There are many businesses out there that require the use of vehicles in order to operate and be effective. What you may not know is that if this is the case for your business, insurance may be required by most states. Navigating the complexities of commercial auto insurance can be a daunting task for many businesses.
However, understanding its benefits, backed by solid data, can significantly demystify this essential coverage. In this article, we’ll explore the undeniable advantages of commercial auto insurance, leveraging insights provided by the Hartford.
Commercial Auto Policies Reduce Accident Financial Risks
Businesses that operate vehicles face considerable risks for each mile traveled. Accidents involving company cars, trucks and more lead to expensive claims frequently. In fact, traffic crashes cost America around $340 billion a few years ago.
With so many firms relying on vehicles for conducting operations, crashes threaten to derail businesses by triggering large, unpredictable expenses. Protecting corporate fleets through coverage is crucial – especially considering over 70% of company car accident costs tie to bodily injuries from factors like driver fatigue.
The average commercial auto insurance policy, according to The Hartford, costs $574 per month, or $6,884 annually. While not an insignificant ongoing investment, coverage protects when costly incidents strike suddenly. For example, medical bills for injured employees or others can escalate rapidly, as can vehicle repair or replacement fees.
Lawsuits connected to severe crashes also rack up steep tabs. There is a helpful resource from the Hartford in the form of a commercial car insurance video that can help answer any questions that you may have.
Having coverage critical for handling expenses tied to property damage, bodily injuries, losses from stalled operations and legal claims.
The Hartford indicates costs from commercial auto accidents add up fast. From ambulance rides and ER visits to smashed cars to hiring pricey lawyers, bills stack up exponentially without insurance backing.
Additional Company Car Insurance Benefits
Beyond crash-related protections, commercial auto policies offer advantages relating to potential fines and licensing requirements. Businesses must comply with transportation regulations for properly credentialing drivers of vehicles like company cars, vans and trucks.
Carrying adequate insurance is mandatory in most states in order to legally operate these fleets in nearly all areas.
Also, companies face threats like fines over equipment violations during cargo deliveries. Minor compliance oversights become major headaches without coverage cushions. Furthermore, the right policy provides coverage supplements for rented and personal vehicles used for work too.
Rather than excluding standard damages if an employee vehicle sustains dents during a job, protection would be valid.
Weighing the Clear Benefits of Commercial Auto Insurance
When considering potential costs, investing in commercial auto insurance is an obvious choice. If just a single serious company vehicle crash happens annually, coverage likely saves money based on average policy pricing.
And according to crash data, collisions are unfortunately quite likely over time in fleets. That’s not even accounting for related expenses like fines or legal claims either tied to driving operations. Nor does it factor all the licensing, regulatory and rental car protections provided.
In totality, statistics clearly show why obtaining adequate commercial auto insurance should be non-negotiable for businesses running vehicles. Just one disastrous accident could financially debilitate companies without a policy cushion. And even minor scrapes risk profit losses from repair downtime. Safeguarding corporate fleets is essential for stability.
Evaluating options using an independent insurance agency ensures finding the right commercial auto insurance fit too.
