance pays for their medical bills, legal fees if they are sued, lost income, and burial expenses. This is also known as medical payment coverage.

  • Property Damage Liability Coverage:
  • It protects you against damages to a third party’s vehicle. It compensates for the repairs or replacements regardless of who is at fault.

  • Personal Injury Protection (PIP):
  • This coverage will pay for medical bills and lost earnings if you (the insured) and your passengers are harmed in an accident. PIP compensates whether or not you are to blame.

  • Comprehensive Coverage:
  • It pays for the repairs or replacement of your car if it is destroyed by the climate conditions, vandalism, or theft.

  • Collision Coverage:
  • is another type of commercial vehicle insurance. Collision insurance will pay for damage to the policyholder’s automobile as long as the policyholder is at fault. If another person causes damage to your vehicle, their liability covers the cost of repairs.

  • Uninsured and Underinsured Motorist Coverage:
  • Most states mandate this policy, which will cover you if the other party is accountable but does not have coverage. Why is it significant? According to recent figures, one out of every eight drivers does not have auto insurance.

Umbrella Insurance Coverage for Commercial Auto Insurance

A commercial umbrella policy increases the coverage limits of several of your major liability insurance plans, such as General Liability Insurance and Commercial Auto Insurance.

Our Commercial Umbrella Insurance is adaptable to your needs. It has the potential to increase the liability coverage of other insurance policies you may have. We can assist you extend a General Liability Insurance coverage from another insurer.

Assume one of your employees is involved in an automobile accident while delivering a package to a customer. Your company’s commercial auto liability limits are insufficient to cover the costs of property damage and physical harm. You’d have to pay the fee that surpasses your policy limit if you don’t have a commercial umbrella coverage, putting your firm in danger. That is why having umbrella coverage is critical.
Allow us to assist you in finding protection for your company and putting your mind at ease. Our objective at Umbrella Insurances is to assist any medium or small business in managing risk by assisting you in obtaining reasonable rates. Obtain a quotation to get a reasonable insurance quote quickly and conveniently. Alternatively, call us at 833-817-7285. One of our experts will call you shortly to assist you in locating the most cost-effective Commercial Vehicle Insurance.

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