What is Commercial Auto Insurance?
Commercial auto insurance is the type of insurance that a business uses for their fleet of vehicles, the personal auto insurance that people have for their vehicles will not be effective for a business.
The commercial vehicles need a different type of coverage for several reasons; the first is there are different people driving the vehicles other than the owner. The second reason is many times the business vehicle fleet are rental vehicles that are leased for an extended amount of time. These are two of the reasons that commercial auto insurance is needed when a business is looking to insure their fleet of vehicles.
Obtaining the commercial auto insurance policy is not unlike personal auto insurance, there will be information needed including the types of vehicles, model numbers, the year, make and mileage. There might be questions about the drivers driving record and what the vehicles will be used for, the approximate amount of miles per day that will be put on the vehicle and the amount of days per week it will be used. The answers provided to these questions will allow the proper amount of insurance policy to be issued for the business vehicle fleet.
It is important for businesses to have commercial auto insurance, because there are different drivers and the vehicles spend more than the average amount of time on the road in traffic. This means they have more than the average chance of being involved in an accident.