WEDNESDAY, SEPTEMBER 8, 2021
Vehicles are a large and valuable asset owned by a business. As such, it is necessary to carry comprehensive commercial auto insurance. This type of coverage provides compensation for damage to the vehicle. The damage must be accidental or unavoidable. It may cover some types of collisions – depending on the type of insurance the owner has. But, when an accident occurs, how much does the insurer actually pay out? 
The Value of the Vehicle
Much like consumer auto insurance, commercial auto insurance options exist to give drivers options for coverage. How much the company pays depends on the type of policy. Actual cash value is one common type. In this form, the company will pay the owner the value of the vehicle at the time of the accident. It pays up to the limit listed on the policy. The actual cash value is not the cost to replace the vehicle.
Replacement cost is the direct opposite. Some insurers may recommend this for a vehicle. Vehicles that are hard to replace need this coverage. It allows the owner to receive enough funds to replace the vehicle at today's costs. Again, there are limits on the policy pay out.
Consider Other Factors
Most commercial auto insurance provides contents coverage as well. This coverage pays out for the contents of the vehicle. In a standard car, this might include navigation systems, personal belongings of drivers, and other items normally stored in the vehicle. In a big rig or a larger truck, it may include refrigeration systems and even product that the trucker is moving from place to place. Contents coverage has limits as well. The policy will outline how much coverage the driver can expect.
Adjusting Your Policy
Take a close look at your current commercial auto insurance coverage. Like with all business insurance, review it every year. Be sure it reflects your current risks. Be sure it offers enough coverage to pay out at the level you need. Imagine if an accident occurs in which you cannot repair the vehicle. How much money do you need to replace it and get back on the road?
Work with your business insurance agent to customize your coverage. Focus on ensuring the coverage you need is present on your plan. Upgrade it to make sure it matches your needs.
Need commercial auto insurance? We can help! Call AAAA Insurance at 713-774-2222 today. We will offer you a fast, free policy quote.
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