Commercial Auto Insurance Specialists in York

As a business owner, you may have one or more vehicles, such as delivery vehicles, dump trucks and cargo vans. The right commercial auto insurance covers you for accidents, injuries and other incidents that can put those investments at risk.

What Commercial Auto Coverage Do You Need, and How Much?

What are the risks to you, your drivers, and your business that commercial auto insurance can cover?

Driver Distraction and Commercial Automobile Operation

The Department of Transportation investigated the impact of distraction in commercial motor vehicle (CMV) crashes and safety-critical events in 2009. They found the following:

• Drivers were involved in non-driving tasks in 71% of CMV crashes
• Distracted driving caused 46% of near-crashes and 50% of safety-critical events

Types of Vehicles Commercial Auto Insurance Covers

Commercial automobile insurance is a broad term that refers to most commercial business automobiles, including but not limited to:

• Company cars
• Cargo vans
• Delivery vehicles
• Dump trucks
• Trailers
• SUVs
• Pickup trucks

Commercial auto policies cover personal cars used for business, as well as SUVs, light-duty trucks, trailers, vans and other delivery vehicles used solely for business purposes.

These vehicle types are associated with a range of risk factors, including how you use them, how often, and how many miles they travel each year, among other factors. Insurance companies review these risk factors, along with any efforts your company may make to improve driver safety, when they assess the amount of coverage your business needs.

If you are looking for coverage information on large trucks and heavy equipment used for business purposes, refer to the commercial truck insurance section.

What Does Commercial Auto Insurance Cover?

Commercial auto insurance is similar to personal auto insurance in basic coverage, such as liability, comprehensive, collision and other types of coverage that are specific to business vehicle use. A commercial auto policy is designed to protect your business from significant losses that could affect your company’s financial well-being.

Commercial auto insurance policies combine several different types of coverage — some are required, and some are optional. A typical policy includes some combination of the following:

• Bodily injury liability: This portion of the commercial auto policy covers harm to others in an accident caused by you or your employee. Bodily injury coverage will provide compensation for medical costs, funeral costs if necessary, and the costs associated with a lawsuit. The amount of compensation the injured party will receive depends upon the limits set on your bodily injury liability coverage.
• Property damage liability: This coverage will pay the costs to repair property damage caused by you or your employee. The amount of protection your company receives is based on your policy's limits. It is a good idea to work closely with an independent agent to assess your risks as well as the potential costs of injury, property damage and legal fees. For the best protection, consider buying a commercial umbrella liability policy.
• Collision: As with your personal auto policy, a good commercial auto policy should include adequate collision coverage to pay for the damage to your vehicles in the event you or your employees cause an accident. You retain a part of the risk by choosing a deductible amount that fits your risk tolerance. The more you have the insurance company pay (lower deductible for you), the higher your premium. The higher your deductible (the more risk you assume), the lower your premium will be for this coverage.
• Comprehensive: Known also as “other than collision,” your comprehensive coverage is an important protection for damage to your vehicle or loss due to causes other than collision. These causes can include weather, theft and vandalism. As with collision coverage, you choose the comprehensive deductible you're comfortable with that fits your budget.
• Uninsured and underinsured motorists: If one of your drivers is in an accident caused by another motorist who does not have adequate insurance, this coverage will help to pay for your injuries up to your policy's limits. Depending on state law, the coverage may also have a physical damage component that pays for vehicle damage, although this does not apply in Pennsylvania.
• First Party Benefits: This coverage offers various levels of protection for medical, funeral, accidental death and income loss for insured drivers. Not all of these benefits are mandatory.
• Additional optional coverage: A wide range of additional coverage types may be available, depending on the insurance company you work with and the state your business is in. For example, you may be able to buy coverage for your employees when they drive a car or truck your company does not own.

You might also buy coverage for a rental replacement auto if your company car is in the shop. You could opt to get towing and roadside assistance. Some insurance companies even provide very specific coverage for companies that load and unload cargo due to the increased liability risk involved.

The right commercial insurance can protect you, your business, and all of the drivers in your commercial cars, vans, pickup trucks or box trucks in an accident. One of the most critical ways to protect your company is by having adequate liability coverage in case you or one of your employees causes an accident that injures another person or damages their property.

Consider Commercial Umbrella Coverage for Additional Liability Protection

As a business owner, you may have assets like a building, vehicles, machinery and office equipment that could be at risk if you lose a lawsuit. A commercial umbrella plan provides excess liability protection over your base policies, giving you extra protection and peace of mind.

For example, suppose you have a commercial auto policy with liability limits of $500,000 and an umbrella plan that provides an additional $1 million of coverage. If a settlement or judgment results in an award of $700,000 to a third party, the umbrella will cover the extra $200,000.

Does Commercial Auto Insurance Cover Personal Use?

Small business owners and entrepreneurs often use their own cars while on the job without a second thought. However, it is important to know that your personal insurance may not cover commercial use of your auto.

It’s very common for a small business owner to send an employee out on an errand, whether to get supplies from the local store or to give a business consultant a ride from the airport.

If the staff member gets behind the wheel of his own car, and the business owner does not have a commercial auto insurance policy in place that covers that worker and his car, any injuries or damage that result from an accident may not be covered.

Regardless of how much or how little you and your employees use personal vehicles in the course of doing business, getting adequate coverage in place can prevent a financially damaging event from putting your business and your employees at risk.  It's important for your employee to inform their insurance provider that they may be using their vehicle for business-related activities

What Is the Cost of Commercial Auto Insurance?

Commercial auto insurance policies are typically more expensive than personal auto plans because they must cover an entire business. This scope may include multiple drivers, some of whom could have less-than-perfect driving records, and several vehicles. A smaller business that only needs to insure one or two vehicles will likely have lower premiums than a company with an expansive commercial fleet.

Specific factors that impact commercial auto insurance rates include:

• Risk level: Businesses engaged in occupations and activities such as construction, delivery and hauling pose a more significant risk and will experience higher insurance premiums.
• Vehicle volume and type: More vehicles to insure mean higher insurance costs. Also, trucks, buses and limos are more expensive to cover than private passenger automobiles.
• Frequency: Cars and trucks that spend all day on the road present an increased accident risk and cost more to insure than vehicles that are only used for an office commute.
• Coverage limits: Choosing higher limits increases your protection level but also raises your premiums.  We highly recommend carrying higher limits on commercial auto policies due to the exposure you, as a business owner, have to potentially larger suits and settlements.
• Claims history: Numerous previous accidents position your company as a greater claims risk and will make commercial auto insurance more expensive.

Why Choose Us for Commercial Auto Insurance?

As a local independent insurance agent headquartered in York, AAdvantage Insurance Group, Inc. can meet all your commercial auto insurance needs in one convenient location. We partner with multiple carriers to help you find the most cost-effective products for your company's unique coverage requirements.

Our needs-based approach ensures you get the right coverage types and amounts for your unique situation. We will ask questions about your business and its vehicle usage to determine the most appropriate options.

You may be asked questions such as:

• How many commercial automobiles do you have?
• How are those vehicles used? For example, do they transport people, goods, hazardous materials or food?
• How many miles does each vehicle typically travel in a year?
• How many drivers do you have?
• What are their ages and levels of experience?
• Have your drivers taken a safe driving course?

Contact Us for a Commercial Auto Insurance Price

Are you looking to purchase commercial auto insurance in York? Do you want to upgrade your current program to meet your business's evolving needs?

The experienced, knowledgeable team at AAdvantage Insurance Group is ready to assist you. Call our office to speak to an agent today. You can also start the quote process online, and we will contact you to gather additional information.

Either way, we’ll make the process simple!