What Does Commercial Auto Insurance Cover?
2 Answers
Here are the main coverages included in commercial auto insurance: 1. Collision Insurance: Compensates for vehicle damage caused by natural disasters or accidents. Recommended for novice drivers. 2. Third-Party Liability Insurance: Covers compensation for bodily injuries or deaths of third parties caused by the policyholder. This is mandatory as it provides protection for both yourself and others. 3. No-Fault Insurance: An add-on that transfers the policyholder's liability to the insurance company, reducing personal losses. Highly recommended if you already have Collision and Third-Party Liability coverage. 4. Theft Insurance: Compensates for damages caused by vehicle theft, robbery, or hijacking. Recommended for new car owners without garages. 5. Passenger Liability Insurance: Covers losses suffered by drivers and passengers due to traffic accidents. Premiums are usually charged per seat. Recommended for novice drivers or family vehicles.
I've been driving for over a decade, and commercial insurance is crucial. Common types include third-party liability insurance, which covers medical expenses and damages if you hit someone; vehicle damage insurance for repairing your own car, like after a scrape, so you pay less out of pocket; passenger liability insurance protects passengers in case of injuries from accidents; comprehensive theft insurance fully covers if your car is stolen; and there's also no-deductible insurance, which means the insurer pays more during claims, sparing you the deductible. Additional options like glass insurance and waterlogging insurance depend on local climate—for example, I live in the south, so I add waterlogging insurance for flood protection. When buying, consider your driving frequency; if you take long trips often, it's wise to get full coverage to avoid big losses from accidents.
