How Does Commercial Car Insurance Work??

Commercial auto insurance works by providing insurance coverage or any vehicle that your use for business purposes, and for your commercial drivers.

This strategy can provide much higher limits, in $1 million dollar increments, to cover the costs of liability claims and law suits and protect the business financially.

What is commercial car insurance mean?

Commercial vehicle insurance is a policy of physical damage and liability coverages for amounts, situations, and usage not covered by a personal auto policy. This type of business insurance covers a variety of vehicles—from automobiles used for business, including company cars, to a wide variety of commercial trucks.

Do I need commercial insurance?

Commercial insurance vs personal insurance

If you’re a sole proprietor, you might only need a personal auto insurance policy. Required Business Liability Limits – If your business vehicle requires higher liability limits, you will probably need a commercial auto insurance policy.

Is commercial auto insurance more expensive?

You likely need a separate commercial policy if you use your car primarily or frequently for business. Most well-known insurers offer commercial auto insurance. Because it’s typically more expensive than personal auto coverage, getting several quotes is the best way to find affordable rates.

Photo in the article by “Geograph”