California commercial business owners are responsible for fulfilling all mandated auto insurance prerequisites. The applicable laws prevent these commercial business owners from registering a new car and renewing existing automobile tag registration without physical proof of coverage. Through the purchase of Commercial Auto Insurance, they fulfill these requirements and receive adequate coverage for their vehicles.
What are the Requirements for Commercial Auto Insurance?
The values for commercial auto insurance is the exact same values applied to personal vehicles. The owners need $15,000 for each initial injury and a maximum payout of $30,000 for the entire accident. They’ll need at least $5,000 worth of coverage to pay for any property damage that occurs.
What Protection is Provided With Commercial Auto Insurance?
The type of commercial coverage chosen determines what is covered exactly. The minimum requirements cover the other party’s vehicle and repair requirements only. The maximum level of commercial coverage obtainable is comprehensive.
Comprehensive coverage covers the other party as well as the business owner’s vehicle. These policies may provide additional services such as rental car payments while the vehicle is repaired or replaced. It covers auto accidents, natural disasters, and collisions. This could include falling debris. Commercial business owners should evaluate the terms of their policy to identify all levels of protection offered.
What are the Limitations of These Policies?
Commercial auto coverage applies to the use of the vehicle for business purposes. This indicates that neither the business owner or their employees are covered during any personal use of the vehicle. Personal use is defined as driving the automobile outside the function or duties provided by the business or its employees. Once the business is closed for the day and all tasks are managed, any use of the vehicle is classified as personal and isn’t covered under commercial insurance.
California commercial business owners should evaluate the full terms of their policies. If they don’t possess commercial coverage, they aren’t covered adequately for all probabilities. Personal auto insurance doesn’t provide coverage for business services. It could impose restricts on the owner. Business owners who wish to evaluate Commercial Auto Insurance should visit us website for further details about coverage today.
