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Answers to the Frequently Asked Commercial Auto Insurance Questions

commercial auto insurance questions

Answers to the Frequently Asked Commercial Auto Insurance Questions

If you are buying commercial auto insurance for the first time, you may have several questions about it, including its cost, deductibles, covered perils, minimum and maximum coverage limits, etc. That is why we have answered some common commercial auto insurance questions, helping you make an informed decision concerning coverage.

What Is Covered Under Commercial Auto Insurance?

A commercial auto insurance policy reimburses the losses/expenses incurred after an accident involving your company-owned vehicle, including third-party medical bills and property damage costs. It also covers:

  • Legal expenses if you are sued
  • Repair/Replacement costs if your car is stolen, vandalized, or damaged by natural disasters

Does Commercial Auto Insurance Is Mandatory for My Business?

Excluding Virginia and New Hampshire, other states in the US require businesses to carry at least a minimum amount of commercial auto insurance.

Will My Personal Vehicle Need Commercial Auto Insurance?

No, commercial auto insurance is not for personal vehicles.

Does Your Company Use Non-Owned Vehicles?

If your company uses non-owned vehicles to complete business operations, such as your employees’ vehicles or leased cars, you must purchase hired and non-owned auto insurance to cover them against accidents, collisions, and theft.

How Long Will It Take to Get Commercial Auto Insurance?

It depends on how you choose to buy the commercial auto insurance policy. It will take only a few minutes if you choose to buy it online.

How Much Liability Coverage Do I Need?

You can decide the coverage amount depending on your state’s minimum requirement, business risk factors, and the number of cars you want to insure. You can choose between two liability payout limits, including:

  • Split limits – Covers bodily injury per person, bodily injury for all people, and property damage for all property in the accident. For example, if you choose split limits of $30,000/$45,000/$20,000, your policy will pay $30,000 for every individual who suffered an injury, $45,000 for all injured people, and $20,000 for all damaged properties.
  • Combined single limit – Provides one payment for an accident. For example, if you choose the combined single limit of $100,000, your policy will pay $100,000 for all damages.

What Should Be My Deductible?

A deductible is an amount you should pay before your policy kicks in. Increasing the deductible will lower your premiums. However, choose affordable deductible limits to ensure you can pay it after an accident.

How to File a Commercial Auto Insurance Claim?

To file a claim, contact your agent and provide them with details about the incident, basic information about your company, and policy number. They will do the rest to process your claim.

Are There Ways to Decrease Premiums?

You can follow these tips to decrease your premiums:

  • Hire drivers with a clean driving record
  • Include safety features (alarms and anti-theft devices) in your car to minimize thefts
  • Store/park your vehicles securely

Can I Cancel My Active Policy?

Canceling your policy before:

  • It expires can leave you paying more while buying the same policy again in the future.
  • Buying another policy puts you at risk of infringing state laws.

These insights will help you choose the right commercial auto insurance for your business.

Consult with Remland Insurance to Learn More About Your Auto Insurance Policy

Whether you need a basic commercial auto insurance policy or a customized policy for extensive protection, contact us today at Remland Insurance Services Inc, and we will help you.


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