Things To Know Before Buying Commercial Auto Insurance

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Last updated on: August 29, 2022

You need insurance if your business involves using commercial vehicles like trucks. With many insurance companies in the market, you will need a reliable guide to get the best policies. Alchemy Insurance Agency is the best agency you can find.

Before you get started, you need to know the basics of commercial auto insurance. Below, we explain things you need to know and answer common questions most people ask when they want to buy commercial auto insurance.

How Does Commercial Auto Insurance Work?

Commercial auto insurance protects vehicles like trucks, trailers, vans, and cars used for business. It covers all insurances that are not protected by personal auto insurance policies.

Cases where you need to buy commercial truck insurance policies:

  • If you use your vehicle to transport people and goods.
  • If you haul heavy cargo, tools, or equipment using your vehicle.
  • Use your vehicle to tow other vehicles used for your business.
  • Have employees that use the vehicle for your business.
  • Need higher liability limits due to the nature of your business.
  • If the vehicle is only used for business purposes.

Pieces of equipment not attached to the insured vehicle are not covered by commercial auto insurance. This is because they are not regarded as part of the vehicle.

A commercial auto insurance policy can provide the following liabilities:

  • Property damage liability pays for collision damages if you are involved in a collision with an individual’s property and you’re legally responsible.
  • Bodily injury liability covers injuries caused to another individual.
  • Collision insurance takes care of damages to your vehicle by another vehicle or object.
  • Comprehensive insurance covers damages like theft, vandalism, fire, and flood.
  • Personal Injury Protection (PIP) pays the medical bills of individuals injured due to an accident with your vehicle.
  • Uninsured motorist (UM) insurance covers damages caused to your vehicle by an uninsured motorist.

Benefits of Commercial Auto Insurance Services

  • It helps you manage your business risks by covering liabilities due to the use of commercial vehicles.
  • Meets the insurance requirements by state law for your business.
  • Reduces cost impact caused by accidents, breakdowns, vandalism, or theft.
  • Insures your employees during the work with your vehicles.
  • Protects your business against the monetary consequences of lawsuits due to at-fault accidents.
  • Protect your business by protecting it against lawsuits resulting from offending accidents.

Questions To Ask Before You Buy Commercial Auto Insurance

       1. What Coverage Type Do I Need?

Determining the possible risks of owning a commercial vehicle will tell you the policy and coverage type you need. Make sure to know the coverages offered by the policy you aim to buy.

You can buy policies that offer higher coverage if you need additional coverage. It is advisable to seek guidance from Alchemy Insurance Agency to know the policies that suit your needs.

      2. How Do I File and Submit a Claim?

If you wish to file a claim, you will need to provide information, detailed narration, and the amount to claim. Once all the necessary requirements are in place, you can contact the claims department of your insurance company.

       3. How to Lower Your Commercial Vehicle Premium?

You can lower your premium and save money in many ways. Hiring efficient drivers, using better routes, and getting high-quality can reduce premium costs. Also, take safety measures like upgrading vehicle security and installing security gadgets.

       4. How Much Do I Pay As Deductible?

The money you pay yourself for your vehicles is called a deductible. If your vehicle breaks down or is involved in an accident, you will likely pay a deductible for repairs. This depends on the type of policy you buy. Increasing your deductible can be a good idea to reduce premium costs. We recommend saving up some funds to use as deductibles in the future.

        5. How Much Does Commercial Insurance Cost?

The cost of commercial insurance depends on the policy type and the company. Make sure to assess the costs of insurance policies before buying. It is crucial to set a budget to guide your spending. Only go for insurance plans that fit your budget and have reasonable coverage.

        6. What Are The Best Ways To Pay Premiums?

You can save more money if you pay premiums annually than monthly. Many insurance companies offer a reasonable discount on premiums. If annual payment affects your budget, paying bi-annually or quarterly may be suitable.


We aim to help guide your insurance journey here at Alchemy Insurance Agency.

Before buying commercial auto insurance, we will help you find the best insurance company to get started with.

We also offer the best guidance on determining your coverage, deductible, and payment method. Save more money with our expert tips and get the best from insurance while working with us.

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