What Does Commercial Auto Insurance Typically Cover?

Every time a company vehicle hits the road, it faces potential hazards that could affect the entire business. Commercial auto insurance provides Oregon business owners with coverage that can help address these risks.

Commercial Auto Insurance Coverage Options

Commercial auto insurance covers work-related driving and vehicles, and provides additional coverage beyond what personal auto policies typically include. Here’s what you’ll find in most standard policies:

• Liability Coverage

This is a core component of any commercial auto policy. Liability coverage may help pay for bodily injury or property damage that your business vehicles may cause to others in an accident. State law requires minimum liability limits, but many businesses often opt for higher limits for broader coverage.

• Collision Coverage

Collision coverage can help cover the cost to repair or replace your business vehicle if it’s damaged in an accident, regardless of who is at fault.

• Comprehensive Coverage

Comprehensive coverage may cover your vehicle against noncollision incidents, such as theft, vandalism, fire or damage from severe weather. This coverage can be crucial for businesses that have vehicles parked outside or used in multiple locations.

• Uninsured/Underinsured Motorist Coverage

If your business vehicle is involved in an accident with an at-fault driver who has little or no insurance, this coverage helps pay for injuries or damage that aren’t covered by the other party.

Additional Coverage

Depending on your needs, you may also consider options such as medical payments coverage, hired and non-owned auto coverage or roadside assistance. Our team can help you determine which add-ons are best suited for your business.

Factors That Can Affect Your Premium

Several aspects can influence your insurance costs, including:

1. Type and Number of Vehicles

The kind of vehicles you use, such as cars, vans or trucks, and the total number in your fleet, may impact your premium. Larger or specialized cars can cost more to insure.

      2. Vehicle Usage

How your vehicles are used can affect your rates. For example, vehicles that travel long distances or are used for deliveries may carry higher premiums than those used occasionally or for local errands.

      3. Driving Records

The driving history of your employees can play a significant role in determining their safety. Clean records may help lower your premiums, while accidents or violations can increase costs.

      4. Coverage Limits and Deductibles

Choosing higher coverage limits or lower deductibles can increase your premium, while opting for lower limits or higher deductibles may result in more affordable rates. It’s important to balance cost with the level of coverage you need.

      5. Location

Where your business operates and where vehicles are parked can also influence your premium. Areas with higher traffic or theft rates may result in higher costs.

      6. Claims History

A history of frequent claims can lead to higher premiums, while a clean claims record may help keep your costs down.

How We Help Oregon Businesses

At World of Insurance LLC, we partner with local business owners to build a policy that provides the right coverage for their vehicles and goals. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.