Commercial auto insurance covers the value of your vehicle. If an accident occurs, this policy helps cover repairs to the vehicle. As a business owner, this may be critical to keep your company active. However, not all policies are the same. Coverage can differ from one policy to the other. And, you shouldimage of overturned big rig truck customize it to meet your needs. So, how much property coverage is necessary?

The Value of the Vehicle

When choosing any type of insurance, base it on the value of the asset. Commercial auto insurance covers property damage. But, the amount you need depends on various factors.

The value of the vehicle is the amount you would receive if an accident occurs. Like with a passenger vehicle, damage too severe leads to the insurer totaling the car. This means the insurer provides a payment in the amount of the vehicle’s worth at the time of the incident. You need enough coverage to represent this amount.

Consider Replacement Cost

Is it just enough to get the current value of the car? This is not likely. For example, consider what could happen if your insurer totaled your work truck. Now, you cannot perform the duties necessary.

You'll want your coverage to help you get a new truck. But, the truck is older. The insurer cuts a check for $15,000. But, it costs $35,000 to get a new truck to meet your needs. In this situation, you run out of funds quickly. That's because they only paid you for the depreciated value of the truck.

If you choose replacement cost coverage, you can often find it a better type of coverage to obtain. In short, this means the coverage pays to replace the vehicle with one of similar function. It no longer is just the value that factors in here. And, as a result, your company can operate long term without risk.

What Else to Consider

Be sure to speak to your business insurance agent here for cargo coverage. Special equipment may also need a rider. Anything that adds significant value to your vehicle is going to play a role here. You need a policy that properly matches the costs to replace these items if an accident occurs.

It is also important to keep your commercial auto insurance policy up to date. The value of your vehicle can change. Your needs can change, too. Work with your business insurance agent at 512-989-6006 or 844-524-4744 to ensure your policy matches your risks. Try to perform an annual review to do this. It can help you keep costs low without limiting your protections.

Also Read: Will Commercial Auto Insurance Cover Claims of Passenger Injury?

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
Location
1315 Grand Avenue Parkway
Suite 101
Pflugerville, TX 78660

Phone: (512) 989-6006
Fax: (512) 852-4403

In California dba Integrity Network Insurance Solutions License #: l92415

Social Social Social Social
© Copyright. All rights reserved.
Powered by Insurance Website Builder