Are you shopping for affordable commercial van insurance or commercial auto insurance in California, regardless if you reside in Los Angeles CA, or Long Beach CA?
If so, continue reading on to learn exactly why you need commercial auto insurance, it’s policy structure and insurance coverage schedule.
A commercial auto policy has many layers to its policy structure, and offers different coverage forms designed for different types of commercial automobile exposures.
A commercial van insurance policy may include one or more of the following forms; Business Auto Coverage Form, Garage Coverage Form, and Truckers Coverage Form.
Before we dissect the actual commercial auto policy to help you find savings, but also to ensure you are being fully protected, let’s examine the introduction of commercial auto insurance in California starting with business auto insurance and examining the interchangeable use of commercial auto insurance and commercial van insurance.
If you are a business owner, than you understand the concept of business transportation, since every business operates at least one vehicle to operate their deliveries, performing essential tasks away from their office settings, and to transport employees or clients.
Fortunately for the local business owner, these insurance coverages required on a commercial auto policy are very similar to that of their personal auto insurance policy.
In some cases, the personal auto coverage can also be purchased as part of a commercial package policy, which can lower the cost of your insurance premium.
The business auto insurance policy is a general purpose policy used to write auto insurance for different types of business vehicle risks, such as company cars, vans, trucks and other type of vehicles depending on the type of the business operation, including those that own and supply company cars to employees, those that use vans and trucks to haul their own goods, those that transport passengers, and those that lease vehicles to others.
As a business owner you may have automobile exposures arising out of owned, leased, rented, or borrowed vehicles, which at one time, could be insured under a private passenger auto insurance policy for most risks. The basic policy only provided insurance coverage for autos which were specifically listed and scheduled on the insurance policy, but coverage for hired cars and non owned autos could be added by an endorsement or policy change request. Sometime later, the comprehensive auto liability coverage was introduced, and became increasing popular among businesses operating with large and continually changing fleets.
Your commercial auto insurance coverage part will consist of an auto insurance declarations form, commercial auto insurance coverage form, any endorsements that may apply, special auto insurance coverage forms. In addition, under a business auto insurance policy, different forms are available for special types of risks.
These risks include garage coverage form and truckers coverage form.
The garage coverage insurance form is used to insure garage risks, such as service and repair shops, which have a premises operations exposure and have temporary possession of customers’ cars. The other form labeled truckers coverage insurance form, is utilized to insure vehicles for trucking businesses that haul goods for others, and which frequently exchange trailers with other businesses.
The business auto declarations are somewhat lengthy and are divided into six policy sections. The policy declarations will identify the named insured, the policy number and the form of business (whether it’s a corporation or sole owner, etc.), the mailing address of the named insured, the identification of the insurance company and the producer information, with the policy term period.
The declarations will also list the vehicles insured and the insurance coverages provided, along with the rates, policy premiums, deductibles and other information typically found on an insurance policy declaration page.
When numerous vehicles are insured on the same policy, separate schedules of each vehicle will be attached.
The information is grouped in the following methods:
Various sections exist on the declarations and will be completed as appropriated for the actual coverages being written and described on a commercial auto insurance policy.
If a particular coverage does not apply to the policy, then that section will be left intentionally blank.
Regardless of what city you live in within the state of California, shopping for cheap commercial van and commercial auto insurance can be a daunting task if you are unfamiliar with the process of what your commercial auto insurance will cover, what coverages you actually need, and what to expect once you buy your insurance policy.
If you are a business owner, you understand the importance of being proactive and protecting your assets. Remember, cheap insurance doesn’t necessarily mean protection and security, so make sure to understand what your commercial auto insurance policy entails before purchasing.