A good number of car owners only insure their personal cars. People who use company cars or use their own vehicle for businesses often don’t think about insurance. Unfortunately, we all forget that company cars have equal if not heavier risks than our personal cars. Although personal car insurance will not cover a company car or your own car while engaged in business activities, you can purchase commercial auto insurance to cover these vehicles.
Having proper protection is essential because company cars are also at risk of theft, accidents, damages, and other things that could affect your business in the short and long term. Sometimes the cost of not obtaining the coverage is the loss of the vehicle; other times, it is the expense of repairs or a new car.
The Reality of Commercial Auto Insurance for Car Dealers
Commercial auto insurance for car dealers can be of two types:
1. Dealer’s Open Lot Coverage-
The open lot coverage covers two kinds of damage.
- Collision coverage- It covers vehicles in your lot involved in a collision when driven by test drivers, or for business/personal use.
- Comprehensive coverage-It covers a comprehensive range of risks which includes theft, vandalism, fire, accidents, and other damages other than collision.
The downside of getting an open lot coverage insurance is that it only covers physical damage.
Additional Coverage
The open lot coverage is the best shot for dealers and used cars to get a chance at securing commercial insurance. Nevertheless, this policy only has coverage for physical damages, which is often not enough coverage.
What additional coverage should you include in your commercial auto insurance policy? There are several additional coverage options available for commercial auto insurance. These options are a result of the nature of the risk car users would be dealing with. One of the coverages that would come in handy is medical payment coverage. This coverage pays for the medical bills of the car user and other people involved in an accident caused by a person insured against this risk.
Another coverage you can include is auto liability insurance. This coverage pays for the wreck or damage done to other people’s cars when you’re at fault. You can also add underinsured coverage to your policy. It enables you to make payments for damages when a third party is responsible for the accident and doesn’t have insurance or funds to pay for damages inflicted on your car.
These are some of the options to consider when looking for commercial auto insurance as a used car dealer. Do you have additional questions about auto insurance? If so, then contact the experts at Phocus Insurance in Phoenix, Arizona. Our dedicated team is eager to assist you with all your coverage needs today.
