Commercial Auto Insurance
Commercial Auto Insurance Information
Virginia businesses must purchase minimum commercial auto insurance coverage to comply with state laws, or they will have to pay a fee. Commercial auto insurance is typically tailored to help cover the risks and exposures the insured company faces.
Contact HIS Insurance Services today to evaluate your options for commercial auto insurance coverage.
How Much Commercial Auto Insurance Do I Need?
Every commercial vehicle owned and operated by a Virginia business must carry commercial auto insurance liability coverage. If your company chooses to forgo this coverage, the Virginia Department of Motor Vehicles requires payment of the uninsured motor vehicle fee and regular registration fees.
- Commercial auto liability coverage helps pay for the company’s legal liability for third-party injuries and property damage. Without this coverage, the company may be required to reimburse the other party out of pocket.
If your company leases or finances vehicles, the lienholder requires full coverage insurance, which may include the following coverages:
- Comprehensive coverage helps pay for noncollision-related damage to the covered vehicle, typically due to vandalism, theft, storms or fire.
- Collision coverage helps pay for damage to the covered vehicle if it collides with an object or another vehicle.
- Gap coverage helps pay the difference between the insurer’s settlement and the total amount owed to the lienholder if a covered accident renders the vehicle a total loss.
How Does Commercial Auto Insurance Work?
Commercial auto insurance is designed to help provide financial protection for the insured company against common auto-related risks and exposures.
A vehicle owned by an individual and insured with a personal auto policy may not have appropriate coverage if there’s an accident while the driver is using the vehicle for business purposes. If your company uses personal vehicles for business purposes, your agent may recommend that you purchase hired or non-owned auto insurance (HNOA) to help provide appropriate coverage.
What Does Commercial Auto Insurance Cover?
Your agent may build your commercial auto insurance plan starting with liability coverage. Depending on your situation, they may recommend purchasing more than the minimum amount required by Virginia.
You can choose comprehensive and collision coverage to protect your company’s vehicles. Gap coverage may be optional, depending on your lienholder’s requirements.
Your agent may recommend other policies and endorsements to help tailor your company’s commercial auto policy, including:
- Medical payments helps pay for medical bills if a company vehicle driver or passenger is injured in an accident.
- Uninsured/underinsured motorist insurance helps cover damage to your company vehicle if you are in an accident with a driver who doesn’t have appropriate insurance coverage.
- Umbrella insurance helps cover property damage and bodily injuries when a liability claim exceeds the limits of your company’s other liability policies.
- Hired and non-owned auto insurance (HNOA) helps provide coverage for leased, personal and rented vehicles used by your company.
Your agent may also recommend additional commercial auto coverage, including the following:
- Replacement cost vehicle coverage
How Much Is Commercial Auto Insurance?
The insurer sets commercial auto insurance policy premiums. Proprietary algorithms may use information about your company, its property and your insurance coverage to help set rates, such as the following:
- Your company’s claims history
- The value and type of vehicles you insure
- Your policy limits and the commercial auto policies you purchase
How to Get Commercial Auto Insurance
Contact HIS Insurance & Services in Winchester, Virginia, for a personalized commercial auto insurance quote.