Your Commercial Auto Insurance Agency
At Tatum Insurance, we understand the importance of commercial vehicles in your business. For companies that need vehicles to do business, commercial auto insurance is necessary. Making the right decision when it comes to commercial auto insurance not only protects your company’s vehicle, but it also provides coverage for the items and driver inside. As an independent agency, we offer you unbiased professional advice to help you choose the right policy for your business.
Understanding Commercial Auto Insurance
From collisions to injuries, commercial vehicles in your business have many risks. However, many companies consider their vehicles as a crucial component to their business. This means having the right coverage in place is just as critical as having the vehicles.
Commercial auto insurance is a policy which provides financial protection for the vehicles you operate during business hours. It protects your fleet from physical damage, and it provides liability coverage for situations, usage, and amounts not covered by personal auto insurance. This type of policy has coverage for a variety of commercial vehicles including company cars, and various commercial trucks and trailers.
Commercial Auto Insurance Coverage Types
Commercial auto insurance is typically meant to protect businesses from unforeseen dangers. It has higher coverage limits than personal auto policies. This policy safeguards a company and improves chances of continuing business operations after an unfortunate event. Types of coverage for commercial vehicle insurance are:
- Collision Coverage
- Comprehensive Physical Damage Coverage
- Uninsured Motorist Coverage
- Medical Payments Coverage (MedPay)
- Bodily Injury Liability Coverage
- Property Damage Liability Coverage
A collision policy pays to repair or replace a company’s vehicle after a peril that is covered by the policy. It provides physical damage coverage for vehicles that collide with another vehicle or object. This policy also protects your vehicle against rollovers and hit-and-run accidents. Collision coverage is usually purchased with comprehensive insurance.
Comprehensive Physical Damage Coverage
Comprehensive coverage pays the cost of repairing or replacing your company vehicle after it’s damaged by incidents other than collisions. For instance:
- Falling Objects
- Weather-Related Damages
- Colliding To An Animal
- Glass Breaking
Comprehensive insurance policies and regulations around it differ in every state. Some states offer comprehensive insurance with full glass protection, while others have no deductible for glass claims. In other states, a photo inspection is required for you to purchase comprehensive coverage.
Uninsured Motorist Coverage
Uninsured motorist coverage compensates you for injuries you sustain after an accident with a driver who does not have liability insurance. This policy also protects you when the other driver doesn’t have enough liability coverage to pay for damages.
This coverage will guard you against hit-and-run incidents too. Uninsured motorist insurance options such as limits and mandatory requirements vary from state to state. Tatum Insurance agency will help you determine available options and the most suitable choice for your business.
Medical Payments Coverage (MedPay)
Medical payments coverage protects you no matter who is at fault for the accident. This policy pays medical bills for you and any passengers injured in your vehicle during a crash. You are required to select a limit for MedPay coverage. The threshold determines the maximum amount of money your insurer will pay for each person injured in an accident. MedPay may be mandatory in your state. However, it might not be required in other states and situations.
Bodily Injury Liability Coverage
If you are at fault for causing an accident and people are injured, your bodily injury insurance will compensate the victims. This policy also pays for related expenses which may include:
- Hospital and Medical Bills
- Nursing Care
- Lost Earnings
- Pain and Suffering
- Funeral Cost
Bodily injury liability protects you from paying these costs out of pocket. It also pays for the legal process in case you are sued in a court of law. You are required to select a limit for this policy which is either a split limit or combined single limit (CSL).
Property Damage Liability Coverage
If you, unfortunately, cause an accident and damage another person’s property, this policy will pay for those damages. Damaged property may be a fence, house, or a mailbox up to your selected policy limit. Property damage insurance will pay for your defense in a court of law if the property owner sues you. This policy is mandatory in most states.
Qualifying For Discounts
Insurers offer discounted rates to customers who meet certain conditions. There are many ways to qualify for these discounts and save on your insurance premiums. Whether your company owns limos, trucks, or buses, you can get discounts and still be covered adequately. Common commercial auto discounts include:
- Business Experience Discount
- Commercial Driver’s License Discount (CDL)
- Paid In Full
- Multi-Policy Discount
Business Experience Discount
Perhaps your business has been operating for at least three years, you may qualify for a discount of up to 5 percent.
Commercial Driver’s License Discount (CDL)
If your driver has a valid commercial driver’s license, your business can qualify for discounts of up to 20 percent.
Paid In Full Discount
Paying your insurance premiums upfront qualifies you for discounts of 5 percent to 15 percent instantly.
If you have purchased many policies from the same carrier, your company is in a better position to get a multi-policy-discount.
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