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Everything You Need To Know About Commercial Auto Insurance

By November 3, 2022Personal Insurance

Commercial auto insurance is vital for any business that owns or operates vehicles as part of its operations. There were 2,342 fatal crashes in Indiana alone from 2018 to 2020, emphasizing the importance of this.

As a business owner, protecting your company and people is always a top priority, and one of the best ways to do that is by ensuring you have the right insurance in place.

Whether you have a fleet of trucks or just a single company car, if you use it for business purposes, you need to have commercial auto insurance.

At RJL Insurance Group, we understand the unique needs of businesses when it comes to commercial auto insurance. We work with various companies in Ohio and Indiana, and we can also help you find the right policy for your specific needs.

What Is Commercial Auto Insurance?

Commercial auto insurance is a type of insurance that provides coverage for vehicles used for commercial transportation purposes. It can provide financial protection to your business and employees against a variety of risks, including:

Liability for injuries or damage caused by your vehicle
Collision or comprehensive damage to your vehicle
Medical payments for you and your passengers
Uninsured or underinsured motorists

One important thing to remember is that commercial auto insurance differs from business auto insurance. The main difference is how business-related vehicles are used.

Business auto insurance policies provide coverage for vehicles traveling through regular traffic. For example, a courier who transports documents and small packages around the city would benefit from a business auto insurance policy. Business auto insurance policies will not cover vehicles used for off-road or heavy-duty purposes.

On the other hand, commercial auto insurance is designed for specialized vehicles used in more specific operations. This includes things like large delivery trucks, construction vehicles, and any other type of vehicle that’s not typically used for regular traffic.

It’s also important to note that personal auto insurance policies typically do not cover vehicles used for business purposes. In the same way that it will not provide coverage if you use your personal vehicle for business purposes. That’s why it’s so important to have a separate commercial auto insurance policy in place to be fully protected.

What Does Commercial Auto Insurance Cover?

Commercial auto insurance can cover various risks, but the exact coverage depends on your chosen policy. Some of the most common types of coverage include:

Collision Coverage

This type of coverage can help pay to repair or replace your vehicle if it’s damaged in a collision or an accident with another car or object.

Comprehensive Coverage

Comprehensive insurance can help pay to repair or replace your vehicle if it’s damaged by something other than a collision. This can include things like vandalism, theft, fire, or weather damage.

Liability Coverage

This type of coverage can help protect your business from bodily injury or property damage caused by your vehicle if you’re found responsible for causing an accident that injures someone or damages their property. It can also provide coverage if one of your employees causes an accident while operating a company vehicle. This coverage can include legal expenses if you’re sued as a result of the accident.

Uninsured or Underinsured Motorist Coverage

This type of coverage can help protect your business if you or your employees are involved in an accident with another driver who doesn’t have insurance or doesn’t have enough insurance to cover the damages they caused.

Personal Injury Protection Coverage

Personal injury protection coverage can help pay for medical expenses and lost wages if you or your passengers are injured in an accident while operating a company vehicle, regardless of who’s at fault.

Other Coverage

There are a variety of other coverage options that you can add to your commercial auto insurance policy. These can include things like rental car reimbursement, towing and labor coverage, loading and unloading coverage, bobtail coverage, and more.

When Do I Need Commercial Auto Insurance?

Any business that owns, uses, leases, or hires vehicles for business purposes should have commercial auto insurance. These business purposes can include:

Transporting goods or materials
Making deliveries
Providing services, such as landscaping or snow removal
Towing trailers or other equipment
Carrying passengers for a fee, such as a taxi or ride-sharing services
Traveling to meetings, job sites, airports, or other locations
Transporting flammable or toxic substances
Trucking, hauling, or freight operations

If you’re unsure if your business needs commercial auto insurance, it’s always best to avoid caution and get a policy in place. Most state and federal laws require some minimum amount of liability coverage, so you may be required to have a policy even if you don’t think you need one.

It’s also a good idea to speak with an insurance agent, such as those at RJL Insurance Group. They can help you assess your risks and determine the best coverage for your needs.

Can You Write Off Commercial Auto Insurance?

The answer to this question will depend on a few factors, such as the type of business you have and how you use your vehicles. In general, though, commercial auto insurance costs are tax-deductible. This can include the premium you pay for the policy as well as any other related expenses.

To learn more about whether or not you can write off commercial auto insurance, it’s best to speak with your accountant or insurance agent. They can help you determine your eligibility for this deduction and how to claim it on your taxes.

How Much Does Commercial Auto Insurance Cost?

The cost of commercial auto insurance will vary depending on several factors, such as:

The size and type of business you have
The number and types of vehicles you use
Level of business and driving risk involved
You or your employee’s driving history and record
Amount of policy coverage

In general, you can expect to pay anywhere from a few hundred to a few thousand dollars per year for coverage.

To get an idea of how much commercial auto insurance will cost for your business, it’s best to get quotes from a few different insurance providers. Make sure to compare insurance policies thoroughly, as policies can vary significantly in terms of coverage and cost.

How Does Commercial Vehicle Insurance Work in Indiana?

In the state of Indiana, businesses are required to have a minimum amount of liability insurance for their vehicles. The minimum limits are:

For bodily or personal injury from an uninsured motorist: $25,000 or $50,000 per affected person or victim;
For bodily or personal injury from an underinsured motorist: $50,000 per eligible accident;
For property damage liability: $25,000 per eligible accident;

These minimums are just that — the bare minimums. It’s always a good idea to carry more coverage than the state requires, as an accident can quickly cost much more than these minimums.

To get the right commercial auto insurance policy in Indiana, you’ll need to find an insurance company that offers this type of coverage. Be sure to shop around and compare policies before buying, as coverage and costs can vary greatly.

RJL Insurance Group’s expert advisors can help you assess your risks and choose the right coverage for your needs. You can then purchase a policy and customize it to meet your business’s needs.

Why Choose RJL Insurance Group for Your Insurance Needs?

At RJL Insurance Group, we have years of experience helping businesses in Ohio and Indiana get the comprehensive insurance coverage they need. We offer a wide range of insurance products, including commercial auto insurance.

Our top priority is to help you make informed decisions about your insurance coverage. Our team of expert insurance advisors will work with you to assess your risks and determine the best coverage for your needs.

We understand that one size does not fit all, and we take the time to get to know your business so we can find the right policy for you. We’ll ensure you have the right coverage to get your business maximum protection.

We understand that every business is different, so we offer customizable policies that can be tailored to fit your specific needs. We also offer competitive rates, so you can get the coverage you need without breaking the bank.

Get Your Insurance Quote Today

At RJL Insurance Group, we specialize in commercial auto insurance and can help you find the perfect policy for your business. Whether you have a fleet of vehicles or just a few, we can tailor a policy that meets your specific business needs.

Get started today by getting a free insurance quote. We’ll work with you to find the best coverage at the most competitive rates. Contact us today to get started.