Commercial auto insurance covers the cost of repairs and damage to your business-owned vehicles by accident. Every vehicle used solely for work purposes must have in Minnesota.
Business vehicles include company cars, commercial trucks, and vans. Other examples that qualify for commercial auto insurance are box trucks and food trucks.
Whether you use an agent or shop online, getting a commercial auto insurance policy is challenging. While the internet makes it seamless to compare prices and rates from different insurers, it is common to feel confused by all the unfamiliar terms and jargon used in insurance. The decision-making process is often plagued with widespread misconceptions about how insurance works.
Most people think commercial auto insurance policies cover big vehicles such as box trucks, semi-trucks, garbage trucks, and more. But several variations of cars qualify for commercial auto insurance.
Choosing comprehensive coverage for your commercial auto insurance is one of the best ways to protect your business. Don’t hesitate to call our Lake Region Insurance Agency agents for a quote.
1. What Does Commercial Auto Insurance Cover?
Commercial auto insurance is the general cover for liability damages, loss to business autos, and collision or comprehensive physical damage. It also covers medical expenses for drivers and the vehicle’s occupants during the accident due to negligence from an uninsured or underinsured motorist.
It will cover leases and hires for vehicles used for your business operations. You can also receive liability coverage for property damage on bodily injury caused by using one of your insured vehicles.
It has two major physical damage coverage:
- Collision loss: Covers damage due to auto accidents
- Comprehensive loss: Covers damages from weather, theft, and any non-collision causes
The liability coverage included are:
- Bodily injury coverage: Covers any accident-related injuries to others when your drivers are at fault
- Property damage coverage: Covers any accident-related damage to others due to your driver’s fault.
2. Who Needs Commercial Auto Insurance in Minnesota?
Any Minnesota company that uses vehicles in their business operations must have commercial vehicle insurance, whether personal-owned or a fleet owned by the business. Some of these companies include:
- Independent contractors who have to drive some vehicles while on the job
- Freight companies and any company that uses fleets such as vans, autos, and commercial trucks
- Any establishment that has to make deliveries or transport their merchandise to other locations
- Shuttle, limousine, taxi services, and other businesses providing transportation services.
The list is not exhaustive as some vehicle use cases exist where you may need commercial auto insurance in Minnesota in the case of an accident or other issues. For example, using your personal vehicles to carry company work such as delivering or transporting goods will require commercial vehicle insurance. Talk to a reliable Minnesota auto insurance company to find out if you will need auto insurance for any vehicle that services your business purposes.
3. How Does Commercial Auto Insurance Work?
Commercial vehicle insurance covers all vehicles and people that carry out business activities.
Suppose a driver of your business-owned vehicle causes an accident leading to injuries and property damage. The victim may file a claim on your policy and bring a lawsuit against the vehicle or driver. In this case, liability insurance will cover your pay for damages on the policy limit. It also covers the cost of defending your company or the driver against an accident-related lawsuit separate from the policy limit.
4. Coverages Included In a Commercial Auto Insurance Policy
Some of the common coverages include are:
- Collision coverage for accident-related damages to an insured vehicle
- Comprehensive coverage to cover for damaged on insured vehicles from any non-collision causes
- Liability coverage to pay injury damages and damage to property if you are at fault
- Rental reimbursement to cover rental vehicles
- Personal injury protection to pay for medical expenses and income lost due to an accident-related injury
- Uninsured or Underinsured Motorist coverage covers any injury or property damage suffered by the occupants on insured business vehicles.
These coverages will vary by state. Always check with your agent to ensure adequate coverage in your business’s state.
5. How to Purchase Commercial Auto Insurance?
You can purchase commercial auto insurance online or through an independent insurance agent. They will help you understand your vehicle use and how you can optimally cover all of them at a fair pre. Your agent can also guide you through the claim process when an accident occurs.
Going for a single reliable agent for your business insurance will help maximize protection and ensure you don’t pay for unnecessary duplicate coverage.
6. The Cost of Commercial Auto Insurance Policies
The price of commercial vehicle insurance varies based on factors like:
- The number and type of vehicles
- Business type
- Cost of vehicles hired
- Number of drivers
- Amount of coverage
- Business and driving risks
Work closely with your agent to find affordable coverage.
7. Do Commercial Auto Policies Cover Personal Use?
You can cover your personal cars with commercial auto insurance when using them for business purposes. But certain coverage for family members will not apply. Always check with your agent to determine whether you will require additional coverage for family use.
Get the Best Price on Your Commercial Auto Insurance from Lake Region Insurance Agency
Getting commercial auto insurance is easy with Lake Region Insurance Agency. Our agents will help you determine the coverage best fitting your business-specific needs. If you plan to use your vehicle for business or personal use, we will help you determine an appropriate type of policy. Contact us today to get a free commercial auto insurance quote.