If you own a business, the law requires you to get insurance on your vehicle(s). Some states even require that you carry auto insurance if you are over twenty-one years old. Liability coverage protects you for damages that you have been awarded in a lawsuit. The amount awarded in a lawsuit is usually based on the person’s earning capacity, whether or not he or she has any insurance, and the type of vehicle used. If a person’s automobile is damaged due to the negligence or fault of others, they may be able to file a personal injury claim against the other person, and you may be covered by liability and/or underinsured motorist insurance.
Most states require that you purchase personal injury protection (PA) and/or uninsured motorists coverage (PIU) for property damage and bodily injury that can result from a car accident occurring while you or somebody else in your company is operating on public business. Many states also require that you have uninsured or underinsured motorists coverage (UIU) and/or health coverage (HIP). If you own more than one vehicle, you should also consider purchasing collision coverage for vehicles involved in an accident with others that are not your company’s employees. If you are in the business world, you are probably already familiar with auto liability, but some of the options may be new to you.
One option that many commercial auto policyholders do not think to include is commercial property damage liability. This coverage covers your company for damage to or theft of real estate owned by you, as well as damage to or theft of your company vehicles. The cost of this coverage depends on a number of factors including the value of the property, the total number of company vehicles you operate, the total number of policyholders, and the number of cars on your property. You may want to consult your independent agent about this coverage to ensure you have adequate coverage.
Another item that some policyholders do not include in their Commercial Auto Insurance policy is medical payments coverage. Medical payments coverage pays medical expenses for customers who are injured in a car accident that was your fault, as well as passengers in the other car. Because there are many unique situations involving injuries to people, it is sometimes necessary to consider paying out of pocket for medical expenses incurred. This coverage is separate from your regular policy, and most independent agents can help you choose the right type of medical payment coverage to meet your needs. This is often an expensive item, so you want to be sure to discuss it with your agent before purchasing it.
Collision and comprehensive coverage are two additional types of collision and comprehensive auto coverage you should consider purchasing. Collision coverage pays for damages to your vehicle in an accident, regardless of who is at fault in the accident. Comprehensive coverage pays for damage to property that is inflicted in an accident, as well as any bodily injury that is inflicted by the other driver or vehicle involved in the accident. Bodily injury is covered by property damage liability coverage, which is subject to a deductible that must be met each month. Most policies will contain a limit on the amount of bodily injury that can be inflicted.
The third category is uninsured or underinsured motorists coverage. This coverage will pay for damage that is inflicted on other vehicles that are driven by people that are either uninsured or do not have enough insurance to cover the damages. This could include vehicles that are in an accident with you, cars that you hit, trucks or vans that you hit, or motorcycles or other vehicles that you hit. Uninsured motorists coverage does not cover your car or your passengers. If someone is operating a car without enough insurance, they are considered uninsured. Therefore, when you have an accident with one of these types of vehicles, the Insurance company of the person who is operating the automobile is not expected to pay for the accident.
The final type of insurance is physical damage coverage. It will pay for damage that is inflicted on your insured vehicles. This includes damages incurred from fire, theft, vandalism, impact of a bomb, collision, and so forth. Be sure to inquire about the physical damage coverage offered by your Insurance agent and make sure that it matches up with the other vehicles that you own or have purchased.
You should not settle for the minimum type of coverage provided by your Insurance Company. If your vehicles are worth more than the minimum, then you should push for more physical damage coverage included in your policy. You can usually increase the amount of your deductible in order to get a higher level of insurance coverage on your vehicles. When you start talking to an Insurance agent, make sure you are clear on exactly what coverage is provided through your various Insurance policies. You want to be fully protected and you want all of the advantages that an Insurance policy can give you.
