Car insurance is an important aspect of owning such vehicle, since it can protect you against several potential risks that can occur when operating it. If you are a business owner who owns a fleet of business vehicles, you will need an insurance plan that specializes on these circumstances. Commercial car insurance is more complex than individual car insurance, but it is ultimately worth the investment. This type of commercial insurance lodi ca provides at least three main coverage options.
This type of insurance covers a specific kind of physical damage done to the vehicle. Collision coverage protects the vehicle by having the insurance company pay when the damage is caused by any incident that is considered a collision. Some incidents that qualify as collision include crashing against another vehicle or running against a pole or wall.
Comprehensive coverage targets all incidents that occur to a vehicle that are caused by anything else besides collision. Some causes of physical damage or other incidents besides collision include:
- Weather (flooding, hail, thunderstorms)
- Vandalism or riots
- Explosion or fire
- Animal-caused damage
While comprehensive coverage plans mostly cover non-collision damage, there are some plans that also include collision, especially in a situation where the cause is difficult to determine.
Perhaps the most important component of commercial car insurance is liability coverage. This specific type of insurance protects your company’s assets (cars, trucks and other vehicles) from legal action involving injury or property damage. This coverage protects the company by awarding damages to the affected party. Most states require that company drivers carry liability coverage, and each state has different coverage minimums.
Commercial vehicle insurance varies by provider and sometimes has more specific types of coverage. However, these are the most common options you will find as you seek to protect your business and its assets from various situations.