5 Ways to Find Commercial Auto Insurance

There are 5 ways to find commercial auto insurance if you are in immediate need. Maybe you just expanded your business to include a delivery service, or perhaps you own a contracting company.

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Commercial auto insurance is much different from standard, personal auto insurance and it is important that you take this into consideration.

Before you start shopping around for commercial auto insurance, you might want to check with the Small Business Association or SBA to get a clear understanding of the level of commercial auto insurance you require to remain in compliance with your state.

The information is especially useful for smaller companies or those who operate from their homes, as many may not be 100% certain what level they require, when purchasing a commercial auto insurance policy. Business owners such as caterers and even day care centers can benefit from this information since they often have one or two commercial vehicles only.

Those with larger fleets, however, are not excluded from state laws so it is worth it to verify. If you or one of your employee’s is ever stopped by a police officer, due to an accident or other traffic violation, it is imperative that the correct level of car insurance is attached to the vehicle and matches the information on the registration.

If not, even worse fines or penalties can be imposed. Your vehicle may be towed and impounded until you settle the matter. Should this occur, your business may be at a standstill and a constant loss of revenue can shut you down, permanently.

Confirm the Type of Commercial Car Insurance You Need

In addition to the state requirements regarding levels of car insurance for commercial vehicles, you also need to know how they differ. In other words, the type of vehicle you have plays an important role in purchasing commercial car insurance. These regulations vary from state to state as well.

For instance, if you reside in New Jersey, there are approximately 21 different categories. They range from commercial trucks and tractors, to taxis, limousines, school buses, light and medium trucks and more.

The majority of the vehicles will require the same level of car insurance, but weight also plays a vital role. Heavy-duty trucks, like tractor-trailers and solid-waste vehicles often need extra coverage.

This is an important part of your research, so make sure you do your homework in this area before you proceed. You will most likely get this information from the Motor Vehicle Commission when you start inquiring about registering your vehicle or vehicles, but you can find many answers to your questions by going to the MVC website dedicated to your state.

The Duties You Perform with Your Commercial Vehicle

The duties you perform with your commercial vehicle are another way to find the proper coverage. Since heavy-duty trucks will need more coverage than a delivery van or light-truck, make this part of your research. The Motor Vehicle Commission will also need this information when you apply for the registration, however since you cannot apply until your insurance is valid, you need to do this first.

Take down information like, the make and model of the vehicle. You will also need the mileage. Finally, you need to record the vehicle identification number, or VIN. All of this information is located right on the car, truck, or van. It is best to store this data in one place so when you are ready to inquire about insurance, it will be available.

In addition, it might be a good idea to take pictures of the vehicle, especially if you purchase it used. For some states, this is actually a requirement. Others may not want these types of details, but it can help if you or one of your employees is in an accident within the first six to 12 months of acquiring your policy.

There are many fraudulent car insurance claims affecting commercial vehicles and it can save a lot of time and headaches if they start asking questions. A picture can avoid any delays in processing your claim.

Check with Your Current Auto Insurance Provider

A good place to start looking for commercial auto insurance is with your current, personal car insurance provider.

Many of the larger automobile insurance companies offer all types of insurance, including commercial coverage.

If you already have a good relationship with your current car insurance provider, and are making your payments on time, they may be able to offer you coverage at a comparable rate. Depending on the level of coverage you require and the number of vehicle’s you want to insure, you may even get an excellent quote, much different from someone brand new. It is worth checking out.

Go onto their website and look around to see if they offer commercial insurance, then look for any discounts, like multi-vehicle and safe driver. Just because they market these discounts for personal car insurance, does not mean you will not qualify. If accepted, your savings may pay for the new policy in little less than a year.

Use Your Club Membership as a Resource

If you cannot utilize your personal car insurance company, you may have access to other resources. Many business owners are members of special clubs where they meet regularly to find ways of increasing their financial growth in their specific industries.

For example, the United Motor Club of America works in the field of finance. Their members have access to a number of resources that non-members do not.

If you are a female business owner, with the need for commercial car insurance, the National Association of Women Business Owners (NAWBO) may be your best, untapped resource. In addition to a competitive market, women in business often face many challenges, including financial stress. Searching for a new commercial car insurance company need not be one.

If you have a special club you work with, why not reach out to them to see if they can provide you with information regarding commercial car insurance.

If your club has been around for some time, your chances are very good. You may qualify for certain discounts or even better, be accepted simply because you are a member of a prestigious club.

Even if your club is not affiliated with any car insurance companies, the members are also business people so they probably already have commercial car insurance for their vehicles. Under these circumstances, they should be very knowledgeable in this area and can give you a few good choices to research.

Comparison Shopping is the Best Way to Find a Good Deal

You are going to want to contact at least three commercial car insurance companies to make sure you get the best deal possible. This means after you speak with your club members or colleagues and have compiled a proper list, get to work investigating each one. Review their background and ratings on sites like JD Power to see how their current customers feel about them.

You want to look for high scores in the areas of price, billing, payment options, policy offerings, and contacts. These categories are very important to the way you run your business as well, so it is imperative that they match up. The companies with the highest ratings should be your choice. Go to their website and review the information there to find out all of the options available.

It is better to be comfortable speaking with a representative when discussing the different levels of coverage and the only way to accomplish your task is to know what they offer. Take detailed notes so you can refer to them during the call and once the call is over.

You should not accept any of the rates until you have spent at least two or three days reviewing all of the information. Once you are sure about your selection, call the company back and let them know you are ready to complete the process.

Types of Commercial Auto Insurance

Commercial auto insurance is very different from standard, personal automobile and somewhat the same. This means the type of coverage is similar, but the amount you will need and how most policies are packaged is different.

The types include, bodily and property damage liability, combined single limit liability, medical or no-fault personal injury, uninsured motorist, comprehensive and collision. Most personal car insurance policies do not include so many levels and the limits are lower.

The most unique type of commercial car insurance is the combined single limit or CSL coverage. This is a liability-type of coverage that allows you to separate bodily injury from property damage. However, the amounts remain the same, regardless of the number of people involved.

In other words, if one person is injured, the amount is the same as if multiple parties were injured. The same is true for property damage. This is a major difference between personal car insurance coverage. It is meant to protect business owners from the aftermath of a major collision, since business owners are more susceptible for lawsuits and extensive medical bills.

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