What Does Commercial Auto Insurance Cover?

Using a personal vehicle for work can leave you fully responsible for accident costs. That’s because standard car insurance doesn’t cover work-related driving. Instead, you’ll need commercial auto insurance.

Key Commercial Auto Insurance Coverages

Commercial auto insurance can cover vehicles used for business, including cars, vans, trucks and specialty vehicles. Here are the main types of coverage typically included in this policy:

Liability Coverage

Liability coverage is a core part of any commercial auto policy. It may help cover third-party bodily injury or property damage costs if your business vehicle is involved in an accident where you or an employee is at fault. Minimum liability limits are required by state law, but many businesses opt for higher limits for added financial coverage.

Physical Damage Coverage

This includes two main types:

• Collision coverage can help cover repair or replacement costs if your business vehicle is damaged in a collision, regardless of fault.
• Comprehensive coverage may apply to noncollision incidents such as theft, vandalism, fire or weather-related damage.

Uninsured/Underinsured Motorist Coverage

If your business vehicle is hit by a driver who doesn’t have enough insurance, this coverage can help pay for damages and injuries.

Additional Options Coverage

Depending on your business, you may also consider options such as:

• Hired and non-owned auto coverage may cover vehicles your business uses but doesn’t own.
• Rental reimbursement may help cover the cost of a rental car if your business vehicle is being repaired after a covered loss.

How Our Team Supports Texas Businesses

At City Auto Insurance, we help you find suitable coverage for your business needs. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.