According to popular belief, commercial auto insurance is only for big companies with fleets of trucks. But, this is a half-truth. Individuals who use their vehicles for any type of commercial purpose are legally bound to have commercial auto insurance.
Sometimes also termed as business auto insurance, it protects the driver, vehicle, and other valuables from uncertainties. Overall, it is a premium you pay to insurance companies to protect your business vehicle from theft, damage, and other liabilities.
You can easily get commercial auto insurance quotes from a reputed auto insurance brokerage like Surex from the comfort of your home.
Here are some tips for getting commercial auto insurance quotes online in seven steps.
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What is commercial auto insurance?
Commercial auto insurance is a policy that provides physical damage protection and liability to vehicles, including cars, trucks, vans, or any vehicle used for commercial purposes. As commercial vehicles are more prone to accidents than personal vehicles, they need a separate insurance policy.
You need to buy a business vehicle insurance policy if:
- The vehicle is a company car, solely used for work
- People or goods are transported in the vehicle
- Conducting a commercial service with the car
- Employees drive a commercial vehicle
- The company owns the vehicles
- Requirement of high liability insurance limits
How does commercial auto insurance work?
It works similarly to personal vehicle insurance in Canada. But, it explicitly covers vehicles used for commercial purposes. As per your specific business needs, you can choose the type of coverage. Moreover, there is also an option to protect different goods, tools, and equipment that you transport.
Standard commercial auto insurance could help you in several ways like:
- It provides protection when you are responsible for damaging someone’s property or injuring them.
- It provides protection for vehicles, goods, and the loss of use when you aren’t or are only partially responsible for an accident. It means you have to deal with your insurer rather than the other person involved in the accident to recover the damages.
- Regardless of fault, it protects against financial losses while you are injured and recovering from an accident.
- When specifically mentioned, it covers multiple drivers of a commercial vehicle.
Seven-step guide to getting commercial auto insurance Ontario quotes online
Commercial vehicle insurance costs depend on various factors like type and age of the vehicle, type of coverage, number of insurers, and additional coverages. However, the steps to purchase remain the same.
Choose an insurance agent
The first step entails choosing a licensed and reputed insurance agent or broker. Many online websites offer a one-stop destination to compare commercial auto insurance from various reputed insurance companies. To select the best insurance agent, check for referrals and reviews.
Similarly, you can visit your respective province’s financial services commission website to check whether an insurance agent is licensed.
Share your details
After zeroing on an insurance agent or broker, you have to share some details to obtain personalized insurance quotes. The data shared by you remains highly confidential. Here is a list of details you may have to provide:
- Type of commercial vehicle
- Your details such as name, age, and gender
- Your place of residence
- Vehicle usage
- Details of previous insurance policy, if any
- Any previous claims related to the vehicle
Select the type of coverage
After sharing your details, you get the option to select the type and extent of coverage. Broadly, commercial auto insurance coverage is divided into two categories – mandatory coverage and optional coverage.
Mandatory Coverage: It is a law in all Canadian provinces and territories to get mandatory coverage for commercial vehicles. It includes third-party liability insurance and accident benefits. However, it is the most basic type of coverage. Commercial vehicles need more extensive coverage.
Optional Coverage: According to risks and budget, you can add on optional types of coverage such as:
- Comprehensive: It covers damages caused to your vehicle due to theft, vandalism, fire, and collision with an animal. However, it doesn’t cover the costs associated with the collision or rollover of your vehicle.
- Collision: It covers the cost of damages caused due to a collision or a rollover of your vehicle with another object or vehicle.
- Misc: It includes coverage for glass, roadside assistance, tire, and other specific tools or extensions related to your vehicle.
Sit back and relax. Based on your inputs and preferences, you get a personalized list of commercial auto insurance from different companies. You have the option to get it delivered to your email.
Now the ball is in your court. You have to go through the fine prints to select the best coverage as per your needs and budget. However, this is an intimidating task, so it is advisable to consider the next step.
Talk to an broker
Do not underestimate the aid of an insurance broker. They are specifically trained to help their customers identify the best insurance policy. Moreover, they are open to all of your queries so that you feel more satisfied.
Buy and Save
The last step is to checkout. You can easily pay online to buy your insurance. Your vehicle insurance policy will be delivered to your registered email in a day or two. You can also download it from the official website of the insurance company.
Cost of commercial auto insurance in Canada
It is practically impossible to determine a median cost of commercial vehicle insurance as it significantly varies from case to case. Various factors affect your premiums, including the extent of coverage you want. However, you can expect a figure between $100 per month to $500 or more.
Life insurance or personal vehicle insurance is of no use when it comes to driving a commercial vehicle. Although big companies secure their vehicles through fleet insurance, small businesses or individuals often overlook the benefits of commercial auto insurance.
Whether mandated by law or not, it is the best practice to protect your commercial vehicle and drivers from uncertainties. Fortunately, there is coverage for every type of commercial vehicle. Shop around to get the best quotes.