Who Should Get Commercial Car Insurance?

Published: January 30, 2018

Updated: May 15, 2018



Commercial car insurance is an insurance protection for business vehicles. You will require a fleet insurance if your company owns a fleet of vehicles. The actual number vehicles that will be covered in the insurance policy differ for different insurance firms. When compared to personal automobile, fleet insurance is cheaper. Commercial auto insurance does not cover protection for personal auto insurance policy. You need to purchase insurance if your company own vehicles due to the requirement set by the motor vehicle department. The department for motor vehicles requires that commercial vehicles have liability insurance.

Commercial vehicles are not obligated to report their insurance policies to the state department. The proof of insurance possessed by commercial vehicle however, must indicate that it is one of the vehicles owned by the company. The proof of insurance owned by commercial vehicle drivers does not have to indicate the number plate of the vehicle.

When purchasing a commercial automobile insurance, companies are usually asked to list the names of their drivers. The insurer will examine the driving history of the drivers. The insurance firm will increase the premium cost if any of the drivers is found to have a bad driving record. Some insurance firms will refuse the application for the insurance policy.

Apart from fleet policies, there are commercial vehicle policies that are meant for smaller fleets. Commercial car insurance policies for smaller fleets of vehicles are mainly for only certain kinds of vehicles. You will have to inquire from the insurance company about what kind of vehicles are protected by the insurance policy. You must provide your insurance agent, if you have one, information concerning the vehicle fleet including the kind of vehicle, weight, engine size etc.

There are lots of factors which determine the price tag for commercial car insurance. These include driver records, business location, and kind of vehicle. If the car is usually parked in a place notorious for car theft, the premium cost will be increased by the insurance company. To reduce the cost, anti-theft features can be installed in all of the vehicles used by the business. Some of the anti-theft devices commonly installed in commercial vehicles include air bag, break lock, seat belts, GPS tracking, alarms etc. You need to inquire from the insurance company to give further information about the approved safety devices.

The drivers who are hired to work for the insured company must possess good driving records and valid driving licenses. High profile cars attract high premium cost because their replacement parts are usually expensive. Middle size sedan cars are charged with the least premiums. The premium charges are also affected by the amount of deductibles you pay.

You also need to specify how the commercial vehicle will be used. The premium cost will be higher if the vehicle will be used for long distances. The premium rates will also increase if you own the vehicles. The premium will be cheaper if the vehicles are owned by the drivers. Make use of the insurance search engine whenever you want to shop for commercial vehicle insurance.