Commercial Auto Insurance
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What is Commercial Auto Insurance? Meaning.
Commercial Auto Insurance is a form of business insurance that covers risks associated to business vehicles.
Commercial auto insurance is designed to provide financial protection for business vehicles against accident, theft, injury, burglary, collision, attempts, fire and other unforeseen situations that have to be specified in the commercial auto insurance contract. This kind of policy also covers business staff while driving insured company vehicles, their own vehicles or rented vehicles for business purposes.
Commercial auto insurance is also known as:
History of Commercial Auto Insurance
The first concept of car insurance is related to cargo ships used during the settlement of colonies in China. In order to protect these ships and their cargo, insurance policies were developed. With the invention of the automobile, new needs arose because motorists must be covered against death, personal injury, property damage. The automobile itself can also be damaged or stolen. Moreover, a car can cause damages to pedestrians, bikers and cyclers and insurance contract should cover also these risks. During the 20s century the number of accidents increased. An English company was the first to offer a car insurance policy in 1895 and in the US it was introduced in 1898.
Cost of Commercial Auto Insurance. Premium
The premium that insurers have to pay may be lower or higher depending on various factors such as:
Coverage of Commercial Auto Insurance. Exclusions
The most common type of commercial auto insurance covers a driver liable for damaging cars or injuring third parties. Other types of commercial auto insurance could include optional coverage which could be: third-party liability, uninsured, collision, property damage, direct compensation, family protection, other benefits.
Every insurance company formulates different types of commercial auto coverage and some of the possible exclusions could be:
In many countries commercial auto insurance is mandatory for small and large businesses. Specific laws regulate the minimum insurance requirement for commercial vehicles.
Fleet Insurance and Individual Policies
Depending on the number of vehicles and drivers to insure we can distinguish a fleet insurance and individual car policies. Fleet insurance provides coverage for all the vehicles of a business and is normally cheaper per car than an individual policy.
This ends our Commercial Auto Insurance summary and forum.
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