Commercial Car Insurance

Most commercial auto insurance policies fall into the category of Business Auto Policies or BAPs. This is the category outlined below.



BAPs can cover a vastly wider range of types of autos and trucks, and usage types, than a a family car insurance policy or PAP. There are several factors which would make a vehicle uninsurable under a PAP. However in many of theses cases the vehicle can be covered with a business auto form. These circumstances include:



An auto or truck that is owned by a business that is incorporated and not by an individual. It also includes vehicles used for business purposes, such as transporting goods for money. Certain required coverages that are not available on a non commercial policy, such as non owned auto liability. The auto or truck type does not meet the definition of a private passenger auto or truck, such as a dump truck.



There are multiple strong advantages of a business auto form, over a PAP. One of these, is that the prices aren't based on claims or accidents of the drivers, but rather, claims reported on the policy. The actual policy "experience rating" is a five year look back period, at ACTUAL claims filed under the policy. Business auto policies that are "fleet rated", usually defined as five or more vehicles, can receive credits or debits to their rates, depending on the loss history of the account .



Also, the actual rating structure is not as heavily regulated as personal lines auto. For larger policies with a good claims history, one can negotiate the insurance rates for the policy. In some states even the commission amount payable to the agent is negotiable, if all parties are willing.



The standard business auto form allows ANY authorized employee in their capacity as an employee to be covered, regardless of whether or not they are a listed operator. However, liability coverage does NOT carry over to cars or vehicles that are not listed as easily as it does on a a family car insurance policy.



The workers compensation exclusion is found in most business policies, and the business auto form is no exception. Regardless of whether or not workers comp is actually in force, any claim that that could have been covered by workers comp law is not covered under the liability section, for employees of the insured.



The business auto form does not replace or stand in for workers compensation insurance coverage, for the insured. This affects claims under the liability section of the policy – Any claims payable under any state mandated first party benefits, or uninsured and underinsured motorist coverage, can still be paid b the policy.



Many businesses will carry the minimum required level of these and medical payments or personal injury coverages on non-private passenger type vehicles. Coverage for injured employees can be paid for by a Workers compensation policy. This won't impact the premiums of their Business Auto policy.



While the Business Auto Policy form is the simplest among the commercial auto plan forms, it is nonetheless considerably more complex than a a family car insurance policy. Anyone considering the need for any of the standard commercial auto policies, should be sure to discuss which coverage options are best with the business risk manager, or their local licensed professional insurance broker.



You can find commercial automobile insurance quotes as well as personal car insurance quotes on the author, Alston J. Balkcom's websites. You can also get personal auto insurance quotes by calling 1-866-945-2930.