The state laws also typically have different coverage requirements that must be met based on vehicle type and use. For example, a vehicle that is used to carry passengers, such as a taxi, a limo, or a bus, may have significantly different coverage requirements than a semi-truck used to haul products to a warehouse or storage facility. One of the main types of coverage requirements in place by law in most states relates to liability coverage. The liability coverage will pay other parties for their damages related to an accident that is caused by the business’s staff members in that vehicle. This may include their property damage expenses, medical expenses, and more. In most states, others can sue the company for damages, and liability insurance will minimize out-of-pocket costs related to this type of event.

Additional coverage is available to reimburse the business for vehicle repairs, medical bills if the driver or other staff members in the vehicle or injured, and business property in the vehicle. If trailers will be used regularly with the vehicle, separate coverage may need to be purchased for that. Coverage limits and the deductible amount can be adjusted by the insured to make the premium more affordable.

Commercial auto insurance may be a requirement in most cases, but it also can be highly advantageous. It can dramatically reduce out-of-pocket expenses if the vehicle is involved in an accident. Ensure that you have the proper coverage to fully protect you from losses, and make adjustments to your policy as needed so that it is most effective for you.