Collision Coverage Within Commercial Auto Insurance

Collision Coverage Within Commercial Auto Insurance

a car parked on the side of a road

When you buy a company vehicle, then you must insure it appropriately using commercial auto insurance. These benefits will provide the coverage terms necessary to protect the business’s investment in a vehicle. This will include the option of being able to repair the vehicle if it gets damaged in an accident. However, you must ensure your policy contains the appropriate coverage—collision insurance—in order to receive this benefit.

Let’s take a closer look at the collision coverage offered by commercial auto insurance, and how you can adapt it to your advantage at times when you need it.

What Is Collision Coverage?

One of the most obvious causes of vehicle damage is a wreck. You might hit another vehicle, or back into a building when trying to reverse. The ramifications will be the same: damage to your vehicle and damage to someone else’s property.

If an accident is your fault, then liability insurance will help you pay for the harm you caused to others. However, for your own damage costs, you will need collision insurance. With this coverage, you will be able to receive assistance paying for your own vehicle repairs, so that you won’t suffer a huge financial setback trying to pick up the pieces of this accident.

Businesses that operate commercial vehicles need this coverage as critically as any personal driver. After all, if one of your company vehicles gets damaged or totaled in a wreck, then you should not have to face a huge repair bill that your company cannot afford. Adding collision coverage into your benefits will ensure that your vehicle receives the repairs it needs, all the same.

How does my collision coverage pay me?

Depending on the terms of your commercial auto policy, the amount of assistance that you will receive for a collision claim will vary.

You will have a deductible on your coverage, which represents your cost responsibility for a claim. For example, if you have a $500 collision deductible, and your vehicle sustains $3,000 in damage, then your insurer will pay $2,500, while you must pay the remaining $500.

If the cost of your damage is less than the value of your deductible, then your policy will not pay at all. Your deductible represents that you agreed to pay up to this value for your losses.
If you total your car, then your insurer will usually pay you based on the cash value of your car at the time of the accident. This is the car’s used value. If you want a higher amount of compensation, then ask if you can upgrade to a policy with replacement cost value coverage.
Collision coverage will not insure custom features that you added after you bought the car, unless you add a special endorsement to your plan.

With the help of your agent, you can ensure you receive the collision coverage that is optimized for your commercial vehicles. Let them assist you in choosing the benefits that are best for you.

Collision Coverage Within Commercial Auto Insurance

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