What Types of Commercial Auto Policies Are Available?
Since many different businesses need commercial auto coverage, insurance companies offer a variety of different types of policies. Some of the more common policy options are traditional commercial auto policies, fleet insurance policies, and hired and non-owned policies.
Traditional commercial auto policies are used in a wide variety of situations where companies actually own the vehicles they use. These policies offer many coverage options for commercial vehicles, and they can often be used to insure anywhere from a single vehicle to a whole group of cars.
Fleet insurance policies are specifically designed for companies that have many vehicles to insure. These policies may be adapted to cover cars, vans, trucks or other vehicles, and they come with many coverage options. Most fleet insurance policies also have substantial aggregate limits since they’re protecting many vehicles.
Hired and non-owned policies are used by businesses that operate vehicles they don’t own. Pizzerias that have employees use personal cars when making deliveries, for example, might need a hired and non-owned policy. Normally, these policies offer only liability protection and limit their coverage to when a vehicle’s being driven for work.
An insurance agent who specializes in commercial auto, fleet insurance, and hired and non-owned policies can help businesses select the type of policy that’s right for them. After selecting the most appropriate type, the agent can also assist with choosing coverages, deductibles, limits and other options.