Understanding commercial auto coverage.

If your business makes use of company vehicles or requires employees to drive for work, then you need the protection offered by commercial auto coverage.  But what is this type of business insurance, and what makes it different than personal auto policies?  Here's what you need to know. Personal vs. Commercial Auto When you compare personal and commercial auto policies, you'll notice that both types of insurance offer similar forms of coverage.  For instance, both personal and commercial auto policies will offer coverages such as collision, comprehensive, bodily injury liability, property damage liability, medical payments, and so on.  The main difference between these two types of insurance is the amount of coverage that they offer.  Because businesses face higher liability risks and have more assets to protect than individuals, commercial auto policies offer higher coverage limits and are designed to cover more complex legal issues than personal policies are.  Additionally, because businesses can use standard cars, vans, and even delivery trucks, commercial auto policies are designed to cover a wider array of vehicles than personal car insurance. What Does Commercial Auto Insurance Cover? Commercial auto insurance is designed to cover accidents that occur when you or your employees are using a vehicle for business purposes.  While this coverage obviously encompasses company-owned vehicles, it can also extend to your employee's personal vehicles that they are using for business-related purposes. How Much Does Commercial Auto Insurance Cost? Your commercial auto insurance premiums are based on a variety of factors.  For instance, the following will influence the cost of your coverage:

• Type of insurance you need (regular commercial auto vs. hired and non-owned auto insurance
• Where your business is located
• How much you drive
• The demographics of the covered drivers
• Driving records and claim histories of the covered drivers
• Type of driving (transporting goods, delivering packages, driving clients, or so on)
• Type of vehicles your company owns
• Safety features installed in company vehicles
• Amount of coverage you secure
• Deductibles that you set

This is how commercial auto insurance differs from personal car insurance policies.  Do you have additional questions about this important type of commercial coverage?  If so, then contact the experts at East End Insurance Agency.  We are ready to assist you with all your business insurance needs today.