FRIDAY, MAY 21, 2021
When you use a vehicle for business, you usually need commercial auto insurance. This coverage minimizes risks associated with the vehicle and helps protect your business from claims. The same is true if you own or lease the vehicle.
Why Commercial Coverage Matters
Leasing a vehicle is common and helps keep costs down. But did you know that leased vehicles must maintain full car insurance coverage under the terms of the lease? The same applies to commercially leased vehicles. Any time you have a leased vehicle, the owner needs to know the vehicle has proper coverage.
In the long term, the leasing company sets the coverage you obtain for a commercially leased vehicle. You can choose to add more protection above and beyond what they require. However, a stipulation of most lease agreements is full coverage. This usually includes collision, liability, comprehensive and uninsured motorist coverage. You might also have to carry deductibles at certain limits.
Commercial or Personal Insurance?
Any vehicle used for business operation should have commercial auto coverage, including any rented or leased vehicle. Commercial auto coverage:
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Provides better liability coverage, therefore better protecting business assets. This extends the amount and type of protection you have to all company-owned vehicles listed.
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Covers other types of vehicles and features. This includes trailers and other add-ons (if you mention them in the policy).
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Covers more than one driver. The policy covers the vehicle no matter who is behind the wheel. However, you might need to list the driver on the policy. They should be able to drive any vehicle listed on the policy, too.
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May include non-owned vehicle coverage. This helps minimize risks to your company when employees operate vehicles the company does not own, like their personal cars.
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Is very flexible to meet the demands of operation applying to your company.
When it comes to buying insurance for your vehicle, speak with an insurance agent who can offer more insight into the coverage that’s right for you.
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