If you use your vehicle beyond commuting to and from work in California, a business auto insurance policy is something worth some serious consideration.
But if you own a car or fleet of vehicles that you use solely for business purposes, you need commercial auto insurance.
A typical commercial auto insurance policy includes liability insurance, collision, comprehensive, and medical coverage. There are also additional optional coverages that may be relevant to your business, such as single deductible, hired auto, down-time rental, non-owned vehicle, and cargo.
Businesses that Need Commercial Auto Insurance
Many types of businesses that use vehicles to operate need commercial auto insurance coverage, including:
There are specific factors that can affect the cost of a California commercial auto policy, including the following:
California Commercial Auto Insurance Requirements
The State of California mandates all commercial auto policies to carry a minimum liability limit of $15,000 per person, $30,000 per accident for bodily injury, and $5,000 for property damage. However, there are also policies for higher limits depending on the types of vehicles being insured.
Also, vehicles that carry a USDOT or CA state serial number are subject to separate coverage requirements. For example, semi-trucks and other large vehicles traveling interstate are usually required by the Federal Motor Carrier Safety Administration (FMCSA) to have a minimum combined single limit of $750,000.
When selecting limits to suit your business requirements, always consider the unique risks that could leave you vulnerable and liable for sizeable debts and hurt your business performance.
Better yet, allow us to work with you in choosing the most beneficial coverage for your business.
Get in touch today at 818-248-4500.