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.
Commercial auto insurance for car dealers can be of two types:
The open lot coverage covers two kinds of damage.
The downside of getting an open lot coverage insurance is that it only covers physical damage.
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.
We are PROUD to have been selected to join the Rosie on the House Partnership Program --- representing al the great listeners, friends, and family of the Rosie Romero "Rosie on the House" program.
Our family has been writing Rosie and Jennifer Romero's personal (and now business insurance) for the past 30 years right here in Phoenix, Arizona.