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Quick Guide: The INs and OUTs of Commercial Auto Insurance

17 May
Quick Guide: The INs and OUTs of Commercial Auto Insurance

Quick Guide: The INs and OUTs of Commercial Auto Insurance

Commercial vehicles have special insurance needs because they’re naturally subjected to heavy use. They often carry valuable cargo, and their physical weight increases the likelihood of property damage or injury during accidents. The U.S. Department of Transportation estimates that roughly 6.6 million commercial motor vehicles circulate throughout the country’s highways.  These vehicles travel hundreds of billions of miles every year, facilitating infinite services to the economy.  The options for purchasing commercial insurance might seem complex, but it’s easy to identify the right plan once you analyze your risks.  Here are the main categories to consider, if you’re looking for commercial auto insurance:


1.    Liability Insurance:

This refers to insurance coverage that provides compensation for damages or injuries that occur to other people during an accident. Liability insurance is intended to offer financial protection when a driver is at fault for an accident. Liability insurance for commercial drivers can be purchased both for on-duty or off-duty activities separately, even if a driver is a lessee. Special liability policies also apply depending on what type of vehicle is being insured.


2.    Physical Damage Coverage:

This refers to insurance coverage that pays for mechanical repairs in the event of a collision, or incidents which aren’t related to traffic. Physical damage coverage specifically protects vehicles, as opposed to drivers and pedestrians. As would be expected, the different types of coverage you can get for physical damage are as complex as the multiple scenarios that actually cause damage to a vehicle. For instance, drivers have the option to insure against collisions, rolls, fire, theft, vandalism and various other such occurrences.


3.    Cargo Insurance:

This refers to insurance coverage which provides financial compensation for merchandise that is hauled or transported as freight. Cargo insurance protects against damage caused by collisions, fire, spillage and other such interruptions of shipment. This type of insurance is especially important for drivers who transport sensitive or hazardous materials. The right policy can pay for removal of debris and containment of pollutants. Cargo insurance can also cover legal expenses and settlement costs in the event of lost or damaged cargo.


4.    Medical Payments Insurance:

This refers to insurance coverage that is designed to financially compensate for medical expenses incurred by drivers, and passengers, who are directly involved in an accident.  Medical payments insurance offers reimbursements regardless of who is at fault because it prioritizes injury over property damage.


5.    Uninsured Motorist Insurance:

This refers to insurance that provides financial compensation for accidents involving other drivers who either aren’t insured, or don’t have sufficient liability insurance to adequately pay for damages. Uninsured drivers create a significant loophole of exposure because if they’re at fault during a collision, they remain incapable of paying anything towards damages. Uninsured motorist coverage helps resolve this problem.



Commercial vehicles need unique protection when it comes to insurance.  This is because relying on a vehicle for revenue increases the amount of risks involved in operating it.  It’s always a good idea to make sure you have comprehensive commercial insurance to protect yourself, and your business. For more information, visit our website or give us a call at 1-800-639-7654 to find out how Adriana’s Insurance Services can help you stay safe. We got you covered!