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Commercial Auto Insurance

If vehicles are used in your business operations, then you need insurance coverage for them. Any vehicle used for business purposes needs insurance. This includes:

  • Work vans
  • Delivery trucks
  • Food trucks
  • Service and utility vans/trucks
  • Box trucks
  • Dump truck
  • Forklifts
  • Construction vehicles
  • Company cars
  • Personal cars used for business

What is Covered under Commercial Auto Insurance

Commercial auto insurance covers:

  • Collision insurance: This pays for damage to your vehicle, regardless of who caused the accident.
  • Liability insurance: This will pay for the medical bills of people injured and the repair of property damaged in an accident caused by the insured vehicle.
  • Uninsured/Underinsured motorist insurance: If an uninsured or underinsured driver causes injury or damage to property, the cost of medical expenses and damage repairs above what the at-fault driver's insurance pays will be covered.
  • Comprehensive insurance: This will cover damage to a vehicle due to reasons other than a vehicular accident. This includes damage or loss due to earthquakes, fire, floods, vandalism, theft, and other circumstances as defined by the policy.
  • The materials and goods in a business vehicle may also be covered, depending on the policy options. This will include tools, supplies, etc., that may be stolen from a vehicle covered by the commercial auto insurance policy.

Beyond these coverages, a commercial auto insurance policy may usually be customized to cover other expenses related to vehicle damage, including:

  • Roadside assistance.
  • Damage to leased or rented vehicles.
  • Coverage of the balance amount due if a leased vehicle is a total loss after an accident. An unpaid loan amount can also be covered.
  • Reimbursement of rental expenses incurred while a vehicle is being repaired.
  • Payment of medical expenses for the vehicle occupants if their health insurance does not cover the costs.

Tax Benefits of Commercial Auto Insurance

Commercial auto insurance premiums are typically tax-deductible. The amount paid for insurance can be written off as a business expense, reducing the overall tax liability.

California Commercial Auto Insurance Requirements

California law requires that all commercial auto policies have a minimum liability of:

  • $15000 per person.
  • $30000 per accident for bodily injury and $5000 for property damage.
  • Vehicles with a USDOT or CA state serial number will have separate covered requirements. For example, the FMCSA mandates that large vehicles, including semi-trucks, that travel interstate have a minimum coverage of $750,000.

Balancing minimum state requirements with the actual coverage needs of your business and the proper coverage limits requires specialized knowledge of the vehicles in question, types of accident and other causes of damage, the types of claims raised against the owner, the amounts awarded, and much more. We have been dealing with commercial auto insurance for over 65 years and know-how to provide our clients with the maximum possible protection and coverage at the correct cost. We offer auto insurance from the leading insurance companies in the country, and we will provide the best policy options for your business. Contact us and allow us to give your business the protection it needs.

Cities Served: Menlo Park, Redwood City, Atherton, San Carlos, San Bruno, San Mateo, Burlingame, Foster City, San Francisco, Brisbane, Belmont, Los Altos, Los Altos Hills, Sunnyvale, Mountain View, Cupertino, Saratoga, Half Moon Bay, San Jose, Campbell, Los Gatos, Milpitas, Santa Clara

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