What is covered under a commercial auto policy?

Understanding your commercial car insurance policy is critical to protecting your business. We have provided an outline of the fundamentals of commercial auto insurance below. ​

What is commercial car insurance?

​Commercial car insurance provides a selection of coverages for cars, vans, trucks, and other vehicles used in business. There are three fundamental parts of every commercial car insurance policy:

Bodily damage insurance − includes accident and comprehensive coverage
Liability insurance − includes property damage, bodily injury, uninsured/underinsured motorist coverage
Other coverage − includes towing and labor, medical payments, rental vehicle reimbursement, and car, truck, van, or other vehicle loans/lease gap coverage.

What does commercial car insurance cover?

Collision insurance
Collision covers damage to your vehicle if your vehicle hits another vehicle, your vehicle incurs damage accidents not involving another vehicle, or you are hit by another vehicle, regardless of fault. Collision insurance is generally required by a loan or finance company, but maybe optional if your commercial, car, truck, or van is paid in full.  

Comprehensive insurance
Comprehensive car insurance compensates you for damage to your car, truck, or van for issues other than a car accident. Issues such as flood damage, fire damage, earthquake damage, vandalism, theft, or damage from collision with an animal.

Liability insurance 
Liability insurance pays for bodily injury to others involved in the accident, and property damage to the other vehicle when you are at fault for the accident. Bodily injury compensates others for their medical costs, lost wages, and potential legal expenses if a claim is brought against you because of the accident.  

Uninsured motorist coverage
Especially in Louisiana, underinsured motorist coverage compensates you for your injuries and property damage if you are involved in an car wreck with an individual that does not have insurance.  

Underinsured motorist coverage
Underinsured motorist protects you when the at-fault driver’s insurance policy limits are insufficient to cover your losses, both medical expenses, and property damage.

Options & add-ons
In addition to the fundamental components of commercial car insurance, you can modify your business car insurance policy with the following endorsement:

Roadside Assistance
Roadside assistance provides coverage when a problem occurs that is not naturally covered by your commercial car insurance policy. Situations such as - locking your keys in your car, the car will not start, and the occasional flat tires.

Replacement cost coverage for new vehicles.
New vehicle replacement cost coverage compensates you when your new vehicle is deemed a total loss. Also called gap insurance, replacement cost coverage can protect you in the event you owe more on your vehicle than your vehicle’s actual cash value.

Hired vehicle physical damage with loss of use coverage
Hired vehicle coverage provides comprehensive and collision coverage for damage incurred on a leased or rented vehicle, in addition to other pledged commitments to the leasing or rental company.

Car loan or lease coverage
Car loan or lease coverage compensates the lender for the difference between the outstanding balance on your car lease or loan and the actual cash value (ACV) of the car if your accident results in a total loss.

Expanded towing
Expanded towing coverage is an endorsement beyond a standard business car insurance policy. It provides coverage for minor roadside repairs, towing, and jump-starts in the case of a faulty battery. 

Rental reimbursement 
Rental reimbursement compensates you for a rental vehicle after an accident. The length and amount per day are determined before you sign your commercial car insurance policy. Options may be available, be sure to understand your daily amount and the length of time your provider will cover a rental when signing your insurance policy.  

Personal injury protection, medical payments coverage
Personal injury protection coverage pays for the medical expenses of you and your passengers if you or your passenger's health insurance does not cover the costs.

If you still have questions regarding commercial car insurance in Lake Charles La, call to speak with a knowledgeable insurance agent 337-656-2890.

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