Commercial auto insurance in Tennessee is necessary to protect your business from issues that can occur while you or your employees operate a commercial vehicle.
Since commercial vehicles are routinely exposed to risk, it’s important to have a robust policy in place that can provide you with the coverage you need when it counts.
Contact An Experienced Professional Today About Your Business
If you’re here looking for an affordable and comprehensive auto insurance policy, call us anytime at our Las Vegas line: (702) 850-7711 or our Memphis line: (901) 306-8100.
We’ve been helping people find affordable and comprehensive coverage for years in both Tennessee and Nevada.
Who Needs Tennessee Commercial Auto Insurance?
Any business in Tennessee that operates vehicles for work-related purposes should get commercial auto insurance.
The truth is that commercial vehicles are usually more exposed to risk than personal vehicles, which makes getting protected necessary.
For example, an 18-wheeler that drives cross country most days out of the year is more likely to encounter an issue than a personal vehicle that is used to commute to a nearby job.
Since commercial vehicles often come with higher risks, they need special coverage that only a commercial auto insurance policy can provide.
What Does Commercial Auto Insurance Cover?
Commercial auto insurance in Tennessee covers any vehicle that your business owns and uses for commercial purposes.
In this respect, commercial auto insurance is fairly straightforward. Some people have asked us, however, what happens if you use a personal vehicle for work.
This is a good question, and there is a definite line of distinction between commercial auto insurance and what is known as hired and non-owned auto insurance (HNOA).
Side Note About HNOA Insurance
(HNOA) provides coverage for vehicles your business does not own but uses for work-related purposes. For instance, if you pick up office supplies with your personal vehicle, you may be covered by HNOA insurance.
A great example of HNOA coverage is food delivery driver insurance. Doordash, for instance, most likely has some form of HNOA insurance in place for their drivers.
In the case of Doordash, however, they also require that drivers have their own insurance for their vehicle.
This is because there are limits to what HNOA insurance covers. HNOA insurance usually protects businesses from lawsuits and claims but not the cost of vehicle repairs.
What Does Commercial Auto Insurance Cover Continued
Now that we’ve gone over HNOA insurance, here are some specifics about commercial auto insurance coverage specifically.
Collision Coverage: As the name suggests, collision coverage protects you from the cost incurred by a collision. Your commercial auto insurance policy typically includes collision coverage to repair your vehicle if an accident is caused by you or one of your employees.
Comprehensive Coverage: This type of coverage handles the cost of replacing or repairing company vehicles if they are broken into or damaged by natural events. Essentially any form of damage not caused by a collision falls under the umbrella of comprehensive coverage, although there are limits to what can be covered.
Bodily Injury Coverage: This is probably the most important coverage that commercial auto insurance can provide since it protects your business financially in the event of a vehicle-related injury. If your commercial auto insurance plan covers medical payments, then it will include your medical expenses, the medical expenses incurred by your employees, and potentially the expenses of an injured third party.
We can’t overstate the importance of getting bodily injury coverage. While vehicle repairs can be costly, medical bills are often at another level and can cost a fortune. A good bodily injury policy will cover medical costs, court costs, and funeral costs.
Property Damage Coverage: Your commercial auto insurance policy also provides coverage for property that is damaged by you or an employee. How much coverage you receive varies, so it’s a good idea to speak with a skilled insurance agent who can help you find the best plan for your needs.
Bobtail Coverage: This type of coverage is used when you have a semi-truck or tractor that is NOT hauling items. Bobtail coverage is common for truckers who need coverage after they’ve dropped off their shipments.
Uninsured Motorists Coverage: If you get in an accident with someone who is uninsured or underinsured, this type of coverage helps protect your business by covering you, your vehicle, and your employee.
Additional Forms of Coverage: Beyond the forms of coverage mentioned, there are additional coverage types that you might want to get, such as rental replacement coverage or towing coverage, the latter of which protects your business in the event your vehicle breaks down, and you need to pay to get it towed.
Please note that additional coverage may not be available for every business. To find out if your business can get extra coverage, call us today.
What Does Commercial Auto Insurance Not Cover in Tennessee?
While commercial auto insurance in Tennessee has a wide scope of coverage, there are certain things that it does NOT cover, such as the use of personal vehicles.
If you use a personal vehicle for work, you’ll need HNOA insurance, and we would add, you need to get personal auto insurance too.
What Else Does Commercial Auto Insurance Not Cover?
Commercial auto insurance does not cover accidents or injuries that result from fraud.
While we’re sure this is obvious, it’s still worth mentioning….Anyone who willfully gets in an accident to collect insurance won’t benefit from commercial auto insurance. The same holds true for anyone who is wilfully negligent or reckless and ends up getting in an accident.
Speeding is a form of reckless behavior that can negate your coverage, so be careful with this and certainly be mindful of how you and your employees drive!
Rental Coverage With Commercial Auto Insurance
Commercial auto insurance may not cover rental vehicles, although your coverage can be extended to rentals in many instances. We encourage you to ask your insurance agent about this if you need coverage in this area.
What About Commercial Auto Insurance For Drivers?
Your commercial auto insurance might not cover certain drivers. Again, this depends on your specific policy. It may be that your policy only covers certain people on a predetermined list.
Commercial Auto Insurance vs. Workers’ Comp
Commercial auto insurance is NOT the same thing as workers’ compensation insurance. Workers’ compensation is responsible for paying for illnesses or injuries that are sustained as a result of your job. It doesn’t cover commercial vehicles.
Sometimes people confuse these two forms of coverage, which is understandable. Just remember that they are quite different.
How Do Insurers Decide If It’s A Work Or Personal Vehicle?
It can be hard to tell where the line between a personal vehicle and one used for work is. But one thing is clear, getting HNOA insurance is incredibly helpful and necessary if you use your personal vehicle for your business.
For details about what activities constitute the need for HNOA insurance and what requires a modified form of personal auto insurance, contact us today.
What Vehicles Does Commercial Auto Insurance In Tennessee Cover?
Commercial auto insurance in Tennessee covers the following:
- Company cars
- Trucks (pickup trucks, food trucks, dump trucks, etc.)
- Taxis (and other transport-related vehicles like limos)
What Is The Cost of Commercial Auto Insurance In Tennessee?
You can expect your commercial auto insurance in Tennessee to cost around $1,000 per year per vehicle.
This of course is just an average. If your business requires a fleet, has very large trucks, or transports dangerous materials, the price will be significantly higher.
Factors That Determine The Cost of Commercial Auto Insurance in Tennessee
Factors that influence your commercial auto insurance cost include (1) what type of vehicles are being used, (2) the type of business you have and the materials you are transporting, (3) your jurisdiction, (4) how far you need to travel, and (5) your business claims history.
There are other factors that can influence your cost as well, although these are the main ones.
Why Is Commercial Auto Insurance Necessary?
Vehicle repair costs, medical expenses, and lawyer fees can be steep, which is why getting protected is absolutely essential to the long-term success of your company.
Commercial auto insurance is important and necessary since it protects you from catastrophic expenses that could bankrupt your business.
How Long Does It Take To Get Commercial Auto Insurance?
We work quickly, so you don’t have to wait more than 48 hours to get insurance.
To begin the process, we do a phone call with you and ask you some questions about your business, such as the type of vehicles you use, how many vehicles you have, the materials you transport, and so on.
After our free consultation, we’ll provide you with a customized quote and get you set up with insurance.
How Do I Make A Commercial Auto Insurance Claim?
To make a claim, you’ll need to contact us and our carrier, CNA Financial. From there, you’ll fill out some information about your business and the details of the claim. You’ll need to include your policy number.
Contact Us About Your Car or Vehicle
To learn more about commercial auto insurance in Tennessee or to get started with a plan, call us today.
Nevada Las Vegas Line (702) 850-7711
Memphis TN Line: (901) 306-8100
Why Use Us For Your Commercial Auto Policy?
You might be asking why use us? There are several reasons why clients have chosen to work with us over the years, but the most important is our customer-service approach.
We’re here to put you first and make sure you find the plan that is best suited for your needs rather than just sell you a policy.