Commercial Auto Collision Coverage

Businesses need specific insurance coverage for their company-owned vehicles. If you use a vehicle for business purposes, you may be required to carry particular auto insurance policies.

Talk with the agents at Interstate Insurance Services in Newton, Iowa, to learn more about which types of auto insurance you may need to cover your company-owned vehicles.

What Is Commercial Auto Collision Coverage?

Commercial auto coverage provides many of the same benefits as your personal auto insurance policy. You can purchase coverage for any vehicle you plan to drive on public roads.

Collision coverage applies if you or one of your employees is involved in a rollover accident or a collision with another vehicle, animal or stationary object.

Talk to an agent about how your company vehicles are used in the ordinary course of business. They’ll talk with you about who drives your cars, what types of vehicles your company owns and if the car is primarily used for business purposes.

If you use your personal vehicle for business purposes, your personal auto insurance policy may not provide the necessary coverage. Company-owned vehicles must have commercial auto insurance. Hired, rented or non-owned vehicles require hired and non-owned auto insurance. This policy covers vehicles your business uses for work but does not own.

Is Commercial Auto Collision Coverage Required?

While you may be required to carry a certain minimum amount of auto liability coverage depending on your state’s laws, collision coverage isn’t required by law. If the company operates commercial motor vehicles that are regulated by the Federal Motor Carrier Safety Administration, be sure to check to see what types of insurance they require in addition to commercial auto insurance.

If you have a loan or lease, your lienholder requires collision coverage as part of your full coverage auto insurance plan to help protect their financial stake in the vehicle.

Your business may own one or more vehicles outright, in which case collision coverage is optional. When deciding whether you need collision coverage for your company vehicles, consider the car’s age, mileage and condition.

How Does Commercial Auto Collision Coverage Work?

Some vehicles may not be worth enough to justify adding collision coverage to your auto liability policy. If you need to make a claim, the insurance company typically bases the market value of your vehicle on its actual cash value before the loss. A vehicle’s value decreases with age and mileage.

If you decide to forgo collision coverage, make sure your company can afford to replace a damaged vehicle. Without this coverage, you may have to pay for your vehicle repairs out-of-pocket.

Get the Commercial Auto Insurance You Need

Commercial auto insurance is an essential part of your business insurance if you drive for business purposes. The agents at Interstate Insurance Services can help evaluate your situation and get you the commercial auto insurance plan you need.