Commercial auto insurance works much the same way individual auto insurance does, with a few small changes. This is a kind of insurance that a company is going to own rather than a person. The insurance is on the vehicles rather than a specific driver and most states require it for firms that have a number of automobiles that are used in day-to-day operations.
Companies need to take out this kind of coverage if they own, rent or lease numerous vehicles that are used over the course of the business day. They also need the coverage if employees of the firm are usually driving company cars for their work. They should also have this coverage if employees are using their own vehicles to carry out work orders for a majority of their workday.
Commercial auto insurance auto insurance should also be carried if a business owner drives cars for personal and professional uses. Auto insurance companies are looking for this kind of coverage when they see that a car might be on the road and in use more often than you are typically going to see when you are talking about an individual who is just driving their car for their personal use.
When it comes to the kind of coverage companies are going to get with this kind of coverage, it’s basically the same as what you will see when talking about comprehensive coverage for an individual. The difference is that it is going to cover more than one vehicle and can even be purchased on a fleet of vehicles. Usually, this type of coverage is one that you will have when you want to make sure your employee is covered if they get into an accident during the workday. They would not be using their own insurance if they are driving a company car. This makes sure the company is well covered in that instance.