Commercial Auto Insurance for Cars, Trucks and Vans

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Business Auto Insurance

If you own a large organization with fleets of trucks and specialty vehicles in Maryland or Pennsylvania, you know you need business auto insurance. But if you're a small business owner, you may think your personal auto insurance coverage is enough. 

The truth? Probably not. You'll likely still need some form of business auto insurance. Policies for personal and business auto insurance (also called commercial auto insurance) do provide some of the same types of coverage.

However, these two types of coverage have some important differences. For example, business auto insurance coverage offers higher limits on liability. 

That means the insurance company will pay out more if you or your employees are found responsible for an auto accident resulting in bodily injury or property damage. These differences between personal auto insurance and business auto insurance are designed to protect you and your business.  

If you are wondering whether you need business auto insurance for your company, ask yourself if your car is used primarily for business. If that's the case, your personal auto policy is unlikely to provide coverage.

And even if it does provide some coverage, it may not be enough to protect your business should something happen. A solid business auto insurance plan is the only way to make sure you're completely covered. 

Several questions should be considered when determining whether personal or business auto insurance is appropriate. These include: 

• Who owns or leases the vehicle? 

• Who drives the vehicle? 

• How is the vehicle principally used? For transporting people, delivering packages, going to and from a job site, or carrying tools or materials, including hazardous materials?

• Do you allow your employees to take the vehicle home, or is its use restricted to work hours?

Your answers can guide you in determining if business auto insurance is what you need. Your Keller-Brown Insurance Protection Analyst will go over these types of auto insurance questions with you to make sure you have the right coverage at the right price to protect you and your business.

Now you may be wondering "Where do I find business auto insurance near me?" Or "How do I find commercial auto insurance in PA?" Or "How do I find business auto insurance in Maryland?" Or even "How do I find cheap commercial auto insurance?"  

Read on to find out more information on what commercial auto insurance is and how much it costs.

What is commercial auto insurance?

Commercial auto insurance provides coverage for any vehicle used by your company in the course of carrying out its business. Vehicles covered may include but aren't limited to: 

• Car 

• Van

• Truck 

• Trailer

As mentioned above, the main advantage of business auto insurance is the amount of liability protection it provides. 

According to the Insurance Information Institute, "In general, only a Business Auto Coverage Form can provide the level of liability protection that even a small business needs to cover the potential damages in a serious accident."

Commercial auto insurance protects your business against third-party claims for bodily injury or property damage sustained in an auto accident when:

• Your business owns, hires, or leases vehicles  

• Your employees drive business-owned or borrowed cars or trucks

• You have non-employees in your vehicle for business activities 

Here are some real-world examples to illustrate when business auto insurance is needed using the above criteria: 

• A business owner leases a van on the weekends to transport fresh produce to a York County farmer's market 

• Employees regularly drive the company car to the office supply store

• The owner of a landscaping business drives potential clients around the city to see examples of her work

If you are thinking that business auto insurance is the right choice to protect you and your business, the next consideration is cost.

How much is commercial auto insurance?

A common question we hear is, "How much does business auto insurance cost?"

The cost of business auto insurance coverage is dependent on many factors, including: 

• The size and type of vehicle 

• Safety devices such as anti-lock brakes, front and side airbags, and automatic seat belts 

• Anti-theft devices

• Garage location 

• Average mileage driven

• How the vehicle is used 

• Age of vehicle 

• Desired coverages

Your driving and claims history will be taken into consideration. Your insurance history (have you ever let your auto insurance coverage lapse?) will also be looked at.

It's important to note that you are required to carry liability insurance on an auto, but it's up to you whether or not you want to include physical damage and the cost to repair or replace the vehicle if involved in an accident. If you want insurance to pay to fix or replace your vehicle, you need to add Comprehensive or Collision coverage and choose a deductible.

Whether you choose a low or high deductible is another factor in determining the cost of business auto insurance. The deductible is the amount of money you must pay out of your pocket for a loss or claim before the insurance company pays on the claim. 

You can choose whether you want a low deductible or a high deductible. When deciding which kind of deductible is best for your business, remember this: the higher the deductible, the lower your premium will be. 

For example, if you have a deductible of $1,000 and file a claim for $2,500 for damages incurred due to an accident, you would be required to pay the initial $1,000 and your insurance provider would pay the remaining $1,500. The monthly premium for a business auto insurance policy with a $1,000 deductible will be less than for a policy with a $250 deductible.

There are some other important considerations as you secure business auto insurance coverage, like: 

• If your vehicle has specialization or customization like ladder racks or lettering, you may want to include that extra value in your insurance policy so it can be replaced at the time of a claim. 

• If your vehicle is crucial to your organization and without it, you would lose money, you may want to consider adding coverage for loss of business income. This coverage is especially important for people with food trucks or trailers. 

• You may want to consider other add-ons like rental reimbursement, towing, and gap coverage. 

As far as liability coverage goes, it is generally recommended that business owners take out a business auto insurance policy with a liability limit of at least $1 million. According to the Insurance Information Institute, "The higher limit does not add a great deal to the premium, considering the amount of additional protection it provides." 

Business auto insurance coverage in Maryland and Pennsylvania typically includes:

• Liability 

• Collision and comprehensive 

• Medical payments

• Uninsured motorist 

• Comprehensive

• Collision 

It's important to note that not all business vehicles owned by your company need the same coverage. That's why it's possible to list each vehicle individually on your insurance policy and choose different coverages based on usage and other factors.

Do you have questions about Business Auto Insurance?

Contact an insurance agent at Keller-Brown Insurance Services today to answer any questions about Business Auto Insurance or for a free review and insurance quote for Business Auto Insurance. And don't forget, as an independent insurance agency, we represent several top rated insurance companies. We have the flexibility to help you find coverage at competitive premiums for business, home, auto, and more.