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On the Road with Commercial Auto Insurance

A Commercial Auto policy addresses the vehicle insurance needs of most commercial entities. The amount of coverage you will need depends on your exposure and how much risk you can afford to take. Our dedicated staff at Arroyo will review this with you carefully to determine the extent of your liability limits and the deductible amounts that reflect your risk tolerance. 

Due to the increased cost of vehicle technology, increasing claims frequency and the daily threat of distracted drivers, businesses must be more vigilant than ever in crafting and enforcing their fleet safety programs.

What’s Covered in A Commercial Auto Policy?

The basic coverages in a Business Auto insurance policy include:

  • Liability: Pays for property damage or bodily injury you cause. Also pays for accident-related legal expenses, such as attorney fees or settlement costs.
  • Medical Payments: Covers medical bills if you or your passengers are injured in a car crash, regardless of fault.
  • Comprehensive & Collision coverage: Pays for theft, vandalism, certain weather events, and for repairs if your vehicle is damaged in a car accident.
  • Uninsured Motorists: Pays for bodily injuries you suffer if somebody who doesn’t have insurance hits your vehicle.
  • Underinsured Motorists: Provides protection when the at-fault driver has insufficient insurance.

Managing Your Commercial Auto Costs

Following are several tips when purchasing Commercial Auto insurance to help you manage costs and ensure you’re properly protected.

  • Check employee-driving records prior to hiring any employee who will drive a company vehicle or use their own vehicle as part of their job. Perform a DMV screening as well because the driving records of employees can impact your premium. Having employees with good driving records listed on your Commercial Auto policy will help keep your premiums in check.  
  • Purchase Non-Owned & Hired coverage. Employees often use their own vehicles for business errands/purposes. Also, you or an employee may borrow a vehicle or rent a car for a business trip. These are situations where a Commercial Auto policy excludes coverage unless you’ve purchased optional Hired and Non-Owned Auto Liability and Hired Auto Physical Damage coverage. It’s a small additional cost to ensure you’re protected.
  • Consider buying Rental Reimbursement coverage. If your company vehicle is damaged in an accident and has to go into the shop for repairs, this coverage will help to cover the costs of renting a replacement vehicle.
  • Purchase higher limits for better protection. Understandably you want to keep your premiums low, but if you don’t have sufficient coverage to respond if you’re sued, your business assets will be impacted. In today’s litigious society, people sue quickly and judgments can be in the hundreds of thousands of dollars or more.

Automotive collisions present one of the most common occurrences for catastrophic claims. Any business with significant over-the-road exposure or delivery frequency should seriously consider purchasing Excess Liability limits over the primary Commercial Auto policy.