Trucks used for a business need commercial truck insurance. The insurance policies protect trucks of any size, including 18-wheelers. Every vehicle used for delivering, driving to clients’ homes, or transporting inventory needs commercial auto coverage. Learn how commercial auto coverage protects business owners by reading common facts about the policies.  

The Minimum Coverage Requirements

All Californians are required to have auto liability coverage, including businesses. A commercial auto liability policy must cover $15,000 of expenses for one injured party. If there is more than one victim injured in an accident, the policy’s maximum coverage must be at least $30,000. In addition, auto liability policies must cover at least $5,000 for property damage. Contact a local carrier to find out more about insurance for a commercial truck

Protection for Auto Collisions and Property Damage

Companies that use commercial trucks need protection from auto collisions and property damage liabilities. When an accident occurs, the company may be liable if they don’t have enough coverage. With the right amount of coverage, the company is covered for property damage caused by their drivers. If drivers caused damage while operating the commercial vehicle, the coverage applies and could include coverage for landscaping and other damaged items. 

Separate Coverage for Personal and Business Purposes

Commercial auto insurance covers the vehicle during business hours. This policy doesn’t cover personal use of the vehicle. If, for example, the owner uses the vehicle to deliver goods to customers, the vehicle and owner are protected only while they are delivering goods. An accident that happened while the owner was driving to go shopping after work isn’t covered. During non-business hours, the owner needs a separate auto liability policy. 

Coverage for Cargo in the Commercial Vehicle

Commercial vehicle insurance covers cargo in commercial vehicles. A company’s insurance pays to replace damaged cargo if it delivers products to customers. It’s imperative for owners to check their auto insurance policies for cargo coverage. In an auto accident or collision, auto insurance can protect businesses from serious financial losses and replace inventory. Some policies impose restrictions on cargo coverage based on the circumstances of the accident. Business owners review the terms of coverage to find out how much cargo coverage they have. 

Comprehensive and Collision Is Required for Financed Vehicles

Commercial vehicles financed through an auto loan need comprehensive and collision insurance. In most loan contracts, business owners must obtain two insurance policies to protect the asset and replace it if it’s a total loss. Comprehensive insurance covers damage to the car that wasn’t caused by an accident or collision. Those conditions could include falling debris like tree branches, hail, or damage caused by natural disasters. A collision insurance policy covers everything from auto accidents to collisions with motorized vehicles. After an accident, the policy covers repairs needed to restore the vehicle.  

Commercial truck insurance protects owners from auto accident liabilities. A standard auto liability policy pays for medical expenses and property damage. The policies cover commercial vehicles based on the coverage level chosen by the business owner. Business owners usually need comprehensive and collision coverage if their vehicles are financed. 

Business owners who use a commercial vehicle for personal reasons need non-commercial auto liability insurance, too. A commercial truck’s cargo might be covered by some policies if it’s used for customer deliveries. To learn more about state mandates and commercial truck insurance, call an insurance company. 

By Manali