Commercial Auto Insurance in California

Forms of Coverage Offered by California Auto Insurance

There are different forms of coverage offered by California auto insurance companies, and you should choose the ones that suit your needs and budget. Here are some of the common forms of coverage offered by California auto insurance:

Liability Coverage

California commercial auto liability coverage is a type of insurance policy that protects businesses from the financial consequences of accidents involving their vehicles. 

It covers bodily injury and property damage caused by the business's drivers or vehicles to other people or their property. It also covers legal fees and settlements if the business is sued for such damages. As mentioned above, this coverage is required by law for any business that operates a vehicle in California, regardless of its size or industry.

Collision Coverage

California Commercial Auto Collision Coverage is a type of insurance that protects business vehicles from damage caused by collisions with other vehicles or objects. This coverage pays for the repair or replacement of your vehicle, regardless of who is at fault for the accident. 

Collision coverage is optional, but it may be required by your lender if you have a loan or lease on your vehicle. Collision coverage typically has a deductible, which is the amount you have to pay out of pocket before the insurance pays for the rest of the claim.

Comprehensive Coverage

This is a type of coverage that protects business vehicles from damage caused by events other than collisions, such as theft, vandalism, fire, hail, flood, or animal strikes. This coverage is optional, but it can help you avoid costly repairs or replacements in case of a covered loss. Comprehensive insurance also covers glass damage, such as windshield cracks or chips.

Uninsured/Underinsured Motorist Coverage

Uninsured/underinsured motorist coverage is a type of car insurance that protects you if you are involved in an accident with a driver who does not have enough or any liability insurance to pay for your damages or injuries. For example, if you are hit by a driver who has no insurance and you suffer $10,000 in medical bills and $5,000 in property damage, your uninsured motorist coverage would pay for those expenses up to your policy limit.

Medical Payments Coverage

This covers the medical expenses for you and your passengers in an accident, regardless of who is at fault. It may also cover funeral expenses if someone dies in an accident.

Personal Injury Protection (PIP) Coverage

Personal Injury Protection (PIP) coverage is a type of car insurance that pays for medical expenses and lost wages for you and your passengers, regardless of who caused the accident. PIP coverage is optional in California, and it can be purchased as an add-on to your liability insurance. 

PIP coverage can help you avoid financial hardship if you are injured in a car accident and need medical treatment or time off work. PIP coverage can also cover funeral expenses if someone dies in the accident.

For-Hired/Non-Owned Vehicle Coverage

This type of coverage protects your business from liability claims if an employee causes an accident while driving their own vehicle or a rented vehicle for work purposes. 

For example, if your employee delivers a package using their personal car and hits another car, your business could be sued for the damages. For-hired coverage can help pay for the legal fees and settlement costs.

Bobtail Coverage

Bobtail coverage protects truck drivers who operate their trucks without a trailer attached. This is also known as deadheading or non-trucking liability. For example, if you drive your truck home after dropping off a load and cause an accident, your primary liability insurance may not cover you because you were not hauling cargo. Bobtail coverage can help pay for the damages you cause to others.

Loading and Unloading Coverage

This type of coverage protects your business from liability claims if someone is injured or property is damaged while loading or unloading your commercial vehicle. For example, if you own a furniture store and your employee drops a sofa on a customer's car while unloading it, your business could be liable for the repair costs. Loading and unloading coverage can help pay for these expenses.

Towing and Labor Coverage

When your commercial vehicle encounters a problem on the road that prevents it from moving, you may need to hire a tow truck or a mechanic to assist you. Towing and labor coverage is a type of insurance that can help cover the cost of these services. For instance, if you have a delivery van that gets a flat tire or a mechanical breakdown, towing and labor coverage can help you pay for the repair or the transportation of your vehicle.