Whether you are driving your own commercial car or given a third-party to drive your commercial vehicle, insurance is a must-have for you since you are the one who is responsible for the vehicle. Car insurance helps to protect us from unexpected events, which may happen while on the road—for example, fire, accident, theft, vandalism, etc. Car insurance is nothing but a piece of contract paper between the insurance company and the owner of the car. In case of any mishap, the insurance company would provide financial assistance to the car owner. The car owner pays the premium to the insurance company. In return, the insurance company takes the liability and provides costs for repair and injury treatment.
Why do you need commercial car insurance?
Whether you are heading a small business or a large one, definitely, you will need commercial vehicles such as cars, vans, and trucks; all are covered under a blanket of commercial vehicles. All these vehicles should have insurance as mandated by the government if used for catering commercial logistic and transport purposes. It has become a legal requirement. Insurance provides you financial aid when your vehicle gets damaged. The insurance also provides coverage to the passengers, drivers, and their damaged properties. Insurance also provides support if the fire destroys your car, or it is stolen, etc. For both small and large businesses, commercial auto insurance is required, and the type of insurance for each type of vehicle is also different.
Car insurance coverage
The various possible coverage by car insurance are mentioned below,
- Property damage liability-If the third party’s property damage, like their car. You will get the coverage of this.
- Body injure liability-People who are injured during the accident can claim
- Medical payment- Through the policy, the insurer can claim money for covering the medical cost from an insurance agency; the same can also be claimed for those in the policy owner’s car.
- The insurance company’s comprehensive physical damage will pay you if your car gets damaged by fire, flood, and vandalism or gets stolen.
- Collision coverage- If your car hits another car or being hit by another car, in both cases, the insurance company pays for damages.
What do you mean by the non-trucking liability insurance?
When commercial trucks are running for commercial purposes other than a regular business, the driver needs to take separate Nontrucking liability insurance to cover such business trips.
Many truck drivers you would find who drive rigs when officially they are not working. Reasons can be to earn extra money or anything else. The standard truck liability insurance does not provide any coverage during this period, so at this moment, non-liability insurance is the only option for drivers. The insurance covers injury to the individual or third party and vehicle damage cost as well. Non-trucking liability is also known as NTL. This insurance gives you coverage for that time when one uses the commercial auto vehicle for personal purposes.
Cost of non-trucking liability insurance
There are many factors to consider while taking the insurance; the cost is another point to check. This insurance is not that expensive like other insurance. Your premium will be decided on your past driving skill. One more thing that can affect your insurance rate that is the size of the deductible. You need to pay a high premium if the deductible is low. You can easily ask for a discount from the insurance agent. Compare the rate through various companies.