Commercial auto insurance may not be as commonly availed as other types of insurance. But it’s sort of essential for the class it’s meant for – the small and medium sized business enterprises. Incidentally, that’s the chief difference between commercial insurance for automobiles and other common types of auto cover. This coverage specifically caters the companies having several vehicles.
In order to get more business, various companies engaged in selling commercial policies generally offer various kinds of discounts and reasonable premiums. This type of coverage generally comprises six different types of policies. Only some of the types, like third party insurance are mandatory as per law. Due care should be taken to include only those options on your policy that are relevant to your needs. Otherwise, you will end of up paying too much as premium, because all options have their separate premiums. Having understood the basic difference between auto insurance and other types of policies, it is not out of place to look at some other aspects of commercial policy.
Commercial Insurance – Understanding The Significance
Commercial insurance for vehicles is actually a measure to safeguard your company against possible losses owing to accidents involving vehicles belonging to your company. It is not too hard to imagine the catastrophic effect that accidents involving vehicles of your fleet might have on the financial affairs of your company.
Is It Available Online?
Like other types of indemnity, commercial auto insurance is also readily available online. In fact, you will find much better offers for insuring your fleet online than you would in case of companies having physical locations. Online companies offer handsome discounts as well as comparatively low premium amounts.
However, getting policy entails payment of more money compared to common types. Therefore, you must be doubly cautious to steer clear of fake companies operating through Internet. Even when you procure coverage from companies whose reputation is established, don’t ignore to read the terms & conditions in totality.
What Is It Composed Of?
There is no difference in the composition of a commercial policy and other types. In fact, all indemnity policies are divided into three parts: declaration, insuring agreement and terms & conditions. While it’s important to go through the complete document, specific emphasis must be laid on perusing the terms & conditions part. Careful scrutiny is especially important in case of commercial insurance, because it’s actually a combination of different policies. You should get exactly what you require and what you pay for.
By: Andrina James
Posts Tagged ‘Insurance Coverage’
Commercial Auto Insurance – How’s It Different From Common Insurance Coverage
January 4th, 2010Common Auto Insurance Terms – Car Insurance Terms That You Need to Know
November 28th, 2009
Before you start shopping around for auto insurance, you should get a handle on some of the common car insurance terms. In all reality, the more you know about car insurance, the better chance you’ll have at finding the perfect coverage for your vehicle. Sure, you’d love to think that all companies would be upfront and honest with you about what you need and what you don’t need. But come on, what company doesn’t want to make some profit? This is why having the basic knowledge when it comes to car insurance can make all the difference when it comes to your auto coverage. Read on to learn some common auto insurance terms and then see how much money you can save!
Absolute Liability
This is liability without fault, also known as liability without regard to fault or strict liability. You may see this pop up when something considered contrary to public policy happens, even though the event wasn’t intentional.
Liability Insurance
In a nutshell, liability insurance is risk transference. Not only does give you protection against loss that arise from third parties, it covers your legal liability from injures to other people or their property.
Collision Insurance
This type of insurance is optional. Collision insurance provides coverage for the insured’s vehicle, subject to a deductible, that is involved in an accident. Basically, this covers you whether the accident was your fault or not.
Deductible
Also known as excess, this is the amount you agree to pay toward the total amount of an insured loss, whether it is per claim or per accident. Usually a fixed rate, the deductible must be paid before the policy benefits can be applied to a claim.
Uninsured and/or Underinsured Coverage
This type of insurance is great protection for you and your family if you happen to be hit by someone without insurance coverage. Having uninsured or underinsured coverage allows you and your family’s bodily injury to be paid for.
Comprehensive Coverage
Comprehensive insurance covers your vehicle in case of non-collision related incidents such as fire, theft, weather, impact with animals and vandalism.
Gap Insurance
This insurance is good for people who have just purchased a new vehicle. In a nutshell, new cars depreciate right after leaving the dealership lot. Gap insurance covers the difference between what an insurance company says your car’s worth and what you would actually owe on the vehicle.
Gap insurance usually only covers theft and accidents, but that can vary depending on the insurance policy. You can also purchase gap insurance from the dealership. However, you can expect to pay even higher premiums.
Property Damage Coverage
This covers any damage you may cause to another’s vehicle. Basically, if you cause it, you’re covered.
Claim
This is your request for reimbursement concerning a loss covered by your auto insurance policy.
Full Coverage
Actually, full coverage isn’t really what it sounds like. Technically, full coverage is a combination of collision and comprehensive coverage, meaning that your car’s physical damage is covered.
Secondary Driver
Also known as an occasional driver, this person is covered for driving the insured vehicle. However, this coverage does not mean that they’re the primary driver.
Shop Around To Find Cheap Auto Insurance
Familiarizing yourself with the above common car insurance terms will result in you making a wise decision when it comes to your auto coverage. Take your time and shop around before committing to a provider and you will be find the cheapest auto insurance company that will still meet your coverage needs.
The above terms are just the ones most frequently talked about or that affect the majority of drivers on the road. There are more common car insurance terms, but they are mainly state specific. The best way to find out what’s required in your state is by visiting your local DMV’s website.
By: James J. Robinson