What is commercial auto insurance? Commercial auto insurance is similar to personal insurance. However, the former provides coverage for your business that is not found in a standard personal insurance plan.
For example, commercial insurance is important to have if you face an accident-related lawsuit against your company. It protects you in ways a personal insurance plan can’t.
For an in-depth look at commercial auto insurance in Tennessee rather than Nevada, check out our article on the subject.
What is commercial auto insurance continued
As you probably know:
Insurance is an agreement between you and an insurance company that requires you to pay a policy premium in exchange for coverage from losses.
These losses can include bodily injury liability, medical expenses, property damage, and theft.
Whether you are looking at a commercial or personal plan, it’s good to know what losses are covered in your policy. Again, commercial policies differ in that they are specifically for businesses.
When asking, “What is commercial auto insurance?” keep in mind that business auto insurance counts.
And yes, you may be required to get commercial auto insurance. All states except New Hampshire mandate coverage. But even if you live in New Hampshire, it would be wise to have your business covered with commercial auto insurance.
Let’s quickly look at the difference between commercial and private insurance.
What is the difference between commercial and private car insurance?
Commercial insurance can:
- Cover you and your employees driving vehicles for your business.
- Cover large trucks and vehicles used in construction, along with other work vehicles.
- Cover a fleet of cars. Multiple vehicles can be covered in one policy for the entire business. This is helpful for a business owner to have one policy for all vehicles, rather than multiple individual policies.
- Cover standard vehicles if used for work purposes.
- Act as a tax right off for your business.
- Cost you more than personal auto insurance but can also handle greater liability and more difficult issues, such as lawsuits.
Meanwhile, personal insurance can:
- Cover your personal vehicle and financially protect you and your family
- Save you money compared to commercial auto insurance.
- Allow up to 4 cars to be insured under one policy
Do I Need Commercial Auto Insurance Coverage?
If you have a small business, it can be difficult to know whether or not you need commercial auto insurance.
If your company owns the vehicles you are using for work-related purposes, then yes, you need commercial coverage.
If you are using personal vehicles that your business doesn’t own for work-related purposes, then you need HNOA insurance instead.
If you work with Uber and other transportation services, you may need commercial auto insurance for your vehicle. Most personal policies do not make exceptions for ride-sharing.
If you have questions, call us today. We’ll go over what policy will work best for your situation.
What are the state requirements for commercial automobile insurance in Nevada?
In this article, our goal has been to answer the question, “What is commercial auto insurance?”
We would like to add, however, that you will need to research what your state’s requirements for auto insurance are before getting a plan.
In Nevada, the state does have a minimum requirement for business coverage, which is referred to as “25/50/20.”
Here is a link to the Department of Business and Industry, Nevada Division of Insurance on the subject: Nevada Division of Insurance (nv.gov)
Please note that the kind of business you run will greatly impact the cost of your insurance policy.
If you are operating vehicles that are more risky like 18-wheelers, then you can expect to pay a lot more. Naturally, the size of the vehicles needing to be insured will factor into the premium.
Where you are located and how far you have to travel will also be considered when calculating your premium.
Further Reading: What are some of the most common types of commercial insurance?
Commercial insurance coverage extends beyond just the auto insurance portion.
However, commercial auto insurance is one of the most common types of commercial insurance.
Other common types of coverage include workers’ compensation, property insurance, and general liability insurance.
- Workers compensation. Companies offer workers’ compensation to employees that have been injured or fallen ill because of their job. Workers’ comp covers loss of wages, medical expenses, and even death expenses like funeral costs.
- Property insurance. This type of insurance covers a wide range of damages to the business, from losses sustained by robbery to damages done by mother nature. You might need property insurance specific to the kind of business you run, and your policy premium might rise as additional forms of coverage are added.
- General liability. General liability insurance provides protection in case you are sued by a third party for being injured while at your business. This type of coverage is important to have if your business interacts with a lot of customers.