Questions to Ask Your Insurance Agent About Your Commercial Auto Insurance

There are valuable questions to ask yourself and insurance professionals that will help you find the best commercial auto insurance policy to best fit your business needs. If you are seeking a policy but aren’t sure how to differentiate between your many options, just ask your New Mexico insurance agent these questions.

What Kind of Vehicle?

There are two main categories that vehicles fall under to calculate the premiums for commercial auto liability.

  • Private passenger autos which are based on a flat rate.
  • Trucks, tractors, and trailers which are broken down by gross vehicle weight.

How Many Vehicles Are Required?

The number of vehicles and number of drivers are also factors that insurers use to calculate policy rates. Fleet insurance (bulk buying insurance from a single supplier) can reduce cost on premiums and administration. Fleets generally start as low as three autos and can include trucks, private passenger vehicles or a combination.   

How Are the Vehicles Used?

The type of work activities conducted with the vehicle impacts insurance rate. For example, driving in dangerous conditions through the mountains multiple times per day put you at higher risk than picking up a few supplies twice per week.

Common usage includes transporting goods, traveling to see clients or between job sites, making deliveries, or hauling equipment.

The more time spent on the road means the greater chance of an accident; therefore vehicles that aren’t used very often will need less coverage.

What Constitutes ‘Commercial Vehicle Use’?

You will need to meet at least the minimum liability requirements of New Mexico. In most states, insurance for commercial will be, minimally, the same coverage limits as it is for personal vehicles.

What Vehicles Are Covered?

A business auto policy can be customized to fit the needs of your business.For example, it can be narrowly written to apply to one vehicle or written to apply more broadly to the named insured’s liability pertaining to the use of any auto.

Does Commercial Auto Insurance Cover Personal Use?

Personal use is covered for a business-owned vehicle under your commercial auto policy. However, if you are using your personal vehicle for business purposes, you will need enough liability coverage under your personal auto policy or the necessary commercial auto insurance.

How Much Coverage is Needed?

It is typically recommend for a business liability coverage minimum of $500,000 and a limit of $1,000,000. If you already have a business umbrella policy, it would provide protection for owned, hired, and non-owned vehicles, if the umbrella policy specifies the auto liability policy as an underlying policy.

Speak to a New Mexico insurance agent to see what is needed for your unique business.

How Can I Save?

There are many ways to reduce premiums, by including hiring drivers with good driving records, opting for higher deductibles, and installing safety devices. Using licensed commercial drivers, and purchasing multiple policies may also allow discounts.

About Daniels Insurance, Inc.

At Daniels Insurance, Inc., we have a unique understanding of the risks that businesses like yours face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.