What is Commercial Car Insurance?

Delivery companies, police departments, rental car companies, and other organizations face multiple risks on the roads in California.

For instance, if the car develops a mechanical problem en route, a company can suffer delay or theft, leading to loss.

Fleet owners can leverage commercial car insurance to manage risks and save money.

And more importantly, organizations that take up commercial car insurance must comply with the law of minimum liability coverage.

Here’s what you need to know about commercial car insurance coverage.

What Does Commercial Car Insurance Cover?

Commercial car insurance protects a fleet of cars against general liabilities in the transport sector.

An insurance company can customize your coverage with addons to ensure it meets your business needs.

Keep in mind that insurers find it economical to offer commercial plans for fleets instead of individual car insurance.

If you’re in the car rental business, working with insurers specializing in this business line is advisable.

The specialized insurers are more suited to provide tailored solutions.

For instance, they can have additional products like personal injury covers that your customers might need.

How to Get a Customized Commercial Car Insurance Cover?

Standard coverage helps to fulfill the minimum liability coverage. In most cases, it consists of the same element of risks as other classes of vehicles.

Consider a higher range for enhanced protection of your assets, clients, and business needs.

Here are additional items you can request:

• Insured Value: If there are variations between the fleet value with the standard amount, it is prudent to seek an upgrade from your insurance agent.

• Body Injury Liability: Consider paying a higher premium to cover medical expenses and court fees for potential injuries to other drivers or passengers in accidents. 

• Engine and Gear Protection Cover: A typical commercial car insurance policy insures the engine against accidental damage. On the contrary, an engine and gear protection coverage shields your fleet against repairs or damage to the engine. The coverage can protect your organization from the cost of engine damages that arises from weather events, poor drainage, or typical engine defects.

• Accessory Cover: It’s common to add accessories to enhance safety and achieve customization. These modifications— e.g., chrome parts, custom paint job, or engine guard— are not covered in the standard cover. So, it’s advisable to request accessory coverage to mitigate exposure.

Frequently Asked Questions About Commercial Car Insurance

Are there discounts if drivers undertake safety courses? Insurance companies consider training as one way to reduce claims that result from careless driving and risky habits.

What is the Minimum Number of Cars Can You Insure? Most insurance companies allow a minimum of 5; however, some firms go as low as 2 for exceptional cases.

Try Our Commercial Car Insurance Services

Prudent risk management plays a crucial role in the success of fleet management. Partnering with a reputable insurer like Panorama Insurance Agency is vital in protecting your valued fleet. 

Contact us to learn more about Commercial Car Insurance in Northridge, CA.