Personal vehicles that are used for business purposes and involve in accident, may not be covered in your personal auto insurance. If you claim for reimbursement you may be instead charged with misrepresentation for using your personal vehicle for commercial purposes. So in order to get insured for your business vehicles, you need to get commercial auto insurance coverage for your business needs and requirements.
Commercial auto insurance coverage is factored on the number of vehicles and the drivers to be insured. If you have few vehicles, then you may probably consider commercial auto insurance coverage but if you have a large fleet vehicles, fleet insurance can be often cheaper than per vehicle policies.
Vehicles that are mostly used for business purposes may include trucks, cars, buses, vans, taxis, etc. In some states commercial vehicles are classified on the type, while in others, they are classified on the weight. Also, in some states there will be mandatory for minimum liability requirement and under-insured liability coverage. Hence the amount paid will be depended on the degree of injury or damage, up to the coverage limits of your policy.
The major factors affecting your commercial auto insurance premiums may include – business location, driver records, and choice of vehicle, deductibles and safety & anti-theft devices. Your business auto insurance costs can be lowered when you have employees enrolled and finished defensive driving course. In such a case, you may be offered competitive prices and discounts. You can also lower costs by choosing least expensive vehicles that are affordable to insure.
So, before deciding to purchase insurance from a company, shop around in online and in person and review the policy before you sign.