Commercial Car Insurance Quotes

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

Business Auto Policies are able to cover a vastly wider range of vehicle types, and usage types, than a non commercial policy or PAP. There are several factors which would make a vehicle ineligible for coverage under a a family car insurance policy. However in many of theses cases the vehicle can be covered with the business auto form, including but not limited to:

An auto or truck that is owned by an incorporated business and not by an individual. It also includes autos or trucks used for business purposes, such as transporting people for money. Certain required coverages that are not available on a personal auto 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.

You'll find multiple important advantages of a business auto form, over a PAP. One of these, is that the prices aren't based on DRIVER history, but rather, policy claims experience. The actual policy “experience rating” is a five year look back period, at ACTUAL claims filed under the policy. Policies that are “fleet rated” can receive credits or debits to their rates.

In addition, the actual rating structure is not as heavily regulated as family auto policies are. For bigger policies with a few accidents, there's much more latitude in negotiating the premiums for the policy, and 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. The flip side of this is that the liability coverage does NOT carry over to unlisted vehicles as easily as it does on a PAP.

The workers comp exclusion is found in most business policies, and the business auto form is no exception. Whether or not workers compensation is actually in force, any claim that that could have been covered by workers compensation 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 is true for liability. However Any claims payable under any state mandated first party benefits, or uninsured and underinsured motorist coverage, can still be paid b the policy.

A big uninsured motorist claim can greatly increase the price of a policy. For this reason 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, without the ensuing additional detriment to the experience rating on the future years of Business Auto coverage.

Although the BAP form is the least complex of the commercial auto coverage 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 agent.