Commercial auto insurance is a necessary investment for many companies. It is necessary when a business operates a vehicle as part of its function.
Many vehicle types fit into this category. It includes trucks and vans. It can include luxury vehicles for moving clients from place to place. It could be a small car that helps you get from one job site to the next. Both owned and leased vehicles need this type of protection. It can help safeguard your investment in that car from accidents or other risks.
What Insurance Is a Requirement for a Leased Vehicle?
Like a vehicle under a loan, leased vehicles need ample financial protection. The company you lease it from will likely have insurance stipulations. This usually includes comprehensive coverage. You will need to protect the value of the vehicle with ample coverage. You will also need to have coverage for collisions, uninsured drivers, and underinsured drivers. Furthermore, your state likely requires you to carry liability insurance. So, you will likely have to meet this requirement when buying or leasing a car.
A complete auto insurance package is generally necessary here. Your business insurance agent can help you to make that possible.
Do You Need Commercial Auto Insurance?
It can seem more affordable to choose a personal insurance plan for a vehicle. However, if an accident occurs during business hours, your policy may not offer coverage. Here are a few times when you need to invest in commercial auto insurance for your leased vehicle.
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Employees drive the vehicle for work-related needs.
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Your employee uses his or her personal car for work-related activities. This vehicle may need commercial insurance even if you do not own it.
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You use the vehicle (or your employees do) for both personal and business needs.
Generally, it is not an option to choose a personal policy for a company-leased vehicle. Some state laws require a business-specific policy. You will also need to consider the amount of coverage necessary. A leased vehicle will likely have a high coverage expectation from the company you lease it from. In those ways, commercial insurance might offer better benefits.
Obtain the proper type and amount of commercial auto insurance for your vehicle. Leased or owned, you need to keep this asset safe. This should be a key component of your business insurance policy. You will find the right policy offers the financial protections you need. You do not want to worry about an accident leading to a costly lawsuit against your company. For more information, contact one of our professional insurance agents today.