Commercial Auto Insurance

Commercial auto insurance is a crucial part of an overall insurance plan for many California companies. This coverage is required for businesses that use vehicles in everyday business.  

Contact Simple Lane Insurance Agency in El Cajon, California, to start building a commercial auto insurance plan tailored to your organization’s needs.  

How Does Commercial Auto Insurance Work? 

California businesses that use vehicles are required to purchase certain types of commercial auto insurance, including the following: 

• Liability insurance helps cover third-party claims for bodily injury and property damage after an at-fault accident. If your company uses vehicles, you must purchase enough coverage to comply with California’s minimum liability coverage limits. Your agent may recommend buying more than the minimum limits to help provide additional financial protection.

• Comprehensive and collision insurance help protect the covered vehicle by helping to pay for damage after an accident or incident. If your company owns the insured vehicle outright, this coverage is optional. If you lease or finance vehicles, your lienholder requires this coverage.

Your agent may recommend that you customize your company’s commercial auto insurance coverage with the following optional coverages: 

• Uninsured/underinsured motorist coverage may help cover damage to your company vehicle and accident-related injuries for the driver and passengers if the at-fault driver doesn’t have enough liability coverage or is uninsured.

• Medical payments (MedPay) coverage may help cover accident-related medical expenses for you and your passengers, no matter who caused the accident.

• Gap insurance may help cover the difference between your total loan or lease payoff and your insurer’s settlement if your vehicle is a total loss. Some lienholders require this coverage.

Who Is Insured Under a Commercial Auto Policy? 

Commercial auto insurance typically covers the vehicles used for business purposes and those who drive them. If the driver of a company vehicle causes an accident, the affected third party can file a claim on your company’s commercial auto policy.  

Your policy may contain language to help define various covered drivers. Permissible drivers have the company’s permission to drive company vehicles and are covered by your commercial auto policy. Omnibus insureds could be held liable for an accident while driving one of your company vehicles.  

Talk with your agent to understand how coverage for named insureds, permissible drivers and omnibus insureds may differ.  

If you need coverage for your employees while they drive a vehicle your company borrows or rents, hired or non-owned liability coverage can help provide appropriate coverage.  

Does Commercial Auto Insurance Cover Personal Use? 

Your commercial auto insurance policy typically provides coverage when you use the vehicle for personal purposes. Each insurer sets rules for when they may cover an accident or incident, so it’s crucial to work with your agent to understand the limitations of your commercial auto policy.  

How to Get Commercial Auto Insurance In California 

Having appropriate commercial auto insurance can help protect your company’s financial stability when the unexpected happens. Contact Simple Lane Insurance Agency today to get personalized quotes for commercial auto insurance coverage.