What You Need to Know About Commercial Car Insurance

If you are a business owner using vehicles in your day-to-day operations, commercial car insurance is something that you need to be informed on. Canadian laws mandate that every vehicle on the road must carry insurance, and a commercial vehicle is no exception.

What is Considered a Commercial Vehicle?

A commercial vehicle is best described as a vehicle used to transport materials or goods used in your business. If you are using four or more vehicles for this purpose, the term “fleet insurance” may be used instead of commercial insurance, but it is pretty much the same type of coverage. No matter how many vehicles are used in your business, it is important that commercial insurance be obtained.

What is Included in Commercial Insurance?

Commercial insurance is basically the same coverage that would be carried on any other car or truck that you use for personal use each day. Accident benefits insurance coverage is required in most Canadian provinces. This coverage offers protection in the event of an accident by providing compensation for medical bills or funeral expenses, as well as loss of income due to death or disability. The amount of coverage that is offered depends on the policy that you have in place.

Uninsured motorist coverage is also included in your insurance policy. Uninsured motorist coverage may also be called under-insured motorist coverage. With this policy, the insurance coverage will provide monetary assistance if you are involved in an accident with a driver who does not carry enough insurance to fully cover the costs associated with the accident, or a driver who has no coverage at all. This is a very valuable policy that is required by all Canadian drivers.

Third-party liability coverage provides protection if the company vehicle that is being driven is responsible for damages in an accident. This coverage will cover medical expenses as well as property damages. Additional policies, such as collision and comprehensive are also available, but not mandatory to be carried.

How Much Will I Pay for Commercial Insurance Coverage?

Rates for commercial car insurance will vary with each individual or company. Many factors play a role in the premium amount, including prior insurance coverage, driving record, credit score, and the insurance company that you have selected. It is always in your best interest to get quotes from a minimum of three different auto insurance companies before selecting the best one for your needs. It is easy to compare rates online, and takes only a few short minutes to do. Many sites provide multiple quotes by filling out one form. Our website does not offer insurance policies and it does not have any quote capabilities; but you should be able to find insurance quotes by using your local phone book.┬áRates can also be compared by calling individual companies directly – this may take more time but it is still an effective way to get quotes.

While there is much more information that is needed to make an informed decision concerning commercial car insurance, these basic tips will give you a head start on choosing the right auto insurance for your business needs.

Other Pages About Commercial Insurance Products

Commercial Truck Insurance
Commercial Van Insurance
Business Insurance
Fleet Insurance