Commercial Auto Insurance

Why get Commercial Auto Insurance?

This type of insurance is specifically structured for stand-alone motor fleets. It is insurance against damage to vehicles and any loss to a third party’s vehicle or property.

It is a vehicle insurance policy that provides financial protection for a business’ vehicles as well as its drivers. This type of insurance also covers medical injuries for employees who are involved in on-the-job collisions.

What can be defined as Commercial vehicles?

These are vehicles and trailers that a business or company uses to transport job-related materials, goods or equipment.

Who may require Commercial Auto Insurance?

As a general rule, a vehicle that gets regular business use is defined as one that is used for commercial purposes. Driving to and from your principal place of work is considered commuting, so this won’t qualify for commercial insurance.

If you:

  • Carry equipment such as ladders, supplies, tools etc
  • Carry hazardous material
  • Carry housekeeping equipment for a business
  • Offer towing for hire
  • Specialise in the delivery of goods
  • Operate in the trucking business
  • Are a taxi driver

What factors affect your Commercial Auto Insurance premiums?

The vehicle type

The type of vehicle you are insuring will essentially determine your premiums. If you are a taxi driver you may be on the road more often than a delivery truck for a small company, for example. So you would pay different premiums.

Safety devices such as airbags and automatic seatbelts

Any safety features that are installed on your vehicle will lower your premiums to a certain extent. Any measures taken to reduce risk can go a long way towards this.

You need to consider whose name the vehicle is registered in.

Commercial insurance policies allow you to list employees as drivers so that the insurance company can properly underwrite the risk on the vehicle.


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