Commercial Auto Insurance and 5 helpful notes for you

Meta: One of the aspects that can't be overlooked for business owners, especially new entrepreneurs, is commercial auto insurance. Check out our post to know more.


If you are an entrepreneur, you may have to face numerous responsibilities that keep arising. Without clear guidance, this situation could get overwhelming.

One of the factors worth considering for businesses is commercial auto insurance. As a result of avoiding incurring unnecessary liabilities for your commercial vehicles, it is important and inevitable to secure them in advance.

This particularly applies to vehicles used for business purposes or those that have been registered as commercial vehicles; or vehicles used by employees, whether for deliveries or running errands on behalf of the company.

What is commercial auto insurance?

Commercial auto insurance is an essential coverage for any business or organization that uses business vehicles to transport people, goods, materials or equipment.

In the case of an incident, such as damage or a crash, the business owner can claim and receive compensation that will help afford the cost of repairs.

Business risks are a constant. Thus, when it comes to this form of insurance, it’s important to be knowledgeable about certain requirements. Below are some main helpful facts you should notice to avoid paying out the cash you intend to keep or losing money in the process.

Get Insured in a right way 

It's quite complex to choose the right coverage for your vehicle because there are various types of auto insurance coverage as well as several aspects of an insurance to cover.

You had better pay much attention to insurance needs for typical vehicle classes and also clearly defined requirements for each state.

For instance, a commercial truck insurance in Pennsylvania provides several truck insurance iterations to protect the owner from some possible losses. It includes liability insurance, physical damage insurance, cargo insurance or uninsured and underinsured motorist benefits.

For better results, you should choose policies from an agent that specializes in vehicle insurance, since they understand the intricacies more clearly and can give you such great advice on what to purchase.

Moreover, the kind of insurance also depends on many factors such as the age of driver, gender, whether your vehicle travels interstate, its weight, transported goods, so on and so forth.

Consider carefully

Instead of assuming everything, you should do a careful survey and find out the type of auto insurance you need. Good knowledge will save your money in certain cases.

For example, your motor carrier policy won’t cover you when your truck is used for a personal errand. Don't forget to own a non-trucking liability and physical damage insurance in this case.
In addition, you don’t need to have a separate cargo insurance. You can have one policy and pay one bill if you add your cargo insurance as an endorsement on your vehicle policy.

Furthermore, it is time-saving and energy-saving for you to deal with one company instead of two when an accident damages your vehicle and cargo.

Beware of cheap policies

Low price services sometimes mean you are getting the coverage with the low level. When comparing the average cost of policy from different companies, you should also study the extent and nature of coverage as well as terms and conditions.

Especially, you should be careful if a company offers a relatively lower price compared to other agents.

Don’t hesitate to conduct a background survey on insurance companies based on some main following sides:
  • Its experience and specialization in auto insurance
  • Financial and operating strength, especially adequate reserves to pay out on claims 
  • The extent of coverage 
  • Whether their policies strict or flexible enough to be adapted to your need 
  • Cost of basic and additional coverage 
  • Total value of their policies in relation to time, money and ease of execution.
Have seasoned or well-trained drivers

Your business may rely on your drivers and the decisions they make on the road every day. Thus, if you're planning to hire your own drivers, ensure they pass through an effective screening and evaluating process.

One common method is to evaluate their driving records for violations by getting their motor vehicle record and setting up a scoring system.

If they score below a certain minimum point, they are not appropriate candidates. If they pass this stage, then let them have a drug testing before they are eventually hired.

After all, they must be trained in action to well react in case of a sudden accident. A card with a checklist of these actions must be put in your vehicle as a guide and reminder. The most important point on that card is a number to call when an accident occurs.

Record Evidence

In the case of a crash, visual evidence will support your claim. Thus, it is necessary to record important evidence.

Take pictures of the scene right after the accident. You can install some tools such as cameras and driver cams in your vehicle to help you record what would happen.

In-vehicle cameras may show what the driver sees and monitor behavior or other driver‘ activities while driving such as texting, eating or even taking a selfie.


In a word, the commercial auto insurance policy is beneficial for you in many ways and may give you ‘peace of mind’ only if the process is done rightly. Buying an insurance policy and having insurance companies do their jobs to cover you is really essential. Hopefully, this post will give you helpful notes and information for your considering commercial auto insurance.

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