While company vehicles may be valuable and necessary, they also come with significant risks and exposures, as even minor incidents could incur sizable financial losses. Organizations should prioritize appropriate loss control measures, such as commercial auto insurance, to effectively manage vehicle-related risks.

What Is Commercial Auto Insurance?

Commercial auto insurance is a specialized form of coverage tailored toward organizations that use vehicles for business purposes. Like many insurance products, a commercial auto policy establishes a contractual agreement between a company and its carrier. In exchange for regular (e.g., monthly) premiums paid by the former, the latter may provide financial aid in response to covered vehicle-related incidents.

Commercial auto insurance may entail various coverages and financial protections, such as the following:

• Commercial auto liability insurance can provide financial relief if your company is at fault for an accident on the road from which others accrue losses.
• Collision coverage can help pay to repair company vehicles if they are damaged in a crash.
• Comprehensive coverage may financially protect vehicles from noncollision incidents, such as fires and severe weather.
• Uninsured/underinsured motorist coverage may help policyholders recoup losses even if another party lacking adequate insurance is at fault.
• Medical payments coverage may help pay for drivers’ and passengers’ health care costs following an accident.
• Hired and non-owned auto insurance may assist in limiting out-of-pocket losses should an employee be at fault for an accident while using a personal or rented vehicle for business purposes.

How Much Does Commercial Auto Insurance Cost?

Various criteria may influence commercial auto coverage rates. When calculating risk levels and determining costs, commercial auto insurance companies may consider the following:

• Industry
• Location
• Insured vehicle details (e.g., type, make, model and age)
• Driving records of employees
• Contents or cargo carried by company vehicles
• Claims history
• Policy details (e.g., deductibles and limits)

How to Get Commercial Auto Insurance

As a dedicated member of the Virginia Beach community, Matt Roenker Insurance Agency prides itself on helping businesses throughout the area secure and maintain appropriate coverage. Contact us today to learn more or to get a personalized commercial auto policy quote.