Commercial auto insurance is a type of insurance that protects the insured vehicle from damage caused by an accident. If you’re involved in a collision, your commercial auto insurance will cover the costs of repairing or replacing your vehicle. Commercial auto insurance can protect you against liability claims, such as those made by passengers or pedestrians involved in an accident with your car. This coverage also covers bodily injury and property damage claims when you’re at fault for the accident.
Commercial auto insurance can include coverage for the following:
Physical damage: Physical damage is a crucial part of commercial auto insurance. It covers damage to your vehicle caused by accident with any object in your path. This includes pedestrians, other drivers, animals, and vehicles.
Physical damage coverage also protects you from theft and vandalism. If someone breaks into your car, steals something from it or damages it in any way, this coverage will help pay for the repairs or replacement costs.
Collision coverage: Collision coverage protects your vehicle from damage from collisions. This type of coverage pays for the repairs to your vehicle if it is damaged in an accident or stolen. Collision coverage is one of the most vital types of auto insurance coverage because it pays for the damage when you hit another car or object. If you only have medical payments coverage and uninsured motorist coverage, you won’t be able to file a claim against the other driver if they cause your car to crash.
Uninsured/underinsured motorist coverage: new jersey commercial auto insurance policies include uninsured/underinsured motorist coverage. This coverage is significant for your business, particularly if you have employees who drive company cars for work. It will also protect your company from lawsuits if one of your drivers is in an accident and causes damage to other vehicles or property.
Uninsured/underinsured motorist coverage will pay for any damages caused by your drivers due to an accident involving another driver whose insurance policy does not cover their losses. This includes medical bills and lost wages if injured while on the job. Your policy will also cover any costs associated with their injuries, such as rehabilitation and physical therapy.
Rental car coverage: Rental car coverage varies by policy and industry. Most policies include coverage for the car you have rented, but they do not cover any additional damage to your rental vehicle that occurs while it’s in your possession.
Coverage is often extended to include liability for bodily injury or property damage that occurs during your rental period. If you’re involved in an accident, this coverage will help pay for medical bills or damages to your rental vehicle.
Rental car coverage also can apply to people who use a company’s vehicles for business purposes. The company must be the primary owner of the vehicle, and proof of ownership must be provided at the time of rental.
Key takeaway
Commercial auto insurance is designed to protect your business and its assets. While it may seem as though you’re paying for the same coverage as personal auto insurance, some crucial differences make new jersey commercial auto insurance unique. The key benefit to having commercial auto insurance is that you can cover your vehicle in a way that personal auto insurance doesn’t allow. This includes covering vehicles for employees and contractors working on their behalf and vehicles for deliveries and service calls.